or the prices will be coming down more?
It’s so confusing now a days, some time it seems like the economy is back on track and next day having cash seems the best bet. Recently I have been so tempted to see so many nice houses coming in market but I also don’t want to risk my hard earned savings :S
Re: Is this the right time to buy real estate in US?
Mods, please don't move this thread to any other section
gracias!
Re: Is this the right time to buy real estate in US?
It is buyers market , and a good time to invest. But here is a tricky part don't give too much down payment because market hasn't hit the bottom yet.
Re: Is this the right time to buy real estate in US?
maybe, if you are looking to buy rental properties. single family homes will probably get cheaper for the next several years.
Re: Is this the right time to buy real estate in US?
^ hate to take the other side of the q guy - but looks like there is lots of gloom and doom around. Typically, that is the time.
Of course, real estate is local. One should look at inventory (# of months worth unsold), how inventory compares with historical value, the price/rent ratio (lower the better), trend of foreclosed homes still languishing waiting to be sold etc. Last week's WSJ had an article which stated these trends have plateaued - that is not getting worse.
best not to get swayed by day to day high to low to high to low sentiment shift and form your own logic for whether it makes sense to buy now.
Disclaimer - I know zilch about real estate.
Re: Is this the right time to buy real estate in US?
Coincidentally. todays WSJ states "Housing market looks near a bottom" 6 years after the peak
Re: Is this the right time to buy real estate in US?
crisis is around corner, if you want to invest in another detroit in making, go ahead.
Re: Is this the right time to buy real estate in US?
^ Point is - this time everyone is talking about it - so is the crisis priced in?
Actually this thread may be the best indicator - more people who come up with a negative view, probably the best contrarion indicator?
Re: Is this the right time to buy real estate in US?
Depends where you are investing but most US real estate is way overvalued at the minute. The whole western economy has been built on nothing but ever increasing house prices over the last decade or so, and unless the banks wil, start lending people 10X salaries. There is only one way house prices are going to go imo.
Re: Is this the right time to buy real estate in US?
a multiunit rental property in the right location, like a collegiate town or close to commercial areas should be fine.
if you are poking to hold an income generating property for some time you can find some good deals, especially if you are not highly leveraged.
The speculative flipping greed played a huge role in the real estate crises not just in US but also in Dubai and Karachi, so the quick bucks are going to be few, but as an income producing investment that is paying for itself, that you can accomplish.
Re: Is this the right time to buy real estate in US?
Depends where you are investing but most US real estate is way overvalued at the minute. The whole western economy has been built on nothing but ever increasing house prices over the last decade or so, and unless the banks wil, start lending people 10X salaries. There is only one way house prices are going to go imo.
I think real estate peaked in 2005 and has been in a 6-year bear market. I agree with your premise that house prices increased for a long time - not sure if they have increased over the last decade. If they are overpriced now, then they were ridiculouly overpriced in 2005 I guess.
Anyway, I dont know abt real estate much, so OP take whatever I say with a huge dose of salt.
Re: Is this the right time to buy real estate in US?
Why don’t give much down payment? Actually I am planning to pay around 30-40% down payment and repay the rest of the mortgage in coming 5 years insha Allah. I don’t like credit much 
Re: Is this the right time to buy real estate in US?
a multiunit rental property in the right location, like a collegiate town or close to commercial areas should be fine. if you are poking to hold an income generating property for some time you can find some good deals, especially if you are not highly leveraged. The speculative flipping greed played a huge role in the real estate crises not just in US but also in Dubai and Karachi, so the quick bucks are going to be few, but as an income producing investment that is paying for itself, that you can accomplish.
Exactly!! that's what I am thinking to buy something near the city and rent it out as the rents are going to get high because of the housing market crisis
Re: Is this the right time to buy real estate in US?
It is buyers market , and a good time to invest. But here is a tricky part don't give too much down payment because market hasn't hit the bottom yet.
Since you are on the hook for the entire loan amount, why should amount of down payment depend on if market has bottomed or not.
In most cases, arent market bottoms more obvious well after markets have hit a bottom? Do you have a feel for how much percent down from these levels the bottom is expected - 10%, 20% or higher?
Re: Is this the right time to buy real estate in US?
Exactly!! that's what I am thinking to buy something near the city and rent it out as the rents are going to get high because of the housing market crisis
If housing has further to fall, renting makes sense.
However, if housing bottom has arrived, then maybe buying a house is better?
Question is, the market does not ring a bell and announce a bottom. But I like your reasoning (as long as housing has further to fall)
Re: Is this the right time to buy real estate in US?
Are you buying investment property or for yourself? It depends if you are buying investment property you can give 50% down or buy it on cash since rents are really high these days and you will recover it soon. But if you are buying for first time than think before you invest because home is everyone’s biggest investment in their lives and you don’t wanna see your money going down the drain.
Re: Is this the right time to buy real estate in US?
Since you are on the hook for the entire loan amount, why should amount of down payment depend on if market has bottomed or not.
In most cases, arent market bottoms more obvious well after markets have hit a bottom? Do you have a feel for how much percent down from these levels the bottom is expected - 10%, 20% or higher?
Look if your house price is going to fall and you will sell it whose money will be at loss. For example if you buy a house for 300,000 and you pay 30,000 down which is ten percent and in the next six months your house price fells down to 10% , do you think you are gonna get your 30,000 back if you sell your house.
Re: Is this the right time to buy real estate in US?
Look if your house price is going to fall and you will sell it whose money will be at loss. For example if you buy a house for 300,000 and you pay 30,000 down which is ten percent and in the next six months your house price fells down to 10% , do you think you are gonna get your 30,000 back if you sell your house.
No you wont get 30000 back - but even if you put 0 down, and sell the house, you would owe the bank the 30000.
Re: Is this the right time to buy real estate in US?
No you wont get 30000 back - but even if you put 0 down, and sell the house, you would owe the bank the 30000.
Yes you would but may be you get bail off by doing short sale and bank will approve it, in another case if you have paid the amount bank won't care its not their money.
Re: Is this the right time to buy real estate in US?
Yes you would but may be you get bail off by doing short sale and bank will approve it, in another case if you have paid the amount bank won't care its not their money.
Wow, great point! I agree with you- just never thought of it that way.
I assume short sale means bank allows you to sell for less than what you owe and does not come after you for the difference?