Rent or Buy?

[daves87rs]

going on-what would you do?

A sliding housing market, heating bills pricer by the month, a recession looming (wait-I think it's already here)...

On the other hand-good prices....

I really want to get a house-BUT-I'm not getting a good feeling about it...(could be my local market)...

Would it be smarter to wait- or consider diving right in?

[Flybrian]

Judging by the Florida market, definitely rent unless you can pony up the cash. If that's the case, its a total buyers market. So many idiots got in over their heads with overvalued property. Though even ownership comes with risks here. The homestead exemption issue isn't resolved and you'll be lucky to get homeowner's insurance at all.

[daves87rs]

Judging by the Florida market, definitely rent unless you can pony up the cash. If that's the case, its a total buyers market. So many idiots got in over their heads with overvalued property. Though even ownership comes with risks here. The homestead exemption issue isn't resolved and you'll be lucky to get homeowner's insurance at all.

Yeah, more of the Michigan market here.

Lots of houses pretty cheap here.

Problem is there are no jobs around here...which makes it hard to buy a house.

I've been trying for a better job so that I could afford a nice house, and go back to school.......

Hopefully soon that will change....

[bobo]

Home prices are not going to go up anytime soon, especially in an economically depressed areas, so there's no rush for you to get anything. Wait a year or two while you save up more money.

[daves87rs]

Home prices are not going to go up anytime soon, especially in an economically depressed areas, so there's no rush for you to get anything. Wait a year or two while you save up more money.

So say renting would be a good idea?

Maybe something that includes heat? (and water)

[toesuf94]

A recession looming? Jobless rate nationally is 4.7%. Keep in mind that 3% of the population is UNEMPLOYABLE. Yes, some jobs do not pay the $100k that everyone thinks is what is owed them, and yes, not everywhere is working with those same numbers, I realize that.

Houses and interest rates are cheap right now. It is a buyer's market. People who jumped in to that ARM mortgage SCAM three years ago are now in way over thier heads due to higher APRs. People actually thought it was great to be paying interest only on thier loans. My buddy did it - he is now without the mega house and is stuck with $110k in debt!

Get yourself a nice conventional mortgage at 5%, and find a nice place that somebody HAS to take a bath on NOW. Heating? Wear a sweater.

[tmp]

Unless we have a perfect storm of earthquake, fires, floods, riots and OJ again, the prices in my neighborhood ain't gonna be very affordable any time soon...

[Z-06]

Yeah, more of the Michigan market here.

Lots of houses pretty cheap here.

Problem is there are no jobs around here...which makes it hard to buy a house.

I've been trying for a better job so that I could afford a nice house, and go back to school.......

Hopefully soon that will change....

Michigan market, Buy! I will explain later.

[daves87rs]

Michigan market, Buy! I will explain later.

Explain!

[K.C.]

I buy, because I have dogs and kids, and I like having a place thats my own. Caring for it and seeing it when I pull in the drive gives me some satisfaction.

[Z-06]

Sorry for taking long to reply.

Here are my reasons:

1. My Fiance just bought a Condo in Clinton Township. It is a two year old condo which was sold (brand new) for $165,000, she bought it for $124,000. The prices have been on decline steadily in Michigan for housing. On a secondary note, the lady who owned it worked for Toy, (Irony Heh?) and they were consilidating jobs into Ohio. A similar sized 2-bedroom 1600 sqft., two car garage condo in Orlando sells for nearly $200,000.

2. Michigan is one of the largest hit state in a bad way when it comes to housing. It has not seen speculative boom as bad as Florida or Arizona. Prices on an average are lower than median housing prices in United States. Thus even if the housing bubble collapses, Mi will not be hit bad.

3. The ratio of number of sellers to buyers is high, so it is a buyer's market.

4. If you compare renting to buying, depending on the amount you are going to spend it will not be worth a difference. In our case, a two bedroom apartment with no garage cost about $900. The mortgage and taxes came to $1,100.

5. As you might be aware, there are efforts from the politicians to make Detroit, Vegas of the east. (How much will it be successful, only time will tell but they are looking to diversify.) Options are also on the table to make it a tech center.

6. On the other side, the automakers might have seen the worst or pretty soon. I do not think there will be any more attrition of number of people. Blue collar jobs may leave, but I think, white collar jobs are bound to increase, if the state and the automakers are serious about keeping it in Detroit. I think the state is more to lose, if the Big 3 go South.

7. There was an article in Yahoo, which I read like a week ago (I cannot find it now), which said how the real estate is ultra cheap, and people are buying two or three houses and renting them out. Foreclosures are very high, and thus chances of getting one damn cheap house is good.

This is my theory, I may be wrong, but just an insight for you to research on and make your decision. Let me know how that goes. Good Luck!

[Oracle of Delphi]

Detroit the Vegas of the East? All I can say is Atlantic City would dispute that! :rotflmao: Besides, Detroit is not in the East, it's in the Mid-West technically.

Edited November 4, 2007 by Pontiac Custom-S

[Chevy Nick]

I vote for renting.