The Greatest Buying Opportunity of our Lifetimes?

Posted on February 27, 2010
Filed Under Real Estate Foreclosed |

Detroit, MI – With record drops in home prices (from their peaks) combined with record low interest rates, 2009 may go down in history as the best time to buy real estate in our lifetimes. 

 

Of course, many real estate agents ALWAYS say it’s a great time to buy real estate as their income depends on selling homes.  But, The Housing Affordability Index (HAI) chart here supports their claims this time.  It shows that nationally, this is the best time to buy a home since 1971, when this data started being tracked.  The index takes into account housing prices, mortgage rates and wage income to determine affordability for first time buyers with no home to sell.

 

The experts who publish the Case-Shiller Index are predicting that housing prices will continue to fall in 2009.  So many home buyers may be tempted to wait until housing prices bottom out before buying.

 

Two challenges with that line of thinking: 

 

1.)    Wages are expected to also fall due to rising unemployment.  As more and more workers are laid off, people will compete for the fewer remaining jobs, allowing employers to lower wages.  Mortgage rates will also increase at some point in response to all the bailout money the government is spending.  Both of these factors work against the benefits of falling housing prices.  So, there’s no way to predict where the index will go in the future.

 

2.)    Timing the bottom of the housing market is almost impossible.  Did you know when the housing market peaked?  None of the experts did.  So, it’s safe to assume no one’s going to be able to predict the bottom of the market until AFTER it’s rebounded.

 

So, what should a potential home buyer do? 

 

The best advice I can give a buyer is to make sure YOU know your budget and don’t spend every penny of savings to get into a home.  Then forget about timing the market and go buy a home.  Just be careful.

 

I’m always amazed that buyers come to me and are perfectly willing to let ME to tell them what THEY can AFFORD!  Folks, you should know your budget way BETTER than me!  All I, or any mortgage person, can do is tell you the MAXIMUM amount of trouble we can get you into.  The industry methods of determining your maximum amount, don’t even take into account how many children you have!  It’s common sense the more children you have the tighter your budget.  Homebuyers should determine a maximum monthly housing payment (including property taxes & insurance) their budget can comfortably support, BEFORE talking to a mortgage person.  If you feel you need help determining a solid budget, there are plenty of nonprofit organizations waiting to help you. 

 

With the uncertain job markets, the lending industry is requiring more homebuyers to have emergency reserves to qualify for a mortgage.  Again, some common sense is needed here.  Buying a home and living paycheck-to-paycheck is a recipe for disaster!  Unexpected things go wrong with homes all the time and cost money to fix.  If you buy a foreclosed home, you buy it as-is.  The greatest home inspector in the world can’t catch everything, nor should they be expected to.  Likewise, the best home warranty won’t cover everything.  So make sure you have some savings to fall back on if something breaks or if there’s a job layoff.

 

Nothing’s sadder in real estate than to see a foreclosed property get foreclosed on again. 

 

Today’s real estate market offers great opportunities.  Homebuyers need to hire the best qualified real estate agent and mortgage professional they can find, to help them minimize their chances of becoming another foreclosure statistic and instead, properly take advantage of the chance of a lifetime.

Drew Sygit
http://www.articlesbase.com/real-estate-articles/the-greatest-buying-opportunity-of-our-lifetimes-749018.html

Comments

2 Responses to “The Greatest Buying Opportunity of our Lifetimes?”

  1. MoBau on February 27th, 2010 4:47 am

    Philippine Islands- Help?
    We are having a debate in history class. We are pretending we are way back debating whether or not to buy the Philippine Islands. It is a debate and I am For Buying them. I can’t think of things to say when we debate it. The arguments are
    1. Pro- After the U.S. restores order and peace in the Philippines, we shall establish a democratic government there, allowing the Filipinos to manage their own affairs.
    1. Con- Americans should not interfere with the growth and development of the people living on the Philippine Islands.

    2. Pro- God is speaking to America. He is telling us to bring these people the light of christianity.
    2. Con- What kind of a God do you Believe in? The Christian God I believe in does not sanction the brutal and inhuman work of zealous, mislead imperialists who want to force a religious viewpoint on people by pointing rifles in their faces.

    3. Pro- Acquiring the Philippines-making these fertile islands a part of our growing American civilization-is a once-in-a-lifetime opportunity!
    3. Con- After a century of neglecting these islands, suddenly you greedy imperialists view the Philippines as a coveted economic prize the the U.S. must sieze.

    4. Pro- Once we make the Philippines a part of American territory, the door to the entire far east will be wide open to our vibrant, growing nation.
    4 Con- Proclaiming that the acquisition of the Philippines will "Open A Door" to the far east is dangerous and is misleading the American people.

    5. Pro- Annexing the Philippines will further demonstrate to the world that America has become a first-rate military power that intends to live up to its world-wide responsibilites.
    5. Con- What really increases a nation’s trade and really improves a nation’s relationships with other nations is not guns and battleships but is international reations brought about by the nations best merchants.

    6. Pro- This crucial moment in history demands that we Americans act now to annex the Philippines-islands that are rightly ours-or some other world powere assuredly will and American power in the Far East will wither away.
    6. Con- When imperialists express fears of losing our present influence in the far east, they are acting in a paranoid manner: actually their fears are groundless.

    7. Pro- It is now American "duty and destiny" to look beyond our shores to new lands, for American "destiny" no longer stops on our west coast; our "duty" extends across both major oceans.
    7. Con- The words "duty and destiny" are vague, emotional words, having rea meaning only when they are clearly defined as recommending a specific course of action for Americans to follow

    8. Pro- Americans must cast aside their self-centerdness and then take up the "white man’s burden"
    8. Con- The imperialists confuse the "white man’s burden" with the burdens and responsibilities of all mankind toward one another.

    If any one has any suggestions to help the Pro side that would be great. I am just in need of help with coming up with things to say to the pro. Thanks

  2. FredS on February 27th, 2010 9:49 am

    The US ended up with the Philippines in an unexpected and nearly accidental. It would have been irresponsible and insulting to simply give it back to Spain who we had just conquered, or allowed the mostly uneducated plantation colony to falter in fuedal conflict without first attempting to establish a stable government and economic infastructure. The Philippines would have certainly been an easy target or split apart by other asian or euorpean colonial powers had the USA not protected the fledging country as it developed. France probably would have claimed the Philippines as part of IndoChina, and stunted development by keeping the nation an illiterate agriculural plantation, which would have remained so also under Japanese rule.
    References :

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