************************** integrate following: The KEY is to buy what you can afford and WHERE you can afford it. That means never accept a mortgage that is greater than 28% of your gross earnings and if it requires relocation or a few more exits on the Parkway then so be it. If you follow the published guidelines (28% of gross earnings budgeted for mortgage) and I'm sure you know them having purchased 2 homes before then you will be OK... If your wages make that impossible then further your education and job skills... Now the next step you seem to think homes are overvalued. That is a myth and as far from the truth as one can get. To pay for rent of a $500K home requires you to pay the rent and save $650K on top of that to pay future rent when you are 65 years old (extracting 4% annual from $650K pays $2,100 per month in todays dollars)... To me renting is more expensive because you need to do 2 things pay the rent and save $650K to pay the rent when you are no longer working... The homeowner has to do one thing pay the obligation off before he turns 65. Both the owner and renter also need to save for retirement. So pay yourself now or pay yourself later... That alone tells me that real estate is undervalued! The problem is you guys always factor in rent vs. own and forget about replacement costs (paying rent for the 25 years you are retired) down the road. ************************* Guys paying rent is not investing and paying rent during retirement is impossible... To squander your prime earning years paying rent because you cannot afford to step up and pay a little more for the mortgage is your plan but there is no payout when you get older. Roger Clements the famous WSJ reporter says buying a home is a forced savings plan and let's face it Americans are not savers so if buying a home helps you save you need the help! _______________________ It is also important to think for yourself. I get the impression a lot of bears follow like sheep and have been for years. They are asking the wrong questions. The question shouldn't be, "How much longer do I have to wait until the risk of a falling market goes away?" A better question is, "What is the best way to make my money work for me right now?" ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, |