To rent or own, that is the question

[ragani]

The last couple of weekends have been taken up with the great apartment search. I love where I live, but it really is not big enough for me, my lovely roomies and chaosloom. And really, in align with that "starting our new lives together" thing that we are embarking on, it seems like a good time to strike out on our own. Timing wise, we should probably move

Comments

[whuffle]

If you can look at your lives and expect to commit to owning whatever you buy now for 5-10 years, then yes, it is a good time to buy. The market runs in 7-15 year cycles. We're at the low end of a cycle right now so if you buy now, you should see an appreciation of what you buy in 5-10 years' time

[furycom]

I'm no good at going into the economics of whether it's a good idea, since so much depends on income levels, rental and housing markets in your area, the social dynamics of your roommates and how long-term your plans are, but the first step would be figuring out an ownership scenario with your roommates and then getting a loan pre-approval so you have some idea of which properties you should be looking at. Too many people househunt first, find something they love, and then either find they can't get the loan to swing it or take too long getting the approval and the house goes to someone else (though this may be less of a problem in today's slower market).

Good luck!

[howlgirl]

Have you been sharing finances for long?

I would strongly encourage you both to plot your spending habits over the course of a year before you jump into a major purchase. The market *may* start changing before then, but there is no way it will recover in a year.

[fresne]

It is a good time to buy a first house. It is not a good time to get a loan as a first time home buyer. And I'll say, September is an extremely tight deadline for working out all the things that have to be lined up to start thinking about a home purchase

[xthread]

This is not yet a good time to buy.
The market probably has another year of shaking out coming, and if you buy now, you will have to watch as the value of your property falls, which is ... not pleasant, for most people, before it starts to recover.

As another poster has pointed out, getting a loan right now is also... exciting.

[xthread]

Actually, here in NorCal, we're down much less than people from outside the area expect - the Bay Area hasn't fallen much, though it's fallen some. Stockton and parts of Southern California have fallen off a cliff, however.

But there's still more down coming.