Comments on: Urban Buyer Question

By: Kathy Anderson

Kathy Anderson — Sat, 16 Jan 2010 23:03:03 +0000

I think there are a great many buyers who will be saying woulda coulda shoulda in the not too distant future. What you are saying here is what I also feel is true for some of the Arizona active retirement communities. Inventory is at an all time low and demand is on the rise. After all… it always comes down to supply and demand.

By: Trevane

Trevane — Mon, 14 Dec 2009 17:07:10 +0000

I’ve also wondered about waiting for prices to fall again but at the same time I’m scared that if I wait too long perhaps prices will actually start to rise.

By: Bill

Bill — Thu, 19 Nov 2009 04:27:33 +0000

401k Contribution:

Your first question probably depends on your age. Certainly if you focus on a 401k rather than establishing roots in one city, you not only get a jump on the advantage of compounding, you stay flexible and can move pretty fast to another city with a better job opportunity.

I would definitely focus more on contributing to a 401k if I was in my 20s and stay out of Real Estate until I’m in my mid-30s.

Your company’s benefits department has literature about compounding explaining that you will be able to retire early if you max your 401k and IRA in your 20s compared to if you just put in a matching contribution. If I was 20, I’d certainly want to retire at 40 instead of 65.

About your questioning on borrowing from a 401k. Answer: Not if it’s a traditional 401k (I wouldn’t). You’d have to pay back to your 401k what you took out. If it’s a Roth 401k or Roth IRA you can take out what you contributed after five years. So in the sixth year you take out what you contributed in the second year, and so on.

By: 401k contribution

401k contribution — Tue, 17 Nov 2009 03:47:32 +0000

Wouldn’t it be better for me to just continue to make a 401k contribution instead of sending that extra money into real estate during these times?

If the times get better couldnt I just borrow for the downpayment from the 401k?

By: MAS

MAS — Mon, 02 Nov 2009 15:19:17 +0000

If it is a great deal now, it should remain at least a good deal tomorrow. Inflation is coming though, so don’t wait too long!

good luck!

By: brandon adamson

brandon adamson — Sat, 31 Oct 2009 17:24:24 +0000

It would be a good time to buy if you are paying in cash maybe, but the reality is most of the places that are good buys are impossible to get a loan for because they are not at least 50% owner occupied or have other issues. I just had a measely $60,000 condo under contract only to find out just before closing that it is “unwarrantable” due to it being only about 35% owner occupied. No FHA, No conventional, no nothing. I asked what alternative methods of financing were there. They told me none. The worst part is that it’s a catch 22. Since banks won’t do loans on these condos, that leaves only cash investors who are going to rent them out, thus further reducing the number of owner occupied units while at the same time “ghettoizing” the complexes with rental tenants.

If anybody knows a way for a regular 1st time homebuyer (who just wants to buy a place to live in) to get past this hurdle feel free to email me.

By: Bill

Bill — Fri, 30 Oct 2009 03:12:41 +0000

Logan,

Getting the best interest rate is moot if your job is outsourced, particularly if it is in the profession you have studied for in four years (or 6 years – masters degree) of college. But loft buyers tend to be doctors, lawyers, and bankers or their adult children who are college students, so maybe that’s not a problem?

By: Bill

Bill — Fri, 30 Oct 2009 03:07:58 +0000

If you have the cash and can pay off your purchase in one sitting, if you have more cash to be able to sit out for two years without income, and if you found your dream loft. Splurge!

By: treatmentsforanxiety

treatmentsforanxiety — Thu, 29 Oct 2009 09:09:15 +0000

you will never be able to by at the bottom. but the prices has dipped to the level where one can start buying the houses. thanks for the good post

By: Logan Utah Real Estate

Logan Utah Real Estate — Wed, 28 Oct 2009 16:42:58 +0000

For those that are waiting for prices to come down lower, I think they will. However, you can’t tell if they are at the bottom until they start to rise, which means you will never be able to time the bottom of the market. Waiting is fine if you don’t want to get the best interest rate you will ever see in your lifetime!