8.30.2007

COUNT YOUR MANY BLESSINGS


Can I just say how fortunate I feel to have not bought a house during the past few years of this real estate craze? When we first moved back to California, we were both working full-time and a mortgage company pre-approved us to buy a $650,000 tract home in Camarillo. Although we knew it was idiotic,
almost everyone around us was telling us what a great investment it would be, how the home will go up a gazillion percent in the next year, how we can just refinance our adjustable rate mortgage using the equity we will gain, how everyone does it, and my favorite scare tactic, "Get in now or you'll be shut out of the market forever!"

Consequently, we visited with that same mortgage broker 6 months ago to look at our possibilities of buying a home in Tehachapi. His advice to us, "Do not buy a home right now. Wait." Since then I have had another mortgage broker give us the same advice. You know it's bad when the people selling mortgages are telling you not to buy one!

Of course we're still tempted to buy all the time. I am always wondering, "Is this the bottom? Is this it?" Fortunately, now that the decline of the housing market is a well accepted fact and people are getting scared, I am starting to feel better about our decision to wait. Another good thing is that the market is excellent for renters right now, at least in California. Since so many investors are desperate to fill their homes and there are so many vacant ones, homes are starting to rent for way under "market value".

Since they've started actually verifying people's incomes, we can't buy a $700,000 home anymore. Shucks! I don't really know what the housing market is like in other parts of the country, but in California it is starting to look really good for people like us. This isn't to say that home ownership is a bad thing. I still believe that if you plan on staying in your house for 10 years, you'll obviously make money on it, but it's the house flippers that I want to thank from the bottom of my heart.

Now, if I can just be patient and keep saving...

7 comments:

  1. hip-hip-hooray for people who took out crazy loans to buy houses!

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  2. I heard something, don't know where, but it was saying that some politician was asking for federal help for those who are about to fall into repossession. I know that losing your house is sad, but I do NOT want my taxes going to pay for the home you couldn't afford in the first place. Meanwhile, I'll keep dreaming of owning a home in this inflated market!

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  3. The soonest we will be looking into buying is next year... partially because we can't afford it now, but also it will give time for the market to drop even more! Homes in the OC are going for $700,000-$1,000,000+. Condos are going for $300,000-500,000. Unbelievable!

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  4. We just bought a home in Georgia yes I said Georgia.... Its another world over here and well the market isn't bad. 1500-1700 square feet start at about 130,000. not bad huh... But we have heat, humdity, and bugs, bugs, bugs here; any one what to come and live here??

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  5. I'm happy that it is going down. Also guilty because I'm happy people made poor decisions (I was so obsessed with owning a home some times it could have been me). I'm also worried that I won't save enough before it goes back up again (Though I predict the soonest that will happen will be is 3 years, but I'm hoping for at least 5).

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  6. I'm so glad we don't have a house to unload at this time. My parents have been trying to sell their house for 2 years now. They put it on the market 3 months too late.

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  7. Cristin, I like it how you can be so blunt in your blog that you can "nicely" make others feel bad for making wrong decisions

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