 When the real estate market goes down, will people lose money? |
I live in southern California, for the past few years home prices have skyrocketed.
Recently I noticed houses are selling slower and the prices are going down.
Does this mean ... |
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 What are renters rights? |
| After giving my landlord a letter to make repairs he had ignored, he in return got mad and came over with a new lease with a higher amount of rent to pay and making us responsible for all the repairs ... |
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 Problem Landlord, please help? |
| I have recently moved out of my rented flat. The landlord has advised me that I own him one months rent. I have disputed this and am waiting for my bank statements to confirm this (I am unwilling to ... |
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 Is it necessary for a first time buyer to hire a real estate broker? |
| I already have access to MLS- do i really need a broker? Granted, there is a lot of confusing paperwork but cant i have a real estate friend to look it over for me. And doesnt it seem like a selling ... |
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 How to find a loan shark? |
| I need $5000.00 and have tried conventional methods. I am in serious need of help.... |
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 Can a landlord keep a security deposit if you decide to NOT move into the apartment? |
| If you were to pay a landlord a deposit with the intention of moving into an apartment, but then back out, and the landlord then rents out the apartment to someone else, can the landlord legally keep ... |
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 I don't understand lease with purchase option. Can someone explain this to me? |
| We have received a Lease with Purchase Option contract from the lady next door for her house. I'm not understanding what several things on it mean. HELP!!!. If anyone with info on these can ... |
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 Has anyone had their house foreclose due to the current housing market? |
| I bought my home two years ago, when the market was hot. I was in a two year fixed loan. However, the market fell and now the value of my home is upside down and I can't refinance. It went up ... |
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 If the media would back off, do you think the real estate market might rebound? |
Additional Details
I know they didnt create the slump, but they seem to focus only on the negative and frighten people from buying, like telling them that the prices are going to keep ... |
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 How much would it cost to buy America? |
| I want to buy America, the country. How much would it cost and who do i make the payment payable to?... |
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 I've heard that asking for last months rent when moving into a new home is illegal. Is that true? |
| I've noticed that a lot more landlords are not charging last month's rent and I am wondering if it is due to the legality issues. Thanks much for your response.... |
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 Home Sellers: When listing your home, did an open house help? |
| I know every market is different, but did you really get more offers after an open house?... |
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 Tip to sell a house? |
| selling a house any tips?... |
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 What do you tell the rental office if you can only pay half the rent for now? |
| Until my next paycheck, I can only pay about half of the rent. What do you think I should tell them and what will they do?... |
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 How do we go about buying a house on a lower income? |
| My fiance and I are trying to find and buy our first home. We are getting married in March and would like to have a home of our own. We are both fairly young and do not have a large income. He has ... |
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 My Old Land lord wants my forwarding address do i have to give it to him ? |
| we had a bad ending of our time there and he told me i was losing my deposit so do i have any obligation to give him my address ~ the post office already has it and has already forwarded my mail to ... |
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Mike B | Why do people say you should buy the biggest home you can afford? wouldnt you just pay more intrest? |
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Marie T
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Yes, you pay more interest, more property taxes, etc. These are the same people who want you to run up debt on your credit cards, etc.
You should buy what you like in the range you can afford. |
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Jay M
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Because there is (or was) an expectation that the value of the house would appreciate and you would be leveraging the house value as an investment. That may be outdated now. |
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Andrea
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It must be for some kind of status symbol. I have a nice little house - it's just the right size for me. Not only would I pay more interest in a bigger house, I'd have to pay more in taxes, have more space to pay to heat and cool, more space to fill with furniture, more cleaning to do, probably a bigger yard with more yard work to do - the list doesn't end! To me, a bigger house doesn't only equal more money, it equals more work. I'd rather enjoy myself than be constantly trying to maintain a big house. |
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ome
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More interest, yes. Then buy more furniture to fill it, more up keep, more cleaning.. more, more, more.. Too bad it's become a way of life for some people. |
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Ski owl
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its a status thing. but yes over all you would pay more in interest. people are not buying homes to live in they are buying them as investments. I think its sad. I have every intention of living in my home until I am old and gray. |
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Nick Z
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Perhaps some crooked real estate agents popularized this slogan in order to make money for themselves.
House is a liability and not an asset. The bigger home you have. The more you have to pay for air-conditioning, heating, maintenance and repair, interest on your mortgage, insurance, and taxes.
The most prudent way to buy a house is to save up the money and buy with cash a modest house sufficient for your needs. And then you will save a lot of money on everything I've listed above.
Borrowing huge sums of money and living in a palace like a king may look good. But it doesn't feel good. Because you have to work like a slave to pay for it all. And in the end the bank may take away your palace from you anyway because eilther you loose your job or your interest rate goes sky high. |
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Anon
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Not the biggest, just the best. Bigger isn't better. My house is very modest, but I got all the upgrades. Countertops, lighting, flooring.....etc. |
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Angela B
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I believe people say this because, traditionally, you would get more for your money. However, with the current mortgage crisis, my personal advice would be to avoid this and go get yourself a great deal on one of the thousands of foreclosures that are out there. Case in point, my husband and I had a choice to purchase a $300k house or to wait. The house was gorgeous. In a great neighborhood, affordable, everything we wanted. We waited. Now the $300k house is priced at $197k and the neighborhood has SERIOUS problems. Smart move on our part. We can now take our $300k and get us a home in a well established neighborhood.
As for interest, that's a matter of credit rating. The better your credit rating, the better your interest rate. A year ago, we would have been subject to a $300k loan with a 6.75% interest rate. We took this year to fine tune our credit and can now get a $300k loan for 5.875% which is a huge difference. |
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cats2jlj
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Yes, this is the typical American attitude whereby people think bigger is better and the biggest is the best. But it is this kind of thinking that gets us into trouble (and serious debt). |
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Phil Y
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Because people are INSANE. They assume (which has been proven erroneous by the home market melt down) that house prices will always go up and therefore if you buy the biggest house you can afford you will be able to sell it at a bigger profit later.
Generally buying a bigger house equals a bigger mortgage, higher taxes, higher heating/cooling bills, and don't forget PMI because you probably can't come up with the 20% down payment. If you are going to buy a house (and that is not always the most financially sound option) buy a house that you can COMFORTABLY afford and don't worry about impressing people with your big house. |
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