I chose this comment for the “Comment du Jour”, as it is a very good, brief description of the mindset of many buyers currently in the market. Thanks “Ah Boom”, and thanks to all the others that have responded and shared their thoughts on that thread.
You put your life savings down [on a home in SF] and pray to [G]od you didn’t buy at the top and your family doesn’t have any life issues such as illness, injury, divorce, death, unemployment, or downswing in business, which results in you losing 60% or more of your down payment after even a 2% depreciation due to closing costs, commissions, taxes and penalties. A modest 6% depreciation could result in you losing everything.
Its an easy decision to make when an upmarket is just beginning and salaries are rising, but when all indicators are trending down it is difficult to escape the feeling that you are playing a game of craps at the highest stakes table in las vegas.
“Da bulls” (not Ditka’s) have been responding a bit more than “da bears” (also not Ditka’s), and there has been some question of “all indicators are trending down”, but a good comment nonetheless and one that really gets you thinking.
To add my two cents. There is absolutely nothing wrong with renting. If you want to buy real estate, there is a whole world of markets for you to invest in. Buy elsewhere, and rent here. Nothing wrong with that.
As an investor, now could be a good time to snatch up some property in markets that are hurting. Buy low, rent high, think long term.
-Done Deal in the Outer Parkside [theFrontSteps]