Thoughts about buying a WS home now?

[kootchman]

I know… I mean what the heck I’ve only purchased a dozen or so homes .. after you deduct expenses for stuff like landscaping, improvements etc… the capital gains for the average homeowner is nill. Historic values over what term? I can pull the five years after the “turn out the lights Boeing Bust” you can use those numbers or I can pull the last 10 years…and cry even more. All these underwater homes were “affordable” too.. didn’t mean they were a good deal did it? Wanna buy a home on Euclid Ave in Cleveland,,once the home of ole JD Rockefeller himself? Just tear off the condemned signs and move right in! quote from wiki “By the 1920s, the former “Millionaire’s Row” was in decline. During the Great Depression, many mansions were converted by their owners into rooming houses, which accelerated the decline. In the 1950s,” Given that logic… dump every cent you have into the market and follow a DJI index fund… the annualized return sure beats the hell out of real estate. over the last 50.. . Spoken like a true realtor. I defy you to show me an increasing market valuation when unemployment is above 8%…. 25% of the total home loans outstanding are underwater… I follow the same trends you do…and “affordable” doesn’t mean a good investment does it? we are not at the bottom of the market yet. Hey…. a home in Newark NJ is affordable today at $5,500…and sold for 120K 35 years ago. jeesh… I’ll buy a few months later in a rising market before years early in a down market. And my point was… since rate are so low….take any chance you get to pay off in 15 or 20…this is an unparalled time to build equity quickly… it’s 3.88 money…use it. It’s a far better position to be in when ya see the banker when half your mortgage is paid off…and then you want to convert it to a rental AND buy up. There are some good deals out there… use the low interest rates to build equity…. equity is money in da bank! Debt is debt… affordable or not. In point of fact most economists point to the 30 year mortgage as a part of the bubble…it allowed builders and sellers to inflate housing prices because it was “affordable”.. it’s like the 72 month car loan….the pretty shiny “beemer” is “affordable”…over 7 years. Meaning you can make the payments. I may be wrong, actuarial tables may be a myth.. but I would count heavily on subsidizing your SS if I was is the sub 50 group….just my opinion. I passed econ 101 AND history 101 too…

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[JoB]

kootch…

did you factor the “value” of not paying rent into your equation?

Note: to do that, you subtract the market cost of renting the home you purchased from all of those improvements you made…

and yes, i know the IRS doesn’t require you to do that…

but if you are going to make an accurate analysis of cost/benefit… it matters

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[WorldCitizen]

Seriously, though, if you like West Seattle and are willing to ride out the volatility at the lower (below 400K) range which is most likely to stick around for the next few years, until the stock of homes on the market decreases, then barring you buying a home with a major problem and in a bad location, your investment will be a good one. If you buy to make a quick buck, and you aren’t a contractor that intends to do all the work to fix the place up yourself, then it ill most likely will not net you very much in the turn around. Each situation is different, but the market isn’t “calm” now, and most likely won’t be for a couple more years. The only person who would tell you differently is trying to sell you something.

I would suggest looking into buying in a highly walkable neighborhood. Or one with a view. That’s always going to be in demand. Regardless of the market.

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[angelescrest]

A nearby elementary school with a great reputation should be considered as well.

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