B.C.

5/1 Arm is Ok. There is time to re-fi i the next 60 months, Those who are on a 3/1 Arm is still Ok, but playing with Fire. Those on a 2/28Arm or subprime, is going to be hurting.

BC

tool462

Don't have the money for a rental place in SoCal right now. Given how expensive properties are, I doubt I could rent a place for enough to cover the mortgage. If I already owned one, however, I would be sittin' pretty . Depending on how much of a price "correction" there is in the real estate market, I may pick up a couple places in the next few years. Doesn't make sense locally, right now, though.

sunnysd

There are ways to make money with up and down market. I am actively looking for rental/investment properties in the SD county. We can get the numbers to work for us. I have done OK for myself, friends and relatives.

I am a Tech Mgr during the day. I am also a licensed Reator. Long story. Perhaps we can chat at our gatherings sometimes.

meth

hey, so i don't know jack about this stuff.

but here goes:

if you bought a house start of this year, and you took advantage of the 1st time buyer/no down payment scenario, and you are later unable to keep making payments on your home and are forced to sell, how much would you have to put down on your next house should you choose to buy one?

B.C.

Depends. You can always get a 80/20 loan. That 1st time home buyer act, really does no good unless you have low income, then they will assist you with a down, or reductiuon in interest rates. Any lender will give you 100%, once, and all the time if they really want your business.

If you can't make your payments, then you're heading into forclosure and bad credit. If you don't have a 680 or higher, (B papers) then you won't even qualify for a good rate, and thus can't buy a home.

B.C.

Wouldn't it be better to be a full time realtor than full time tech? My buddies are banking right now on 2.5-3% commissions. (They are brokers not agents)

They are each closing, 3-4 a month, @ 400-800K a condo/home @ 3 % for the last 3 years. Too bad they are all 1099, but they do drive AMG SL's and big homes to off set the taxes.


BC

sunnysd

I was in real estate full time for a long time. The money is there and it's pretty good. Just that I love the high tech stuff and went back. Needless to say, it's a big financial hit

The Raptor

MS in Urban Land Economics here and commercial and industrial real estate transactions and refinancing drive my business. The consensus among the people I deal with is that it was just hiccup. Fundamental demand is strong, at least in the commercial and industrial arena.

JSR_AP2

All the info thus far is far beyond my knowledge in real estate and home ownership, but just a quick question (may be too simple, but...)
So, assuming this drop is an indication of the direction of the home market, what would it look like by the end of the year? I'm hoping to be able to be a home owner by the end of this year, but the prices have been difficult for me. Thanks (and again, sorry if the question if too simplistic or naive).

B.C.

Noone will know the answer, but as we know from past trends that once Interest rates hikes, house prices falls. One might say that it's the same as buyign a home @ 550K with 6% vs 400K with 7%. The payment might be the same, but the chances of the 5-10% increase in property value @ 400K is much better than something @ 500K.

Only time will tell. But remember, if everyone knows, then it's too late. Now is time to buy a home w/ intentions to be there long term, not short term, or flipping a house.

BC