If the Housing Bubble is About to Burst, When is the Ideal Time to Buy?
I read a post in the Housing Bubble blog about a Nonstop Flood of Foreclosures in Denver. This summer, there is supposed to be a record surplus of homes in Denver. Will this drive prices down? Theoretically it should, right? Ideally, I would like to buy in February 2007 but am afraid that I could buy when prices are at its peak.
Any thoughts on timing?
posted by ScaredOfMoney @ 10:27 AM
1 Comments:
Do the calcuation for a fixed rate mortgage. If rent for a comparable place (bed/bath count, square footage, land size) is reasonably close to the mortgage payment and you can afford it, it makes sense.
You may end up paying more a bit more in the short-term, but you'll have two very important things:
1) Security
Even if housing prices fall in the short term (meaning 5 years vs. your 30 year mortgage), if you can afford the monthly you'll be okay in the long run.
2) Flexibility
If you can rent it for close to or more than the mortgage, you have options to move. Too many people during this bubble just assume housing goes up and you can sell for a profit. Renting it out is another option.
It's hard to avoid the "mob mentality", but considering how this is probably the biggest purchase in your life, I don't see why being cautious is such a bad thing.
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