What year is estimated that the real estate market should rise at?

Question

I'm going to buy my in-laws home for them, it's a four bedroom 2 bath, manufactured home, on 5 acre's? they owe $210,000 on it still. Does anyone think I shouldn't do this and why...

Also is there a way the market will go up in around 5 years or so? I mean once we hit rock bottom...there is only going up from there, right? :)

Answer 1

you shouldn't do this because there are houses with more bedrooms, more land, more everything getting repossessed by the banks (who are risking bankrupcy themselves)  and getting sold for HALF that just to pay the bills.

So, paying inflated prices now isn't a good idea, if you have hard cash, now it's worth twice, if not more than twice.

It has always been like this, when the bubble burst if you got the money you buy the pieces for next to nothing.

Answer 2

this will give you a few clue why now it a great time

http://real-estate-investing.guidearticl...

Answer 3

So, what are you buying it for (how much)? Is that more than the property is worth, less, or just about right? If less or just about right, I would say go ahead. The market is at a low point because of all the foreclosures that flooded the inventory. Analysts estimate that this inventory will begin to subside in late 2008 to early 2009. When foreclosures subside and inventory drops, prices will stabilize and slowly start to come back up.

Another thing to consider is interest rates. With the mortgage crisis, banks are making it harder to get a mortgage. The domino effect of this action is that banks are issuing less mortgages and, therefore, making less money. So, interest rates are being raised to compensate for this lost revenue.

Housing affordability for a home bought with a mortgage is not necessarily dependent on the price of the house, but rather the monthly cost of ownership. So, if you wait 6 months to buy that property and the price goes down, but interest rates go up, you're still going to have the same monthly cost for ownership as if you bought it now at a slightly higher price.

No one has a crystal ball to be able to tell what exactly the market will be like 6 months or a year from now. But, with prices and interest rates as low as they are, you would do well to buy now or wait a little bit. Certainly better than the people who bought at the top of the market 2 or 3 years ago.