Does a $185K mortgage cost only $800/mo.? That doesn't sound right. I'm thinking it should be closer to $1,200 or so. Add in property tax, association dues, maintenance, etc., and I doubt you'll do better than breaking even with renting it out for $1,500/mo. What happens if you lose a tenant? Are you going to be screwed paying two mortgages? I also think your appreciation estimates are way high. This isn't a good idea, IMHO.

 

Slightly OT: when's the best time to buy. 2008? Or is it going to be more of a buyers market in '09?

 

The market is predicted to start coming back up Mid 2009. Once the elections go down and the market stabilizes...

Just keep an eye on the area that you are interested in buying. Right now you could probably offer 10% below the already low asking price and probably get the house you want.

 

Tell that the couple who owns the house I put an offer on yesterday. I asked for $20k (about 7%) off, and they countered with $1,800 off.


Go pound sand, idiots.


It was a rehab they bought on Dec-31 for $200k, cleaned it up a bit and put in a new HW floor, and now they want $260k.


Oh, and I didn't have any contingencies in my offer, either.

 

Wow...Can't believe they'd say no. Prediction: They'll be kicking themselves when people start lowballing em at $225K and they can't get any more. Let em make a few mortgage payments and see how their tune changes.

 

Their own realtor let it slip at an open house that she thought the house was listed $10k too high. I forgot to mention, they wanted a close at the end of March; we said end of May. We went back to them with $245k, April close (we have a condo lease until July 30th,) and I don't think they'll come that low.....yet.

We'll see if they come calling at the end of say, March.

 

Also I was reading somewhere, that interest rates will go up in the near future and even if house prices go down a couple percent that, you're better off buying now.

I think, however that house prices still haven't hit bottom, and won't do so until the end of the year. I'm assuming that the market with "go back to normal" and correct itself 99%. It probably won't.

 

A decrease in the price of homes is a result of the market correcting itself. I foresee the bust continuing into 2009, but it certainly won't correct 99%. That would mean massive losses for many home owners instead of the 20-25% that will still leave prices someone inflated.