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Originally Posted by cyrnel
No doubt. It remains the most important material investment (jumpinjesus - hint  ). Still, buying near the edge of a market swing can sure force lifestyle changes. I feel for the first-time buyers who let themselves be swept into buying at their absolute limits only to find themselves in a precarious position. Market-wide this only serves to depress prices and prolong the recovery. |
I'm different. I feel no sympathy whatsoever for those individuals who let themselves get suckered into those interest only and negative amortization mortgages. They deserve whatever they get. This is where market research before buying comes into play. Stretching yourself to the limit just to buy a house is something you NEVER want to do.
Especially in a "hot" market that has nowhere to go but straight down.
I like to play the waiting game myself. I’m just sitting on my 30 year fixed rate home (in a local non "hot" market that will survuve the brunt of the bubble burst) that still has equity looking out on all the other homes in my neighborhood waiting for all the interest only fixed rate periods attached to them to expire. When they do, and they’re backed into a corner and forced to sell at a loss or walk away, I’ll trade up at a bargain price.