Vettezuki |
03-26-2013 01:50 PM |
Quote:
Originally Posted by Shaolin Crane
(Post 112702)
Well that sucks, unless I start making buku bucks i'll have to put my housing plans off for a while it seems.
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Do you enjoy or are you at least capable of basic construction/handy man type stuff? If so, you can find "fixer uppers" or houses that need "TLC" for an ok discount, though they are getting chewed up by flippers now.
This all might just be a flash in the pan and settle out once liquidity gets used.* In any event, save for a 20% down to stay conventional and avoid PMI and other hassls if you can, find a house that needs a little attention in an ok neighborhood and you *might* be able to find something that wouldn't break the bank, especially if you were willing to go out a little ways towards Fontana/Riverside. This is where a lot of people get really fucked up. A house is not really an asset, it's a liability sucking money and time away. It's only an asset if you're renting for positive cash flow or at the time (and only at the time) you sell it for a profit. Always assuming the price of real property will be higher in the future just cuz is not all that bright. A few million people have had there asses handed to them in the last couple years on that little error.
*Liquidity
The banks are flush with cash. If they open the flood gates (lowering requirements for example) for whatever reason(s), all bets are off, property values would sky rocket to who knows where. On a tangent, there's already some signs of general inflation (and definitely in the producer prices area). Fortunately productivity is always increasing and people and banks on the whole are a "little" more careful on the spending side than before, so things might stay reasonably under wraps, but no guarantees. The gun is loaded, it's just matter if we're going to put it to our heads and pull the trigger. :smack:
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