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by Mattweb from The Newsroom

Last Post 246 days, 19 hours Ago


Economic Woes- in Our Heads?
Feb 29, 2008 | 8:02 PM
Category: News
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I'm looking to buy my first home and some financial-types are telling me this is a great time to buy.  But there is a reason personal spending across the board has flat-lined.  People are hanging on to their money.  Is this the time to make such a large investment?

The guest speakers at the home-buying seminar I attended last night said the level of housing foreclosures and the clamping down of credit were being blown out of proportion.  They blamed "The Media" (one of my favorite terms- who are The Media these days anyway?) for brainwashing everyone into believing that times were uncertain and that buying a home was risky.  At the heart of their speeches: money is available (federal first-time home buyer programs) and "great" interest rates can still be found (not 4% anymore, but 6.5%- "awesome" as I was reminded when compared to 17% in the late 70s).

I take that pep talk with a grain of salt.  It doesn't take a journalist to figure out that they are trying to sell houses and make loans. 

So I did a little research online, which seems to bear out that, if you can land a decent interest rate, maybe you could land a decent place.  The housing data for the handful of zip codes I checked seems to indicate fewer home sales.  And in the cases in which sales levels were where they were last year (or close to it), the average selling price was lower.  If this squeeze continues, people may get desperate and chop $20K off the price to unload...?

There's a lot more research I need to do on this.  The Fox Business Financial Planning Tools have been a help.  But every financial planner I've seen on Good Day is still saying wait to make a move.

Any advice out there?

Guess I need to see a "sold" sign in my mind before I'm ready to see it on my new front lawn.
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Member Comments Total Comments: 7
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movealready read my blog
Mar 1, 2008 | 10:00 AM

It's a no brainer..BUY ,BUY,BUY!!! Rates are as low as there likely to get, people are scratching to sell and nobody is buying. To top that off, yes, the housing market is in a slump, but it will get better. Housing is always a good investment. Things to pay attention to:
Buy in an area with a good school district
DON'T BUY IN NJ
Spend reasonably, stay within your budget, there are far more expenses than just a mortgage.
Forget about the notion of "buy bigger"...you'll grow into the mortgage. Hence the current problems we are having.
Let the realator know you are looking at other houses seriously, they will lean on the sellers for more concessions.
BUY,BUY,BUY!!!!
Condos are a nice choice if your single, down the road,they'll provide great rental income and some equity . They'll allow you to not have to worry about outside maintainance.
B_Don read my blog
Mar 1, 2008 | 10:07 PM

Matt, recently all of the tabs on this site have completely stopped working on my computer. I've tried in I.E. and in Firefox, but no luck in either browser. For example, if I click the weather tab, the "Current Conditions", "Forecasts", etc. Tabs will show up on the side, but the middle is just blank...on every tab. What's going on ?
B_Don read my blog
Mar 1, 2008 | 10:35 PM

You can e-mail me at coolbrid@verizon.net
GabeNewman read my blog view my photos
Mar 4, 2008 | 9:26 AM

Buy, buy, buy, but be sure your income (employment) is secure! Who do you work for? Who is in bed with them? Are they secure? If you're self-employed, then consider those verticals that you work with? There's more to this decision than that it's a buyers market, although it is that, if everything else is right!
GabeNewman read my blog view my photos
Mar 4, 2008 | 9:27 AM

Oh, I just read your profile... Uhh, go ahead and BUY!
DeweyDevil read my blog view my photos
Mar 25, 2008 | 12:37 PM

I just saw this one.

Matt,
Go old school with first can you afford the home?

Its just like with rent. Use the 30-40% rule.

Each month your take home pay..... take 30-40% and that will be your mortgage payment.
Be sure to escow the insurance and taxes as well in that payment. That will be what you can afford to pay each month.

Then look at your credit. If your fico is 700 or above you can get a mortgage anywhere at a great rate.

Now for downpayment options... If you have the money for the 20% down do it. If you dont have it but your parents can help you with a "gift" ask them. You can use that money as part of your downpayment and you wont be taxed or penalized.

Depending on the state/county you are in you can also get first time home buyers assitance to cover closing costs etc.....

If you are single with no rugrats buying a home is the best investment you can make come tax time. The refunds on interest and the local taxes you pay are incredible.

I am not a realtor so I am not hard selling you here.

I used to be a wholesale lender in the residential markets though.

So as you get closer to deciding let us know.

There are ways to really save on closing costs.

Hint number 1:
Shop around for your own title company.
You can quite often save 1000 dollars or more by doing that.
Mattweb read my blog
May 23, 2008 | 10:58 AM

Hey all-
Thanks so much for your help. I'm working to get organized here and when I save at least the 10% down if not 20%, I may pull the trigger. Much appreciated!
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Mattweb

My name is Matt and I am one of the interactive content producers for MyFoxPhilly.com. My background in news includes work both behind-the-scenes and on television.

Member Since: 9/13/2006


 

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