Quote:
Originally posted by G Sharp
Just buy the damned house as long as you are sure that that is where you want to live for the next 15 years--fuck the economic rollercoaster.
I am beginning to like the last piece of advice..... what do you guys think?
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Sure.. if you don't mind thinking of an investment in a house as you would an investment in a new car.
The bottom line is there is more of a chance now than ever for you to lose money in a real estate investment. The market (especially in California) steadily went up because of the desire to live here because of high paying jobs.
Now many of those high paying jobs are gone, yet people are still stuck with their mortages that were based on their previous incomes.
I'm not sure how a real estate bubble would burst exactly... like if it would burst like the stock market did or not. But I know the area I am in has more than doubled in value over the past few years.... I would imagine it could easily give 80% of those gains back.
That could hurt a newbie home buyer pretty bad if you were buying all the house that you could afford & then your income changed.