Is now a good time to buy a house?

According to Dave Ramsey, radio talk show host and author that teaches financial independence, now is the best time E V E R to buy a house, providing you don't already have massive debt. The less debt you have, the better.

There is no rush. Im guessing housing prices will go down more because they will have to raise interest rates to keep inflation from going out of the atmosphere. At best they will hover at where they are but I do think we have further to go so there is no rush to buy a new place. Honestly Id save save save so when it is time you have little to no mortgage. I think we Americans have to fight the banks the only way we can and that is to not use them. They have ruined this country and the government is helping them do it. If all Americans paid for stuff when they had the money then we would have the banks by the balls and not the other way around. Keep in mind Japans interest rates are low because no one wants to borrow over there they BEG people to take money.

Originally posted by destiny-fate
My own personal opinion would be if you can afford to - buy rural. A small property that will enable you to become self sufficient

I dont think house prices will be rising in a hurry.

[edit on 14-10-2008 by destiny-fate]

I agree! very good idea

one thing to add

With the bailout and possibly if the bailout "works" (we will need to bailout the bailout) and then , the bond market will really be revolting ...this would lead to higher intrest rates for those taking out new mortgages.

to protect yourself you could take a bit of money and put it into PHYSICAL gold or silver

because the bond market is the largest market in the world (much larger than the stock market) to continue this line of thinking currently there are two "safe havens" during times of financial market "stress"

1. the GIGANTIC short term bond market

2.the smaller gold and silver markets

should the perceived safe haven of the bond market stop , lot's of that money would go into gold and silver (phsycial)

the huge pool of global $ starts searching for higher returns (or safer returns to maintain there $) so ... funds sometimes begin flowing from traditional investments into smaller asset classes.

A look into the OIL price between 2002-2007 would show you what happens when ton's of money flow's into a "relatively" small market. the value of the asset mulitply's!!!

Originally posted by cpdaman

this would lead to higher intrest rates for those taking out new mortgages.

So when interest rates go higher, house prices will continue to decrease right.

But what if the banks start lending to unqualified people again, won't that drive prices up again?

In essence isn't that what they are trying to do?

Get the banks to start lending money again?

What if people start finding jobs again and inflation drives up wages, won't that also cause house prices to rise?

If they really wanted to fix this mess they would start lending money to poor unemployed people with poor credit and increase government welfare checks and subsidy programs so that people could afford to live comfortably.

They could also decrease the value of the dollar by increasing the money supply and cause people who have business raise thier prices.

I'm really not sure they want to fix the economy though. i think their just messing with everyones heads.

Lot's of moody people floating around these days. (Depressed, Euphoric, suicidal, disgusted, confused, afraid, etc)

[edit on 15-10-2008 by In nothing we trust]

reply to post by In nothing we trust


Why would you buy a house in the middle of an equity deflation?

How can you even begin to justify that?

Originally posted by Rockpuck

Why would you buy a house in the middle of an equity deflation?

How can you even begin to justify that?

Because before property prices goto zero we'll have a revolution / currency changeover / civil war / bank holiday / Mortage payment holiday/ Equity writedown and there is a chance that I might get to keep the property when the system collapses?

And it is uncertain what kind of local government or system will arise out of the ashes and I don't want to live on the street, until a new local banking sytem is created (It could be years before there is any semblance of normalcy).


[edit on 15-10-2008 by In nothing we trust]

reply to post by In nothing we trust


...

I don't know if you ever studied histories.. but the only time anyone ever got land for free is when the Lords they conquered for had the generosity or good senses to hand that land out in payment..

Even during the greatest of great depressions.. mortgages .. rents and payments do not disappear..

Originally posted by Rockpuck

Even during the greatest of great depressions.. mortgages .. rents and payments do not disappear..

The loans might get written down though and the banks might be willing to accept less. Especially if people's incomes start to decrease and they can show that they can no longer make the payments.

reply to post by In nothing we trust


If they cannot make the payments, they get kicked out? .. It really is that simple..

A "write down" .. is taking a security or asset that is not preforming and saying that in the past it was actually lower, and in the future it will not preform .. thus writing it down as a loss...

That is what Mr bushy would call a "bad debt" ..

But you get kicked out either way...

Besides, unless you got a good LTV down payment and perfect credit.. and even then it's unlikely... you are not getting a loan anyways lol.

Originally posted by Rockpuck
reply to post by In nothing we trust

 

If they cannot make the payments, they get kicked out? .. It really is that simple..

If only it was that simple. No I think we might be get to point where they stop evicting people nationwide. You might get to live there for free.

Cook County Sheriff Suspends Evictions from Forclosure
www.abovetopsecret.com...

reply to post by In nothing we trust


.....no not at all if you actually read the article he stopped the evictions of renters from rented property when the bank never gave anyone a notice the land lord was in foreclosure.



Always read the articles of a thread on ATS .. that I have learned.