Let's Speculate....

[jamrok 0]

Do you think this is something that a lot of people might start doing? Moving into rentals and waiting?

If so the 'correction' is going to take even longer.....

Speaking with my Banker cap on; let's say you have to wait one year with your money in a CD

or even two years with your money growing at 5% per year PLUS the savings that you will

realise at the 'corrected' price that you will buy at for waiting.....Don't you see a 'win win' situation

here. As someone correctly mentioned above....correction will most likely take prices back maybe

4 or 5 years back.

[diadromous mermaid 36]

I'm wondering about the gain in selling (unless one has no choice, that is) when real estate prices have dropped, in this sluggish market. While a homeowner might be able to place equity in CDs or smart investments to earn some interest, possibly more than the requisite potential appreciation, in view of the fact that the selling price might be driven down, what is the purpose of selling?

[rebeccajo 14]

I'm wondering about the gain in selling (unless one has no choice, that is) when real estate prices have dropped, in this sluggish market. While a homeowner might be able to place equity in CDs or smart investments to earn some interest, possibly more than the requisite potential appreciation, in view of the fact that the selling price might be driven down, what is the purpose of selling?

The quote in bold is us. Barring improved employment, there will be a cash flow change in our household next summer.

[Nikita2Charles 31]

A very interesting website called

ZILLOW.COM

it shows you the comparables of your house, and your neighboors, check it out.

[w¡n9Nµ7 §£@¥€r 123]

A very interesting website called

ZILLOW.COM

it shows you the comparables of your house, and your neighboors, check it out.

Charles,

Excellent site. Thanks.

[PlatyPius 5]

During the time you are parking your money in another investment, will the return compensate for the rent you will paying somewhere else. The long term outlook on the market right now is 5 years before we see a turn around. But that is also dependent on your area.

As a Banking professional I totally agree with Steven. Rent and wait. The market is in a state

of correction at the moment. I also have my house on the Market, valued at $749, 000 and has slashed

my price to $425K and still no action. I have enclosed a photo of my house, where can one find such a house in Florida for $425, 000 yet no buyers?

That's a $225,000 - $300,000 house here in Indiana, depending on location. There is a similar one in my town that is still unsold at $230,000.

[JenT 0]

During the time you are parking your money in another investment, will the return compensate for the rent you will paying somewhere else. The long term outlook on the market right now is 5 years before we see a turn around. But that is also dependent on your area.

As a Banking professional I totally agree with Steven. Rent and wait. The market is in a state

of correction at the moment. I also have my house on the Market, valued at $749, 000 and has slashed

my price to $425K and still no action. I have enclosed a photo of my house, where can one find such a house in Florida for $425, 000 yet no buyers?

That's a $225,000 - $300,000 house here in Indiana, depending on location. There is a similar one in my town that is still unsold at $230,000.

I was going to post the same thing for the area of Michigan I live in....

[Fandango 1,439]

Your alternate investment should cover all rents lost for the year......oh, and zillow's wrong everyone!

At least in my area it is

[jamrok 0]

Your alternate investment should cover all rents lost for the year......oh, and zillow's wrong everyone!

At least in my area it is

LisaD you are so correct.....Zillow is useless....it has my house valued at $1.5 Mill when actually

it's worth only $740,000......their values are usually unrealistically high. Bank of America has a better

valuation system...more in line with today's market.

[rebeccajo 14]

Your alternate investment should cover all rents lost for the year......oh, and zillow's wrong everyone!

At least in my area it is

I take that to mean that you're not keen on the renting vs. buying thing?

I haven't looked at zillow.com yet, but I'm usually dubious of most web-based things like that. Kind of like looking up law on the web.....

Just tried it and it says there's not enough 'transactional data' so it's taking the tax valuation. What did I expect? It's just a dumb data-tracker.

Edited October 2, 2006 by rebeccajo

[Fandango 1,439]

Your alternate investment should cover all rents lost for the year......oh, and zillow's wrong everyone!

At least in my area it is

I take that to mean that you're not keen on the renting vs. buying thing?

I haven't looked at zillow.com yet, but I'm usually dubious of most web-based things like that. Kind of like looking up law on the web.....

Just tried it and it says there's not enough 'transactional data' so it's taking the tax valuation. What did I expect? It's just a dumb data-tracker.

I never really think renting is good for a few reasons. Now please understand these are my personal opinions which I've had from even before I came into this industry

from a financial standpoint, I really don't think that you can invest in something that can be worth the money you lose. Think of it this way: you are living in your investment. You are not having to invest all your cash flow up front, but have a bank loan you the money for this investment. Then you can also receive tax deductions on your investment which you haven't even paid for yet. Plus, interest rates are still awfully low...what happens if you decide to buy in a year or two, but interest has jumped to 10%? Do I have a crystal ball? Of course not, but at the end of the day, it is a possibility.

Also if you're pulling a lot of equity from this old house & walking away with a good bit of dosh, then you have some buying power right now which could allow you the possibility of making a strong yet not-quite asking price offer to another seller.

When you rent, you're pishing away that rent money....sure you can tie up your money in a pawltry money market/cd/stock market etc...but I don't think the return justifies the time being held up, or under some instances, the risk. You can never lose with real estate...sure prices have adjusted lately, but it's still a pretty ok market. The house is not going to lose great value (speaking in the grander scheme of things) Plus the investing that you're doing to counteract not buying is being paid in addition to a monthly rent.

However, if there's a possibility that you may move to Ireland within the next year or so, then perhaps it'll be worth it to be unencumbered & be able to move within a relatively short period of time. It's not the best financial decision, but sometimes that has to be passed up in order to do what's more convenient.

Good luck Becs