Is now a smart time, or a REALLY dumb time to buy a home? Me and my wife moved to Korea in 2019... Mostly everywhere now we aren't allowed to go to because of the vaccine, we can go to small marts and old markets to get food and shop online, most everything else we can't. We believe in the next month or so they are going to start fining people who aren't vaccinated, we don't know how this will effect us as we are both American citizens... but if you don't pay the fine you go to jail... so over night Korea went totally authoritarian, with zero push back.
We are looking at moving back to the USA ASAP, there is a presidential election in Korea in March, so maybe that will change something, but I doubt it.
I know very little about home buying, I have what is considered a great credit score and I own my own small online business as a sole proprietor, it does seem to be doing well despite everything. I am not rich, I do have money saved for a down payment of some sort and my income is very medium income sub 60K on average.
Just with all the uncertainty and inflation, is it a really dumb idea to buy a house now? I'm looking at rent and it seems astronomical currently, I just wanted some opinions, should I just rent when I get back and see what happens over the next year or so?
I would second your last statement. Now would be a terrible time to purchase a home in the U.S. Residential housing markets nationwide are over-inflated, not only because of low interest rates, but also because institutional buyers are paying a premium for homes so they can sew up entire markets. https://www.cnn.com/2021/08/02/business/family-homes-wall-street/index.html
But you should also be aware of consumer credit trends. People are piling more and more on credit cards, and the storage business has been growing by leaps and bounds as people buy more than they have room in their homes or apartments to store. Student loan debt, car loan debt, mortgage debt, etc, etc., are all adding up to be massive warning bells. The financial markets are poised for an epic collapse.
I could go on and on. Take your time.
Yeah I think would be best to wait I guess.... seems like the best option really. I just feel like something major is on the verge of happening, so I'd hate to lose money, but really in the end it might not matter.
I'm leaning towards renting a house 2 hours outside of charlotte, in the mountains or foothills somewhere.
If you believe that we are about to experience a fundamental financial system event, and if you believe we're at the top of an overheated market, and if you believe we're going to experience a horrific die-off over the next several months, then the answer should be evident.
It's currently a sellers market.
It will soon be a buyers market.
Could be a good choice to rent for a year, then review the landscape.
Yeah I guess my only thought is, if we are going into such an "event" which I think it is possible to have some if not all of those things happen.
If I'm in a house... in the "boonies" then wouldn't that be better then being in an apartment somewhere or even a rented home?
But yeah I think rent for a year see how things shake out.... I'm of the belief you can't really live your life based on what might happen, otherwise you will never do anything. But I think rent for a year and review options is a good bet.... seems to be the consensus on here and with friends.
Free Florida is free of mandates... But housing here has skyrocketed with all the people leaving blue states...
I'm hearing stories about people being outbid over a dozen times on their buying offers and of buying properties sight unseen, so many are desperate to get out of blue areas.
As long as you are buying for a permanent roof over your head (not for speculation) and can carry the risk of being underwater on a mortgage should the housing market crash like it did in 2007/8. People have short memories...
If you don't have to be near a city to work, you're crazy not to look at rural areas. Taxes are lower and home prices are lower and it's just a better life. As far as now being a terrible time to buy vs rent, if all the properties are being bought up, are rents going to to even higher? I doubt if they'll go down.
Yeah I'm looking at foothills of NC or north western South Carolina, I need to be somewhat near Charlotte, NC as my entire family is there, I'd like to be within a few days drive.
Also been looking at Eastern TN
I can tell you Asheville is very liberal. They even passed a reparations law. Most anywhere in eastern US would be within a few hours of Charlotte. One of my relatives drives there fairly often from where she lives in southwest Va. and it's only about 3-4 hours away for her.
It's a bad time to buy. The market is inflated because of the supply chain issues over the summer when lumber went through the food and new home building stopped.
The question I have is it ever going down and if does how many are going to get slammed? Are we going to see a repeat of 2009?
Or has the market corrected to where they should be with steady growth if the crash of 2008 never happened? My first house is finally priced where it should be with a steady 4% growth since 2003.
Better than renting. Renting is like throwing money into the garbage. An investment you'll never get back. Even if you lose on a house at sale, it's better than getting no return.
Coming from someone who has been renting for over ten years. (limited credit history, saving up for buying a farm)
Good luck, get home safe.
What price range are you looking for?
I'm really not sure, sub 250k probably....
I would defiantly buy vs rent unless you just want to get a feel for a city and State.
I'm a real estate agent and this is an incredibly tricky question. I think location is the most important factor, I live in an area of the south that is a huge boomtown and even a full on economic crisis will barely touch our housing market because there are more people than houses. in 2008 we lost about 10% while much of the nation lost 25-40% in value.
Owning is typically better than buying but do your research and if you are handy consider finding a fixer upper at a reasonable price? Rent rates seem absolutely absurd at the moment however sometimes it is nice not having to worry about home repairs. I own multiple properties at the moment and I don't sell because typically land/property also holds value well during times of economic chaos, anyone who rode out the 08 crash would still be sitting on near 100% gains in home prices since the crash.
Also, I don't mind renting really, I like the idea of being able to move and not be tied down to a place, but I just want to do what is right for my family and my young son who is 2.
Any help or insight would be amazing, thank you all.
I don't know about it being a "terrible" time to buy real estate, but it sure is an expensive time. Houses in my market (east Tennessee, near Knoxville) are soaring to many times over appraised values. People from out of state have bought homes here, sight unseen, and paid up to $50,000 over the asking price
Ohio has a great market. Columbus is growing like crazy, you can get land 3-5 acres depending on the condition of the house for what you’re budget is.
It’s a tough call because of how inflated the market is. Don’t be afraid to look for a house with lots of cosmetic issues and learn to fix them yourself. I’m in the business of remodeling… way better to invest sweat equity