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Good Time To Be A Renter

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Rambunkscious

Beach Lover
"Never be caught paying good money on a mortgage when you can rent for so much less"

This is now true. When you consider mortgage costs at 7-8 %, crazy, crazy,
insurance costs and purely INSANE property tax levels, and NEGATIVE appreciation, it is AN EXTREMELY POOR BUSINESS DECISION to buy a house at this time.

When you add pool and yard maintenance fees, homeowners fees that are sometimes covered by leases, its nuts to buy now.
 
owning real estate now has a large opportunity cost, in addition to large carrying cost.

rent rates are still screaming, R-E-N-T, don't BUY~ at the top of their collective I/O ARM lungs.
 
Rambunkscious said:
"Never be caught paying good money on a mortgage when you can rent for so much less"

This is now true. When you consider mortgage costs at 7-8 %, crazy, crazy,
insurance costs and purely INSANE property tax levels, and NEGATIVE appreciation, it is AN EXTREMELY POOR BUSINESS DECISION to buy a house at this time.

When you add pool and yard maintenance fees, homeowners fees that are sometimes covered by leases, its nuts to buy now.
Click to expand...

If you are talking strictly sowal, you may be right. However, every market and buyer is different so this blanket statement may not be true.

Today's 30 year fixed rate loans can be had at 6.125.
 
spinDrAtl said:
If you are talking strictly sowal, you may be right. However, every market and buyer is different so this blanket statement may not be true.

Today's 30 year fixed rate loans can be had at 6.125.
Click to expand...

Spin,

But I heard things have changed in the last month. Aren't lenders requiring the borrower have a downpayment, a steady job, a decent FICO, and a debt ratio that will allow them to pay back the loan?

.
 
That 6 percent is for someone that is AAA plus credit with a huge down payment and a ton of side cash JUST in case. I love the stories i read here from the "experts" that havent talked to the real people not the fake realtor hypsters that work at restaurants serving up food to pay their bills now that things are bleak and getting bleaker. The microscope lenders are using now make a procto look inviting - if you dont believe me call one - the first question is "how much money do you have?" not the question from a few years ago which was "What do you want?"...Youd have to be Warren Buffet to get a 6 or even a mortgage on a high priced anything in So Wal and especially if this is the typical second home.

The problem w this area is the folks like Spin that talk hype - you can get a mortgage cheap - BS...the market here is DREADUL and will get worse. The bottom isnt anywhere near today...maybe next year. There is a glut of homes and condos and a glut of available rentals. Some homes are sitting for months before anyone wil even ask for a showing...and thats A FACT. Condos are sitting for months with no one asking for a showing.

What fool would jump both feet into this mess and buy anything. Rent and ask for the deal of the century. Most will take a cut off the rent and sec deposit just to get you under wraps for a year - until this turns some.
 
cubsfan said:
The problem w this area is the folks like Spin that talk hype - you can get a mortgage cheap - BS...the market here is DREADUL and will get worse.
Click to expand...

I guess everything is relative. I think that people who had a loan during the Carter Administration, when interest rates were over 20%, would say that that a 10% mortgage was very cheap.
 
cubsfan said:
That 6 percent is for someone that is AAA plus credit with a huge down payment and a ton of side cash JUST in case. I love the stories i read here from the "experts" that havent talked to the real people not the fake realtor hypsters that work at restaurants serving up food to pay their bills now that things are bleak and getting bleaker. The microscope lenders are using now make a procto look inviting - if you dont believe me call one - the first question is "how much money do you have?" not the question from a few years ago which was "What do you want?"...Youd have to be Warren Buffet to get a 6 or even a mortgage on a high priced anything in So Wal and especially if this is the typical second home.

The problem w this area is the folks like Spin that talk hype - you can get a mortgage cheap - BS...the market here is DREADUL and will get worse. The bottom isnt anywhere near today...maybe next year. There is a glut of homes and condos and a glut of available rentals. Some homes are sitting for months before anyone wil even ask for a showing...and thats A FACT. Condos are sitting for months with no one asking for a showing.

What fool would jump both feet into this mess and buy anything. Rent and ask for the deal of the century. Most will take a cut off the rent and sec deposit just to get you under wraps for a year - until this turns some.
Click to expand...
You can't buy in Malibu either, but that does not change the fact that 6.125 is historically cheap money. Your post tells me your under 30 years of age, so your getting a pass today. Read up on FHA programs and expand your search area, or rent. It's a buyer's market for the short term in SoWal.
 
When I was shopping around for mortgages within the last year I was offered rates at or close to prime (prime plus 1 or 1/2) by the local banks. I have a good credit history, but not stellar as I haven't been out of school that long, pay my bills on my schedule, not theirs, and my credit card "emergencies" have included a trip to Italy that took a couple years to pay off.

I'm glad bankers are now looking carefully at whether or not people can afford their mortgages. Would have saved a lot of trouble and stress if they'd been doing that all along.
 
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