I got a shock!

[gvblake22]

Originally Posted by onebxr

Think of it this way, they cant make any more land....

Actually, they can!

[Hitman]

Originally Posted by gvblake22

Actually, they can!

The Japanese did it too.

Kansai International Airport - Wikipedia, the free encyclopedia

[onebxr]

GJ way to destroy my point. AHOLES! :) But eventually, you cant fill the earth with land, there is only so much liveable space on the earth. or maybe you can invest on a nice spot on another planet.
-1

[Reloadron]

Originally Posted by Hitman

Instead you will be stuck paying rent for 20 years until you save the money to buy a house cash. I don't think you truly understand how buying a house works. Think of it this way, no matter what you have to pay to live somewhere, if your not paying a mortgage, your paying rent. The problem with rent is you never get the money back. When you buy a house your house gains value. On average the value of a home doubles it's value every 10 years. So if you wait say, 10 years to save the money to buy a house, you actually loose money, because the house will be twice as expensive as it was 10 years prior. In most areas the cost of rent is just as much or more then the cost of a mortgage of a similar home.

I don't know if that is totally true. While I strongly agree that buying rather than renting (when possible) is the better way to go, making sure you get what you pay for figures into the equation. To say a house I buy today will double in value over 10 years may be a little off target. Part of the mess people are seeing today is part of that.

Housing cost became inflated, really inflated. Houses worth let's say $100K were selling for $150K with financial institutions fronting loans for houses worth considerably less than selling price.

Since 20 year notes are about as extinct as a 24 month car loan looking at a 30 year note the payments on a $150 K note would be about 1% or $1,500 a month. Right now, today, many people that bought a house as short a time ago as 5 years are making payments on a house that after 5 years is worth less than they paid for it. Actually a negative equity situation.

Right now is a damn good buyer's market for a well qualified buyer who can snatch a good deal. The trick is to work with a fixed rate and not over extend ones self. To say the home will double in value in ten years is pushing things a bit. Location figures into it big time.

Overall, for a well qualified buyer with about 10 - 20% down is a great time to buy. Additionally, looking ahead (as in many years ahead) it's always better to buy than rent in most cases. When I retire the last damn thing I want is a house payment.

Ron

[Hitman]

Originally Posted by Reloadron

I don't know if that is totally true. While I strongly agree that buying rather than renting (when possible) is the better way to go, making sure you get what you pay for figures into the equation. To say a house I buy today will double in value over 10 years may be a little off target. Part of the mess people are seeing today is part of that.

That was only an approximant figure, not based on any in depth research, only personal experience. Of course location, current economy, and the condition of the home factor into the equation. I am not saying every home you buy will double value every ten years, but rather it's possible that it will.