In the market for a new home? 2011 would be a good year to buy

Discussion in 'Economy' started by Sail Away, Jan 25, 2011.

  1. Sail Away
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    Sail Away Member

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    If you are in the market for a new home, 2011 would be a good year to buy…in a different country.

    I’m not the sort of person that stores a year’s supply food/water. I don’t have a safe-room. I don’t even own a gun. I've never bought into conspiracy theories. I don’t hoard gold. I don’t believe that Democrats or Republicans are the devil (the combination of the two parties is Satan-like). I don’t believe that that dollar will debase. I don’t believe (as Ted Turner does) the people will be eating people. However, this is what I do truly believe:

    1. The government is NOT doing the taxpayer any favors at all! It is very, very evident what needs to be done to get the US back on track. The government is going in the opposite direction. In order to get the “jobs” that all economists, politicians and populous are continually calling for, the government MUST INVEST IN HUMAN CAPITAL! All talk, by congress, accentuates exactly the opposite. Proposed budget cuts, entail ABSOLUTELY NO cuts to MILITARY, SECURITY or POLICING entities. So we continue pumping money (that we don’t have) into entities that are financially destructive to the taxpayer. NO MONEY is (or will be) allocated to (the desperately needed) educating/training those who were displaced by the Subprime collapse or the corporate manufacturing exodus.

    2. What did Bernanke really say regarding QE2? What he said was that they would buy $600 billion of intermediate term Treasury securities by June 2011. He never said that was ALL they would buy. He never said they would stop. Considering that foreclosures are up 21% in 2010, one would have to assume (with little change in unemployment) that 2011 is not going to be much better. Hello QE3! Hello even less confidence in the dollar! Hello to the US refinancing the 35% of its massive public debt (required in 2011) at a higher interest rate. Most of the remaining 65% must be refinanced by year-end 2013 (worse yet).

    3. Approximately four states are currently bankrupt with most others running unsustainable deficits. We all know that even if there was an “iota” of hope in reducing unemployment in these states, it would take years (and a competent congress). We all know, with the end of the Build America Bond Program, that the predicament of these states is only going to get worse. Say hello to a Federal $120 to $160 state bailout program.

    4. Is there any human being, on this earth, that believes that his is sustainable:
    • 2008 US budget - $2.9 trillion Deficit -$464 billion
    • 2009 US budget - $3.1 trillion Deficit -$1.5 trillion
    • 2010 US budget - $3.6 trillion Deficit -$1.4 trillion
    • 2011 US budget - $3.8 trillion Deficit -$1.4 trillion

    Is the any human-being that believes that the same entity (congress) that let things get this bad, can balance the federal budget? Do you believe congress can even make a substantial difference while the country is in a “jobless recovery” (recession), a corporate production exodus, manic trade deficits and is financing two wars?

    5. We all know that sooner or later, the main source of financing this country, government bond purchases (public debt) will collapse. Either by lack of participants or by outrageous interest being forfeited (like California, Illinois, Greece and Ireland). Since the dollar is independent floating currency, very high or even hyperinflation will occur. This leads to internal devaluation(s) against the world’s “basket of currencies”. The IMF will not be in a position to help. This will not be pretty in the land of 200 million guns.

    Maybe a house in Equator?
     
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  2. Oddball
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    Oddball BANNED Supporting Member

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    Mebbe Chucky Rangel can get me a good deal on a little place in the Dominican. ;)
     
  3. shintao
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    shintao Take Down ~ Tap Out

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    Hmm, I came away with a different message. That this depression is really about padding the riches pockets by doing the final blood withdraw from the citizens last ounce of cash.
     
  4. LordBrownTrout
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    LordBrownTrout Gold Member

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    I've seen land fall in value by up to 50 percent over the last year and a half in Montana and Idaho. Might be time to swoop in and pick some up in a few months.
     
  5. shintao
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    shintao Take Down ~ Tap Out

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    Here in Ca. homes are 60-80% below 2005 appraisals, and better deals through the auctions. Banks had stopped repossessions for about 6 months to try and drive the market up again, but have now decided it is time to take back more homes and the REO man is in business.
     
  6. Sail Away
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    Sail Away Member

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    Most that I read, says housing will loose another 10% to 15% in value the next two years, depending geographic area.
     
  7. konradv
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    konradv Gold Member

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    Good time to upgrade your living arrangements, if you can afford it and get a loan. Where I live housing prices are off about 30%. That means my hypothetical 100K house would only get me 70K. However, the 200K house I've been looking at is also off 30%, coming in at 140K. So, before the housing crash I would have had to finance 100K to move to the new house. Now, however, the same move would only require I fianace 70K!!! Time to move, if your financial house is in order.
     
  8. Wry Catcher
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    Wry Catcher Platinum Member

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    Do this if you are inclined to upgrade or purchase: Find a lender and pre-qualify before you waste time and energy looking at real estate. Have 20% down (25% if buying an investment property) or don't waste your time.
    Google the lender before filling out the loan application, learn from the experience of others.
    Expect the better properties to go fast, those with cash in hand are still buying and flipping. Flipped homes look good but can have cancer in the basement, crawl space, attic, plumbing and electrical systems. Inspections can become expensive, not inspecting can be fatally expensive.
    See if the property has been purchased recently and is being flipped, this will cause delays in securing a loan.
     
  9. B. Kidd
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    B. Kidd Gold Member

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    Good time for retirees to downsize too, if you can get rid of your current sticks n' bricks.
     
  10. william the wie
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    william the wie Gold Member

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    Housing prices are in freefall in large parts of the country.
     

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