Quote:
Originally Posted by Jr
Greg,
Good point. We just sold our home, and we are looking to purchase another home. Southern California prices are high right now, but if another recession is close, I'll rent till then.
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Once you sell - the clock is ticking on how long you have to reinvest the proceeds into a house of greater value. If you wait - The problem with that is that if interest rates rise you're going to be paying more per month every single month as long as you keep that mortgage. Since we don't know how much you're financing - it's hard to judge what that might look like.
I was being somewhat facetious about the house crystal ball.... but I was serious about looking longer term. One or two years is pretty short term compared to a 30 year mortgage.
I own a couple of apartment complexes -- I can tell you that we've jacked the rents WAY up.... like 50% UP.... I would not want to have to be a renter.
I also think it depends on what real estate market you're in. Seattle is on fire... Sun Valley is "improving".... Like Vegas just said -- that market jumped 35%... but it was also one of the most depressed. As the job market improves -- and people begin to see interest rates rising - you might see more buyers moving off the sidelines and jumping to buy before they're priced out... or it could have a damping effect... that's just pure guessing and we won't know that until it happens. Either way -- if you're going to live in the house for 10 years... today's price shouldn't really matter.... and the one prediction I would make - is that you'll likely NEVER see these interest rates in your lifetime.