I agree with you. I don't think I'd have the stomach to get into a variable rate at this time. I think this country is headed for inflation in the near future. The debt bubble has to bust at some point.
Like I said, pros and cons. I got a $135K HELOC to purchase a second home (rental income) back in 2004. Not sure how much the interest rate was at the time but it was pretty low. Term was for 10 years. In 2014, it will convert to a fixed rate at whatever the going rate is. Currently owe $35K and interest is still holding at 3.25%. I plan on having it paid off 2014 or earlier. House rents for $1475 (Austin, TX). The rental income pays for the loan and then some. In a few years, it will all be income.
I agree with you. I don't think I'd have the stomach to get into a variable rate at this time. I think this country is headed for inflation in the near future. The debt bubble has to bust at some point.
jp
i am looking out of necessity( living space for my son in school and close to beach).
i spoke to a realtor today and he told me that the housing market has not hit bottiom yet. he and other realtors indicate that houses will continue to decrease in sales price in the next 6-12 mths but interest rates will increase slightly. also he said that the banks have a whole $hitload of foreclosures on the books, but are letting them out 1 and 2 at the time so not to collapse the housing market. he is advising me to wait to buy a houase until next yr if i'm not in a hurry.
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Rules:
- Trade what you see, not what you believe
- Don't put stuff in your signature that a Mod doesn't like
"Government exists to protect all people’s rights, not some people’s feelings." - A. Barton Hinkle
Great Tools:
http://www.CreditKarma.com
http://www.Mint.com
http://www.SaveUp.com/r/nmJ
i thought that something might be funny! my initial thought was he did not want 2 f--k with me since i was looking at $100000 range and i mentioned that we could live with a home that needs some minor repair. the realtor came from a rec. from a freind. i looked on line on his site intracoastal realty and found several homes under $100000 which was very promising since he said most homes would fall in the 135s. i appreciate your comments and considerations.
i have had several offers that i have made 4-5 with no luck so far. i'm mainly looking at foreclose and short sales(lots of competition here). we have an offer just made this past sunday on a short sale. the last short the lienholder (bank) counterered our offer and added $3000 to the asking price and wanted me to pay delinquent hoa $1400, the nerve of them. i told them they could hold it! prices are good and i hear there are more homes coming. rates are good and expected to get better. anyone else have any experiences?
thanks
john
After a number of years where short sales haven't worked, I think it's time to start gearing up for a few foreclosures and short sales in the next 12-24 months. Home flippers are having a tough time selling in this market, and rentals are starting to cool off a bit. It'll be a great time to be a cash buyer next year. As an alternative, local credit unions seem to be offering lower rates than most banks as well.
It was a great time to be a cash buyer the past two years even though rates were some of the lowest in history. Unless you had 100% cash or a very large down payment, you weren't getting the house.
Hurricane ravaged parts of Florida might be a good place to buy a second home. Many properties will be lost because owners won't be able to afford repairs or re-build according to updated building codes. Good luck beating out the professionals that are down there right now making moves though. Besides, the properties that are bargains will be bargains for a reason. A "long term investment" for sure.
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