Good time to buy houses?

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studd muffin

studd muffin

Jack Dempsey
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Nov 16, 2009
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Hi everyone. My parents are thinking of buying a second house and I am worry if they do they might lose everything to the bank. I am concerned because almost everyone in my family who owns a house lost their house even though they were making really good money. My uncle who is a police officer, he makes $90,000+ a year and still he is losing his house. My mom and dad said it is a good time to invest in a house. They have been thinking about buying a new house for four years now. My mom said that the bank is looking for people who can pay for two or more houses at the same time with a good income. Its one of the qualification now to get a new house.

EDIT: My parents make enough to pay for two houses so they qualify to buy another.

What do you guys think? Do you guys think im over thinking? :grinno:
 
This all depends on where you are located. My father and wife both do real estate and loans. From what I gather it is not so much difficult to get a house as it is to get a loan. Alot of people lost their houses because of their rates/payments changing. In alot of places now is a great time to get a house if you can get financed. Eventually the market will bounce back and you might make a load of money. Ive started dealing with a realtor in NC and the market seems good. Im no expert though so others probably have better scoop on this.
Im more of a shoot people and blow things up kinda guy.
 
It's all about interest rates. Right now they are at an all time low, so buying a house ( if you have the $$ ) is an awesome idea. For example, if they buy a house for $100K right now, they might get an interest rate ( to borrow for a mortgage ) low like 3%. In 5 years, that same house might be worth the same ( probably more), but the bank might charge 8%. The bank lowers these rates so that people WILL BUY MORE. If your parents can afford 2, tell them to do it.
 
SemperFish;4493281; said:
This all depends on where you are located. My father and wife both do real estate and loans. From what I gather it is not so much difficult to get a house as it is to get a loan. Alot of people lost their houses because of their rates/payments changing. In alot of places now is a great time to get a house if you can get financed. Eventually the market will bounce back and you might make a load of money. Ive started dealing with a realtor in NC and the market seems good. Im no expert though so others probably have better scoop on this.
Im more of a shoot people and blow things up kinda guy.
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Im in California. That makes me even more scared cause California has a lot of foreclosure.
 
I say buy low and sell high.

Home prices have dropped like a rock and 30 year mortgages are below 5%.
Now is a great time to buy real estate in the USA. I'm not saying though that home prices have bottomed out. They may drop some more. However nobody is smart enough to guess when the bottom will be. As with most investments their prices are driven by two primal emotions: greed and fear.

Warren Buffet, the billionaire, once said: Buy when fear is at its worst and sell when greed is at it's peak. That's not an exact quote but I think it's pretty close.

I wish your parents the best with their investment plans.
 
studd muffin;4493291; said:
Im in California. That makes me even more scared cause California has a lot of foreclosure.
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Thats exactly why its a good time to buy and why its more difficult to get loan approval. On the flip side of that, If they are approved by a lender then I dont think you need to worry about them. The bank is as concerned as you are and have checked them out.
 
your my peoples so i understand your situation a little better. they probably wanna buy and rent out to family or relatives which is a good idea especially where you live

from what little I know, I think they will need like 20% down and prove that they will have a tenant to stay at one of the homes. and just because they are in cali where there are a lot of forclosures, that has nothing to do with your parents. if they got high 700 to 800+ credit score, it don't matter

if they have the 20% down and can get approved, it's a great time to buy as far as what the costs are going these days. I'm not sure what the % is at at the moment but homes are really cheap now in Cali bro. If I could, I'd buy a second also

only thing is, make sure they do 30 year fixed at 5% at the most! and have them stick the property tax to the mortgage!
 
GudEnuf;4493292; said:
I say buy low and sell high.

Home prices have dropped like a rock and 30 year mortgages are below 5%.
Now is a great time to buy real estate in the USA. I'm not saying though that home prices have bottomed out. They may drop some more. However nobody is smart enough to guess when the bottom will be. As with most investments their prices are driven by two primal emotions: greed and fear.

Warren Buffet, the billionaire, once said: Buy when fear is at its worst and sell when greed is at it's peak. That's not an exact quote but I think it's pretty close.

I wish your parents the best with their investment plans.
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Thank You :)

svang55;4493707; said:
your my peoples so i understand your situation a little better. they probably wanna buy and rent out to family or relatives which is a good idea especially where you live

from what little I know, I think they will need like 20% down and prove that they will have a tenant to stay at one of the homes. and just because they are in cali where there are a lot of forclosures, that has nothing to do with your parents. if they got high 700 to 800+ credit score, it don't matter

if they have the 20% down and can get approved, it's a great time to buy as far as what the costs are going these days. I'm not sure what the % is at at the moment but homes are really cheap now in Cali bro. If I could, I'd buy a second also

only thing is, make sure they do 30 year fixed at 5% at the most! and have them stick the property tax to the mortgage!
Click to expand...

My parents are going to rent the house they currently own and move into the new one they are going to buy. Maybe my grandma and grandpa might move back.
 
Your parents should have some sort of financial advisor..they would probably be the one to contact. Not sure bout sticking the property tax to the mortgage comment either. Need to have a trusted fin advisor or realtor in this situation
 
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