Quote:
Originally Posted by raeanna74
I think our economy could get a huge boost if the average guy who HAS any money available were to start investing it instead of running scared. Our media has caused a panic, more or less, that is preventing people from spending any money.
The housing market being so slow has brough down housing prices tremendously. Some houses are actually being sold for half or less than half of the money it would cost to build the identical house now. Interest rates are extremely low. Anyone who has any half decent credit could get a home loan for next to nothing.
For example: I was renting 5 months ago. Rent was actually pretty cheap for my area. About $300/mo + utilities. I bought a home in August. It was a forcloser being sold for about 1/6th of it's last purchase price. I got a loan for a fixed 6% (reasonable - interest rates have dropped even further since then) and managed to buy this 3,000+ sq ft Turn of the Century Colonial for $18,000. My mortgage payments PLUS my utilities aren't more than my rent was previously. Granted I have home owners insurance and taxes (which are only $6-700/yr each) but the investment will pay itself back EVENTUALLY. In the meantime I reduced my living expenses and get to have my own, LARGE home.
Imagine what it could do for our economy if people in my position would start to buy homes. Housing sales would increase, media would (hopefully) report it, that news would encourage other investors to start using their money, ... who knows what else would be affected. Even if it's only a marginal improvement - I have a feeling it would be a more effective, long term solution than our government is considering.
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I think a lot of what you're saying makes sense. But the media reports shit that happens- like the jobs and retail sales numbers and the markets trends down, which they report making the markets trend down even further. Can't really fault the media for doing their job. It's not like the people on the floor at the markets aren't going to read these reports and cause the market to fall. I'd rather have the news tell me what going on them blame them for it.
Upper Michigan has some really low property values. I've seen some stuff that I just couldn't believe. But the job market up there would be a concern. In your situation sounds like you're employed, using the home as a residence and thus it makes a hell of a lot more sense to own then rent. As an investor buying property in the rust belt (or anywhere even near it) would be a pretty big gamble.