I know I need to start off my new blog entry discussing the wedding...but new hubby and I went house hunting over the weekend in our beloved city that we want to buy in (not where we live now)...and we found a property we think we will put on offer on!
Baseball Man is all set to go ahead and write in an offer...I am dragging my feet a bit. I know house prices will continue to go down...so we are going to offer 20% less than asking price to try and absorb some of the depreciation. The place has been for sale nearly a year and has only dropped in price 10% 2 months ago. We discussed that if we can get the house 15-20% off then we will always be happy with our price paid for the property no matter the depreciation.
HOWEVER...Have I heard that Obama is thinking of changing first time home buyers rules to allow first time buyers to lock in a 3% interest rate? I heard that there was talk of this. For Baseball man and me...that is nearly a $300 a month difference! ALSO, I heard there was talk of increasing the first time buyer tax credit from $7500 to $20,000. Once again...if that is coming..I want to wait to buy!
New Hubby is telling me those changes might be a year off IF THEY EVER COME...so I'm wondering what the likelihood is that I will be hating myself if we buy a property now.
First time house buying questions
November 6th, 2008 at 09:47 pm
November 6th, 2008 at 09:59 pm 1226008794
The one lesson I have learned in this industry is bet everything on maybe's. I know a lot of people who lost out on Ameridream (down payment assistance)because they wanted to hold out for lower rates and were betting on congress extending the program again. By waiting they lost 3% of their sales price in free money.
November 6th, 2008 at 10:00 pm 1226008842
November 6th, 2008 at 10:11 pm 1226009481
Do you know when the bottom will occur? How much lower will the real estate market go?
Personally, the way I would look at it is, am I ready to buy? Can I put 20% down and get a 15 year fixed mortgage? Do I plan on staying in this house for the next 5 years or 10 years? But I won't wait on something the government may or may not do.
I have a feeling he will be forced to be a lot more centrist then his policies. The 2 wars still need to be funded, the bailouts need to be funded, freddy and fannie funding, etc. Also he is looking at raising taxes and redistributing the money to people who don't pay taxes coupled with universal healthcare and other social programs along with alternative energy without nuclear and coal.
The senate will still have over 40 republicans and a number of blue dogs and moderate democrats that will probably limit the number of programs he can act on. Chances are they will be looking for more balancing of the budget.
So, I would say make your decision absent what might happen. Just my thoughts and good luck.
November 6th, 2008 at 10:49 pm 1226011744