SPy // 29 February 2008 at 7:29 am
“I received an inheritance last year and finally have money for a down payment. Well no way!
After years of being on the sidelines of the feeding frenzy, I’m staying there. It’s going to pop and I’m not going to be the one left with the hot potato—a house worth less than i paid for it. “
Vansanity // 29 February 2008 at 8:06 am
“We’re waiting to buy. We have well above average income and savings that, in a different market, could buy a decent house outright. Right now, we pay 800/mo rent in a great area, love it, setting aside lots of our money into our savings and various investments.
Let’s look at it like this: $1K/mo to live where we do, $12,000/yr, over three years that will be $36,000. If we buy a place today for $500,000 in three years we will have spent closer to $80,000 but would have reduced the principal by what? $10k? if that. So, instead of buying now, if the market corrects over that $36,000 in three years, we’re laughing. And really, let’s be serious here, markets are 30-40% over the trend line, that equates to a much larger correction than a measly $36K, over three years I wouldn’t be surprised if that $500K property was selling for $375K.”
