Good time to buy houses?
- Thread starter studd muffin
- Start date
Bottom line is, noone will give them a loan in this economy unless they can handle it. A large part of why the housing situation took a dump is because banks were giving money to people who they probably should not have. If your parents are approved, I dont think you need to worry. I just got approved for a home loan and they looked into my finances and will again before any deals close.
BTW current interest rate for a VA Loan in the amount I got approved is 4.25% with zero down.
BTW current interest rate for a VA Loan in the amount I got approved is 4.25% with zero down.
SemperFish;4493856; said:
Exactly... Does the OP even know what the financial situation of his parents is??
Here in Canada (Winnipeg) I was able to get 2.25%, but had 10K down.
Just some food for thought....my opinion is that the money-train to get rich on real estate has come and gone, and it wont be back again. Real estate prices across the country ballooned to unrealistic levels. Home prices were NOT inline with a family's income. The only reason it lasted so long was due to all these subprime exotic loans.
The market crash we all experienced was the "re-setting" of home prices to what people actually make. A large portion of families out there simply cannot afford a $300K+ mortgage, and like I said, the only reason they thought they could afford it was because of these weird loans.
If your parents are doing this to make a quick buck, I would re-think it. I don't think home prices will ever go back to what they were, the ever-changing and stricter loan requirements will not allow prices to increase like they did before. The less number of people qualify for a loan, the lower home prices will be. It's the law of supply and demand.
But if they're simply doing it to have a second home on hand, and maybe a future place for the kids, then now is as good as a time as it will probably be. Renting out one of the homes for now will help cover most, if not all of the mortgage, depending on your location.
In conclusion, if they're only doing it to double their profits in a few years, I would hold off.
The market crash we all experienced was the "re-setting" of home prices to what people actually make. A large portion of families out there simply cannot afford a $300K+ mortgage, and like I said, the only reason they thought they could afford it was because of these weird loans.
If your parents are doing this to make a quick buck, I would re-think it. I don't think home prices will ever go back to what they were, the ever-changing and stricter loan requirements will not allow prices to increase like they did before. The less number of people qualify for a loan, the lower home prices will be. It's the law of supply and demand.
But if they're simply doing it to have a second home on hand, and maybe a future place for the kids, then now is as good as a time as it will probably be. Renting out one of the homes for now will help cover most, if not all of the mortgage, depending on your location.
In conclusion, if they're only doing it to double their profits in a few years, I would hold off.
jcardona1;4493881; said:Just some food for thought....my opinion is that the money-train to get rich on real estate has come and gone, and it wont be back again. Real estate prices across the country ballooned to unrealistic levels. Home prices were NOT inline with a family's income. The only reason it lasted so long was due to all these subprime exotic loans.
The market crash we all experienced was the "re-setting" of home prices to what people actually make. A large portion of families out there simply cannot afford a $300K+ mortgage, and like I said, the only reason they thought they could afford it was because of these weird loans.
If your parents are doing this to make a quick buck, I would re-think it. I don't think home prices will ever go back to what they were, the ever-changing and stricter loan requirements will not allow prices to increase like they did before. The less number of people qualify for a loan, the lower home prices will be. It's the law of supply and demand.
But if they're simply doing it to have a second home on hand, and maybe a future place for the kids, then now is as good as a time as it will probably be. Renting out one of the homes for now will help cover most, if not all of the mortgage, depending on your location.
In conclusion, if they're only doing it to double their profits in a few years, I would hold off.
They are not trying to do it for profit. They want to own two house so they can pass it down to my brother and I. Thats what my dad said. They have been trying to find a newly built house for at least 3 years now. They havent been able to because of the bad economy. They want to take advantage of the recession. They plan on renting out the house when they buy a new one.
Half of whats said is wrong, but ok. Let mom and dad make decisions and dont listen to mfk
The market will go back up, not as high, yes, but still up. Dont act like all the money is gone, theres still so much of it out there. As long as obama stops killing the average american then things can improve greatly. Few very situations occur were you would buy a house right now hoping to double the investment in two years, im sure his parents do not have that intended.
The market will go back up, not as high, yes, but still up. Dont act like all the money is gone, theres still so much of it out there. As long as obama stops killing the average american then things can improve greatly. Few very situations occur were you would buy a house right now hoping to double the investment in two years, im sure his parents do not have that intended.
Yeah, seems like a smart move I say. Of course, prices may drop even more so it's just a gamble. According to everybody, it's always a 'good time to buy', that is, until you actually buy. Then you see you should have waitedstudd muffin;4493894;4493894 said:
Based on the cars your parents want, it sounds like money isn't an issue. I say go for it
geronimo69;4493880; said:
Yes I know about my parents financial situation. They tell me about it most of the time.
I'm sure he meant having the property tax & insurance bundled up with the mortgage payment, an escrow account.irishfan;4493839;4493839 said:
jcardona1;4493905; said:Yeah, seems like a smart move I say. Of course, prices may drop even more so it's just a gamble. According to everybody, it's always a 'good time to buy', that is, until you actually buy. Then you see you should have waited
Based on the cars your parents want, it sounds like money isn't an issue. I say go for it
My dad is still looking for his Z4 while looking for a house 