Found a nice house, top of our price range, but requires us to move from our low priced starter home. The economy seems like a mess and economics was never my forte. Is it a bad decision to try to move up given current trends?
If anyone knew that they’d be very wealthy
I have a hunch that there’s a very stark reality to this statement, when it’s supposed to have the meaning “no one knows”.
It’s kind of a common joke among the American stock markets.
Depends on how secure your financial future is.
Maybe you’re in a good predictable business, or a nice stable government job, maybe you’re in something that’s making money right now, but could turn out to be a flash in the pan like startups, or AI or crypto or Pokemon cards.
Anything can happen, but if you can pay off the loan on your new house quickly, that reduces risk by a lot.
The issue isn’t the timing, it’s that your buying at the top of your price range, and therefore overspending.
Most Americans own too much house, and too much car. There is no reason a 2 person household needs a 3000+ sq ft home… and 2-3 60K cars… and yet that’s incredibly common.
BUY LESS. Be more financially secure!
No one can time the market. The answer depends on your risk tolerance and security buffers. It is schrodinger’s market. It is always the best and worst time to hypothetically jump in or out of markets. It’s only after you do that the probability wave form collapses and becomes one or the other.
Predictions depend on a stable system. No where is stable so don’t bother.
If top of your price range means you’ve already calculated for what would happen if your income was jeopardized, then go for it. If top is living beyond your means, then probably not a good idea any time.
in usa top of our price range means it’s more than they can afford and they are betting on their income going up in the future
Yeah it’s rough, but depends on your job and where you work. If you’re remote you have a lot of affordable, albeit undesirable, places to live in the US. If you’re working in a metro area you likely won’t be able to afford anything decent in the immediate areas around you.
Just a guess, but I’d recommend to wait one or two years. Things will get worse, and thus cheaper to buy. In the meantime save up for a larger down payment, instead of stretching your finances now.
After the next election, people will have more hope and prices will increase in the following years. Expect to hold the property for at least 10 years. Anything shorter could be a loss.
Depends. First, if you need financing, it’s probably not a great time to buy although if things ever get sane, you can refinance. The interest has been high. If you can buy outright, though, that’s a non-issue.
Second, it depends on where you get your income. Some sectors are shakier than others. Rely on public contacts? Avoid. Healthcare? Probably fine. Tech? No idea, probably a bad idea. If you might get replaced tomorrow, do not finance a home.
Lastly, consider where. You don’t want a place that’s going to be hazard prone with global warning. Places are priced accordingly but if your home ends up flooded, set ablaze, or lifted to another location by a hurricane, probably not a great idea. There won’t be enough public support to make up the loss.
I’m personally holding down my starter home but I had to buy points to pay down interest to meet a debt ratio, and my math suggested 8 years to make that a net gain. But the above reasons have factored into my holding back.
are you changing jobs too? is your job secure? do you have 6months +++ emergency fund? do you have a side hustle? does your partner work? are there jobs in the area you can possible do?
@Eryn6844 @FenrirIII why do you need to run after a job ???
I don’t think anyone here would be qualified to answer that, nor would anyone qualified to answer that be necessarily right.
I want to buy a new house but I know AI will put me out of work soon, so holding off. Realistically, I should leave for a much lower cost of living country.
Ah man, that’s a tough call. Personally we’re only moving if the place we move to has some potential for homesteading and self-sustainability to ride out this storm. These next years are going to be pretty turbulent to say the least. We’re laying low and living below our means.
To me the real question is: is your income recession proof? (eg, medicine or some essential service that even survived covid). Because we’re in a silent recession now, likely headed for a depression or major stagflation.
I’k probably overreacting, but I suggest spending your dollars while the dollar still has value.
Instructions
unclear, stopped buying anything.
What is your interest rate like? If you have a super low interest rate, no, it wouldn’t make sense.
It’s always better to not be in the US
Well it’s not going to simultaneously be a bad time to buy and sell.
It can be. I have a 30 year fixed interest of 3.25%.
Selling now means buying at 6.3%. Terrible time to both buy and sell.
Fixed for 30 years?! Holy shit, we can only fix for like 3 years here
That’s the standard in the US
1.5 here! Damn glad we got in when we could.
Yeah but you could do that with the plan of refinancing in 5 years or so when interest rates are different. Still a gamble but you’re not stuck at 6.3.
A guarantee of 3.25% beats 5 years at 6.3% and the hope it gets better… 😉
