Home buying market

[Savage Jav]

Definitely going to be way off the usual top with this one but here goes. I've been looking into buying a home for a bit now but with covid/market boom/rising interest rates I figured it wasn't going to happen for a while (single guy no wife and kids so I don't mind renting). Recently found someone who is willing to take a VA loan on the house, I like the house, and it's in a decent part of town.

I'm curious if anyone thinks interest rates will come down in which case I should wait or snatch it up while I can.

I think I would probably sell off a few of my firearms I don't shoot as much just to have extra cash on hand for the move and other home costs. From talking to some other Vets VA loans are pretty good and take care of any up-front expenses but other home costs can come into play. Not opposed to liquidating a few but just something I'm thinking about.

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[SonicBlue03]

Rates are on the way up, so don't expect low rates for another few years. Although it's very possible the housing bubble is about to crash down, so pay attention to how much it's gone up over the past couple years (estimate - pay attention to the price per sq ft in the area and look at the trends) to try and avoid ending up underwater.

 

[Savage Jav]

Rates are on the way up, so don't expect low rates for another few years. Although it's very possible the housing bubble is about to crash down, so pay attention to how much it's gone up over the past couple years (estimate - pay attention to the price per sq ft in the area and look at the trends) to try and avoid ending up underwater.

I did my research on that. The seller isn't offering outrageous numbers

 

[slimmer13]

If I knew the market would crash, I'd cash out on my equity and buy when it does. The problem is nobody knows where the top is or how long it will last. Except maybe Michael Burry. Maybe ask him.

 

[SonicBlue03]

Sounds like you're on the right path for your homework then. Next will be paying attention to taxation in your county, utilities and their fees and the like. Garbage, sewer, water, gas, electric. Those are areas that often bite the new homeowner.

 

[Alexx1401]

I did my research on that. The seller isn't offering outrageous numbers

If you really like it and can get a rate of a few percent? Can't really hurt to take it with caution. Fed has been giving money out for free for many years. Inflation is now at new highs. Sooner or later they are going to have to try to pull some of that cash back so rates go up. The market this hot always leads to a crash. As others mentioned no one knows for sure just when, it will happen. As long as you can afford to keep the home after the next crash and the rate is fixed? You are fairly safe.

 

[Bam]

I'd wait if you can.

People have racked up record credit card debt the last 2 two years, largest credit balance increase was in 4th qtr 2021. And bought cars they couldn't afford, taking out 7-10 year loans. And bought houses they couldn't afford.

We won't have ARM mortgages fueling the fire this time, but the bubble is real and with interests going up, it'll pop eventually,

 

[bradsteen]

My parents have been in the mortgage business for 40+ years. They literally threw a party when rates went below 12% because it was the lowest they had ever seen (90s, I think). They told me interest rates will be rising by several points this year as a result of inflation, and it's only going to go up from there. Lock it in while you can, because it won't be this good of a rate for long.

 

[Longwalkhome]

You will be completing with Blackrock when you bid now.

 

[Savage Jav]

If you really like it and can get a rate of a few percent? Can't really hurt to take it with caution. Fed has been giving money out for free for many years. Inflation is now at new highs. Sooner or later they are going to have to try to pull some of that cash back so rates go up. The market this hot always leads to a crash. As others mentioned no one knows for sure just when, it will happen. As long as you can afford to keep the home after the next crash and the rate is fixed? You are fairly safe.

I think I can but gotta be cautious with stuff like this

 

[Alexx1401]

I think I can but gotta be cautious with stuff like this

YEP! If you are renting now you have to weigh that with buying. The rent is gone each month. If you buy you are at least investing in something. Comes with LOT's of down sides too like when something breaks its out of your wallet and such. If the price looks like you could hang onto the place when the next crash hits you can be good. Market will crash, but then it will also come back. Only real harm is if you for some reason have to get out while the market is in the tank. So you have to short sell. ALL investment is risk. All in how much risk you are comfortable with.

 

[Savage Jav]

YEP! If you are renting now you have to weigh that with buying. The rent is gone each month. If you buy you are at least investing in something. Comes with LOT's of down sides too like when something breaks its out of your wallet and such. If the price looks like you could hang onto the place when the next crash hits you can be good. Market will crash, but then it will also come back. Only real harm is if you for some reason have to get out while the market is in the tank. So you have to short sell. ALL investment is risk. All in how much risk you are comfortable with.

Very true. Ive also considered that I can rent it out down the road if I move or even the extra rooms. One of the benefits to being single.

 

[Alexx1401]

Very true. Ive also considered that I can rent it out down the road if I move or even the extra rooms. One of the benefits to being single.

Now THAT, I would be REAL careful with. A LOT of people lost everything when lets go Brandon pushed for free rent for all. Several states jumped into the game too. Told those who owned a home they could no longer evict those who did not pay but of course had to pay the banks. Rental property is SUPER high risk. Not saying don't do it. Just make sure you know how much risk you are taking on.

 

[Savage Jav]

Now THAT, I would be REAL careful with. A LOT of people lost everything when lets go Brandon pushed for free rent for all. Several states jumped into the game too. Told those who owned a home they could no longer evict those who did not pay but of course had to pay the banks. Rental property is SUPER high risk. Not saying don't do it. Just make sure you know how much risk you are taking on.

Definitely something to consider. I believe it comes back to finding decent tenants.

 

[joshkk]

Interest rates definitely aren't coming down for the near future... commercial rates for home buyers have already gone up a percent or so this year and are likely to go up even more over the coming months.

I've talked to a number of realtors about whether the high home prices is a bubble and none of the people I talked to think so, they think it's just an upwards reset (largely driven by profiteering wall-street investment firms) that is fundamentally going to stay on an upwards trajectory.

Experts say that by the 2030s, million dollar homes will me the norm:

Million-dollar homes will be the nationwide norm sooner than you think

When you factor in the historical trajectory of the housing market, million-dollar homes becoming the norm in coming decades looks all but certain.

fortune.com

 

[Alexx1401]

Interest rates definitely aren't coming down for the near future... commercial rates for home buyers have already gone up a percent or so this year and are likely to go up even more over the coming months.

I've talked to a number of realtors about whether the high home prices is a bubble and none of the people I talked to think so, they think it's just an upwards reset (largely driven by profiteering wall-street investment firms) that is fundamentally going to stay on an upwards trajectory.

Experts say that by the 2030s, million dollar homes will me the norm:

Million-dollar homes will be the nationwide norm sooner than you think

When you factor in the historical trajectory of the housing market, million-dollar homes becoming the norm in coming decades looks all but certain.

fortune.com

I am slightly suspicious of listening to this coming from people who make their living trying to get me to buy from them. The same people were saying the exact same thing until the day before it all crashed last time. What else are they going to say? Don't buy a home from us now? If million dollar homes become the norm there sure as hell will be a LOT fewer home owners unless they want to offer 80 year mortgages.

 

[joshkk]

I am slightly suspicious of listening to this coming from people who make their living trying to get me to buy from them.

Totally, me too... AND, my longtime realtor has been one of the greatest allies I've ever had, is someone I trust deeply, and also trust to have a good sense about these things.

 

[Savage Jav]

Guess the question is now what guns do I liquidate

 

[ilikegunspdx]

Depends on location. If u are buying around Portland I don't care what the deal is I would say it's a mistake. Just my opinion. Houses in this area are about $700kish minimum and crime and homeless make it seem similar to a third world country. Quality of life is a factor.

 

[SonicBlue03]

Guess the question is now what guns do I liquidate

Here's how that goes:
You can post a list here.
Whatever people offer you for any particular item on this board, assume they're offering about half of what it's actually worth
Then take it to GunBroker, compare, and sell for what you want to get out of it.