Re: First-Time Home Buying
Posted: Sat Jan 07, 2017 11:12 am
We might be getting into another housing bubble... go to stockcharts.com and look at the index $$HPI. But it varies, market-to-market. San Francisco, Portland, Seattle? Bubble!!!
But, obviously you need a place to live... if buying is cheaper than renting, on a monthly cash flow basis, net of everything, then do it. And finance it so you're not badly upside-down if values go down by 25%. That is your stress-test. That might change how much house you buy. That $$HPI is 190 now, what if it went back to the 140-150 area in the next few years? We're going to have a recession someday. Yellen has not outlawed them.
But don't buy it if you're thinking of a house as an "investment". They're bad investments, unless you bad near the bottom and sell near the top.
Get a fixed-rate mortgage, don't get a floating POS. You want a steady budget.
But, obviously you need a place to live... if buying is cheaper than renting, on a monthly cash flow basis, net of everything, then do it. And finance it so you're not badly upside-down if values go down by 25%. That is your stress-test. That might change how much house you buy. That $$HPI is 190 now, what if it went back to the 140-150 area in the next few years? We're going to have a recession someday. Yellen has not outlawed them.
But don't buy it if you're thinking of a house as an "investment". They're bad investments, unless you bad near the bottom and sell near the top.
Get a fixed-rate mortgage, don't get a floating POS. You want a steady budget.