6. Held my Nose and Leapt

Stories about people buying out of ‘priced-out forever’ fears, spousal cajoling, or other pressures.

6 responses to “6. Held my Nose and Leapt

  1. People are hooked on the idea of buying. Developers reel them in and get them to pay up front. They hope for the best. Then…

    Here’s a recent story:

    http://paulmct.wordpress.com/2008/02/27/never-pay-the-dealer-up-front/

  2. This from Dabber, originally posted on the 9. Delaying Buying link:

    Dabber // 29 February 2008 at 9:21 pm
    I have waited a long time to delay my home purchase, however the price keeps going up to a point where this is it. If I dont’ get it, I WILL be priced out. End result, I bought a place early 2008. I have no regrets even if it goes down because it’s a place I am willing to stay for a long long time.

    People say prices are bound to come down, they have said so for many years. However the conclusion I see, is nothing is guaranteed.
    (a)

  3. I am in the same boat. Purchased a first home in Late 2007 and have wondered about the wisdom of that choice.

    Here’s how I see it: I was finally in a position to get into the market. I had no crystal ball so all I knew is that I should get in while I could. Like Dabber, I have no regrets. I may have been unlucky on the timing but I had to get in sometime or face getting priced out.

    If you own the home you live in and can comfortably afford the mortgage…why worry if prices drop? You still gain equity (provided you don’t have a 30yr+ mortgage).

  4. Thanks for the comment, sophiedog07.
    I hope that you remain comfortable with your home through all the changes that are occurring.
    However, for the record, it is important to point out that price drops are important to the vast majority of recent buyers.
    If you buy near a top in the market, you pay dearly for any ‘equity’ that you may eventually ‘gain’ in that home.

  5. It’s true what you say about the price drops and how this would concern many. But in the long run, you have to live somewhere and if you can afford a home why not do it – Market ups and downs be damned. (these are my thoughts only)

  6. spophiedog – It’s simple math: When housing prices are grossly overinflated based on fundamentals like rental income, it is much cheaper to rent than it is to ‘rent’ a mortgage and ‘buy’ a property to live in. Furthermore, the latter option includes exposing oneself the risk of property prices dropping.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s