Monday, June 12, 2006
My Home: If You Believed Housing Prices Would Come Down...What Would You Do?
If you believed that housing prices will come down within a couple years, but you found a pretty good deal on a house at the right price, would you go for it? Or would you wait? I've heard lots of arguments. It's an investment, and you can't time the market. There's only so much land, prices will always go up. And many more...
Or, would you hold out until a specific date? In my situation, summer 2007.
After thinking about it, I've come to the conclusion that sometimes that saying opportunity comes once in a lifetime leads me to make decisions that are not always in my best interest. The fact is opportunity is always there, you just have to find it. I'm going to hold out. I can accept my decision should housing prices go up, but I think I would have a harder time accepting if I bought and prices went down.
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3 comments:
It depends on how long you intend to hold it. If you plan to stay for 10 years, you're probably good to go. If you think you'll turn it in 3-4 years, you probably shouldn't. The in between is the gray area that makes financial decisions so much fun. ;-)
That's an interesting way of viewing things. Are you more willing to watch prices rise as you sit on the sidelines, or bear price declines after you have bought. I think I am in the same camp as you on this one. It is more true in your case as you live rent free. If you were paying rent, it would be motivation to buy earlier.
Lamoneyguy, you bring up a good point too! Living rent-free does change things...but I do want my own place soon...don't get me wrong, living with family has its pros, but I do miss the sense of independence I had while living away.
FMF, I'm am planning long term (10+ years). I heard someone tell me once not to look at your home as an investment if you're going to live in it, rather it's a place to live. I guess that's based on the premise that you are not going to sell...And I think that makes sense.
But after thinking about it for awhile, the thought sort of shifted, even though it doesn't matter if I'm going to live there long term, why would I want to get in when the market is peaking? The problem is I don't know that! Man I wish someone sold a crystal ball.
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