In the Raleigh area, would you rent or buy right now?

keep in mind, were i to rent i'd probably have to get at least a year lease, so that'd mean the earliest i could go back to looking to buy would be late 2008/early 2009

i keep reading that the prices are still dropping but i've read differing opinions on when it'll hit bottom, so i'm hesitant to be locked into a lease and miss the window entirely

opinions?

12/29/2007 8:37:41 PM

It's a buyer's market out there, so now's a pretty good time to buy. This will probably be the case for the next year or so. Prices may drop more or level out, but we're not going to see the level of market correction that Tampa, Miami, Vegas or other formerly hot areas saw. Too many people are moving into the area.

Also, there's been talk of a moratorium on new construction given the water situation. If that were to happen, prices will likely rise based on simple supply/demand.

12/29/2007 10:03:20 PM

buy downtown.

12/29/2007 10:30:54 PM

Buy now.

Plenty of inventory on the market. Great environment to negotiate in. I don't really see prices dropping, they never surged that much here so they don't have much room to drop back down. People are more motivated to sell but not to the point where they can afford to take a huge loss, their homes never shot up in value.

All that hype on fox news mainly pertains to other markets such as Florida where the prices jumped so high so fast there was not nearly enough demand to justify the prices.

12/29/2007 11:52:27 PM

my neighbor's house is for sale. buy it so i can have a walking-distance drinking buddy.

btw, hi i'm jody. welcome to the neighborhood and have a beer.

12/30/2007 3:38:23 AM

buy low (now), sell high (later)

12/30/2007 6:36:51 AM

i think now is a good time to buy

12/30/2007 10:20:45 AM

My house is for rent in like 1-2 weeks.

[Edited on December 30, 2007 at 12:05 PM. Reason : My fiance might even work out an alternative lease. He has done it before.]

12/30/2007 12:05:02 PM

Quote :

"In the Raleigh area, would you rent or buy right now?"

My basic economic stance is that you should think of your home as a place to live. Buy a house because it you love the area and/or structure and wouldn't want to be priced out in the future. Not because you expect to make money.

If you like to think in stock market terms then the "enjoyment from living in it" dividend from your home is its biggest source of return and is likely to dwarf the capital gains.

That having been said, it depends on the area you are looking.

ITB is likely to see very little in the way of price declines and my guess is that the price stagnation will be short lived. The further you go from the center the more likely there are to be real declines in price. However, there wasn't a major bubble in Raleigh real estate and so the declines are likely to be weak.

All of that could change if the recession hits the tech industry hard but for know I would be on prices everywhere in Raleigh being higher 5 years from now and significantly higher Inside the Beltline.

12/30/2007 3:46:02 PM

if you're financially capable of purchasing a home right now, then I see 0 benefit of waiting.

the tax write off alone should be enough incentive. if you do a 30 year fixed, the loan is going to be frontloaded with interest so very very little actually goes towards principal. 80-85% of your monthly payment is interest.

personally, i think spending money on rent is the biggest waste of money ever.

as a first time home buyer too, you can do an FHA and i think you only have to put 3% down. Ask for the seller to pay closing costs, and give you back a couple grand at closing so you can do some repairs. If you time the closing right, you can go almost two full months before making your first payment.

like mentioned above, home prices arent going to drop enough(if at all) within the next year to make it worth waiting.

12/30/2007 6:37:55 PM

Quote :

"buy downtown."

Not unless you can get an awesome pre-construction price on something. The downtown market is rapidly being flooded.

12/30/2007 7:12:59 PM

do you want to buy a house?

can you afford to buy a house?

if the answer is yes to those buy a house

12/30/2007 8:17:16 PM

thanks for the info guys

12/30/2007 9:32:56 PM

Quote :

"buy downtown."

i own downtown. i just got my tax assessment. buy downtown. but don't buy my place...thanks.

12/31/2007 2:24:50 AM

wtf kinda rabble is that

12/31/2007 10:08:22 AM

Quote :

"Not unless you can get an awesome pre-construction price on something. The downtown market is rapidly being flooded."

I had this discussion last weekend. Someone was comparing Raleigh to Charlotte 10 years ago and saying you should buy all the downtown real estate you can. I pointed out that while the triangle is expected to surpass Charlotte as the biggest metropolitan area in NC, our jobs are spread out all over the place whereas downtown Charlotte really is the core of their business. We have more jobs in RTP than downtown Raleigh and I really don't see a big trend of people moving to downtown Raleigh and then commuting out every day.

I'm undecided on the issue. I'd invest in a house downtown, but I don't think I'd go for a condo right now with so many under construction. I worry that they will build more condos than the market can support and eventually prices might drop. I'm not saying it will happen, but the potential is definitely there.

12/31/2007 11:35:08 AM

I would not go for a condo simply because the cost of owning them is ridiculous and they are not practical for your average homeowner. Homes downtown are expensive, but when you factor in the condo fees and high price/sf of condos the home is a much more practical purchase.

They can build more condo buildings downtown until the market is flooded with them, but they can't create any more dirt to build them on. Buy a house and you own the land.

12/31/2007 12:08:32 PM

Dude ... Serious ... Driftwood Manor FTW!!

It was a great buy for my wife and I 3 years ago ... you are looking at 1200 sqft for under 65k, with 125 per month in HOA/Pool fees.

We sold ours to buy a home in RTP, but if I was to invest in a place for a single person, or married couple without kids, thats where I would be, since you can own your own place and pay less than rent for a 2 bedroom place.

Just my advice. Its just outside the beltline on western, so if you think downtown is going to go up alot, then you can leverage that bet without paying the price for expensive downtown condos.

12/31/2007 12:30:42 PM

They're expensive, but so is lawn care, exterior painting, a new roof, and all the other things that are rolled into the fees. I'd love to live in one if I didn't make so much noise all the time. Raking, cutting grass, and keeping the yard relatively clean takes way more time than I like.

12/31/2007 12:32:18 PM

buy west raleigh or even johnston county, that land is going to go way up.

1/1/2008 1:25:15 PM

Quote :

"I worry that they will build more condos than the market can support and eventually prices might drop. I'm not saying it will happen, but the potential is definitely there."

I bought a downtown condo 2 years ago and now I'm selling it to move back towards Hillsborough St. I'll make some decent cash off of it, but I mostly miss having a yard and am tired of living in a concrete cubby hole.

Most of the condos going up now have a clause in the contract that you can't sell it until 18 months after closing so that speculators won't flip condos while the builder is still trying to sell others in the same building.

1/1/2008 6:11:41 PM

http://www.wral.com/business/story/2240549/

Quote :

"Housing Downturn to Crimp Local Economy Generic New Home Construction / Housing Posted: Jan. 1, 2008 Raleigh — The new year could bring a slightly slower pace to Wake County's economy, as the turmoil in the national housing market could produce a ripple effect locally, observers said. "I think the first six to nine months of 2008 will be iffy. Once growth slows, it will feel like a recession," said Mike Walden, an economist at North Carolina State University. "I think the slow growth, the rise in unemployment, this is all generated by turmoil in the housing sector." The unemployment rate in the Triangle is 3.9 percent, which is below the state and national rates. But the economic downturn in other parts of the U.S. could prevent people from moving to the Triangle because they can't sell their homes. That could slow the local residential construction industry, which adversely affects the economy. "When you look at construction and all the industry that goes with it, that's 12 percent of our local economy. That's a big sector," Walden said. Home builders are preparing for the expected slowdown, said Tim Minton, executive vice president of the Home Builders Association of Raleigh-Wake County. "I think we have to recognize as a community that we're not going to grow at the same rate, and that may not be a bad thing in the sense that it allows us to catch up on things we're dealing with," Minton said. Wake County's public schools, for example, didn't grow as much as expected this year, easing some overcrowding concerns. Enrollment growth predictions are also down for next year. Walden said the slow start to 2008 should be followed by a strong finish."

1/3/2008 2:58:20 PM

I have a friend who works for one of the megabuilders in Raleigh. He said they are discounting spec houses like crazy right now and still having a tough time selling them. They knocked off $100k on one of their luxury homes to get it to sell.

1/3/2008 3:06:58 PM

If you think mowing the lawn takes too long, you need a riding mower with a beer holder.

1/3/2008 10:54:28 PM

So, I'm bored browsing craigslist and decide to look at the housing classifieds(http://raleigh.craigslist.org/apa/)....and notice that there are a ton of advertisements for rent-to-own houses. Sounds like a wonderful idea, fundamentally. But my instincts tell me there is some rip-off or flashy marketing scheme in progress here. Anyone know anything about these?

1/4/2008 12:23:06 AM

Basically rent-to-own is a way for unscrupulous landlords to pocket extra deposit money. The way they work is you pay a deposit with your rent-to-own contract that is non-refundable if you don't end up purchasing, and a percentage of your rent each month would go toward the purchase if you actually closed on it. Other than that its a lease.

A lot of people get caught up in this thinking its a wise move since the end they are looking for is owning a home. The fact is many people that do it will not ever be able to buy the home. If they were in a position to get a mortgage in the near future they would be taking one out now and buying outright.

Usually what happens is the tenant never ends up closing, they move out eventually, after falling behind on the rent and the landlord keeps all of the money and his rental property. It is more a psychological thing than anything else, an "option to buy" with a lease attached if you will.

1/4/2008 1:45:46 AM

how long would you think the market will stay low like this?

1/11/2008 8:27:58 PM

Quote :

"the tax write off alone should be enough incentive. if you do a 30 year fixed, the loan is going to be frontloaded with interest so very very little actually goes towards principal. 80-85% of your monthly payment is interest. personally, i think spending money on rent is the biggest waste of money ever. "

I'm trying to figure out how paying massive amounts of interest on a long term loan due to a small down payment is any worse than renting frugally (room mates).

Tax incentive doesnt mean you dont pay interest. You pay less, but you're not getting anything back.

Your house will slowly increase in value but what would cause you to sell a home? To get another? I wonder if its increased in value.....Hmmm...I wonder

The smartest thing to do would be to start with a large enough down payment, and get a room mate (or get married). I think the purpose of owning a home is too "have a garage", "paint the walls as you please", "fence the backyard and keep a dog" , "raise a family" , "no loud neighbors". I think the last thing on the list (outside of a home near a large body of water) is to make money.


[Edited on January 11, 2008 at 8:41 PM. Reason : .]

1/11/2008 8:40:34 PM

Quote :

"I'm trying to figure out how paying massive amounts of interest on a long term loan due to a small down payment is any worse than renting frugally (room mates). "

financial mindset of the '70's-'80's. it can be very beneficial if you do it right.

Quote :

"I think the purpose of owning a home is too "have a garage", "paint the walls as you please", "fence the backyard and keep a dog" , "raise a family" , "no loud neighbors". I think the last thing on the list (outside of a home near a large body of water) is to make money. "

again with the '70's-'80's



[Edited on January 12, 2008 at 2:56 PM. Reason : .]

1/12/2008 2:55:15 PM

Quote :

"I think the purpose of owning a home is too "have a garage", "paint the walls as you please", "fence the backyard and keep a dog" , "raise a family" , "no loud neighbors". I think the last thing on the list (outside of a home near a large body of water) is to make money."

Ideally you want both, you want all the things you listed, and a solid investment. Over time you pay off a house, renting you pay off someone else's house. If your goal is to retire in a comfortable house with no house payment (it better be unless you think your social security is gonna cover it ) starting as soon as possible is the way to go.

1/12/2008 3:05:28 PM

Dude, by paying off a house you're building equity (which you can borrow against!), if you rent you're just pissing away money. If I could afford it I would by a two-unit house I could comfortably pay for myself and then just try my damndest to keep the other half full and pay that sucker off hella quick!

1/13/2008 2:46:13 PM

Quote :

"how long would you think the market will stay low like this?"

until the mortgage industry recovers. Some experts think that could happen by the summer. I'm skeptical because the experts said 07 would be a year of real estate boom and we saw a monumental crisis.

a year ago ANYBODY could basically buy any house if they really wanted to. mortgages were easy to get. so millions of people who got houses they couldn't afford got foreclosed.

1/13/2008 2:51:33 PM

Quote :

"pay that sucker off hella quick!"

I was with you until that last part.

1/13/2008 4:52:27 PM

^^^

Every home equity loan I've every seen has had a rate that was somewhere in between "complete shit" and "oh god, I missed a credit card payment"

1/13/2008 5:37:47 PM

If you have good credit you could get one for 7%.

1/13/2008 5:50:04 PM

I think that is his arguement, which you helped support.

[Edited on January 13, 2008 at 8:03 PM. Reason : ,]

1/13/2008 8:02:52 PM

That you can get a home equity loan for 7%?

1/13/2008 8:04:20 PM

Are you fucking with me kid?

1/13/2008 8:43:00 PM

No. Something wrong with what I said?

1/13/2008 8:45:44 PM

You dont think someone with good credit could do better than a 7% loan?

I cant tell if youre fucking with me, youre an idiot, or both.

[Edited on January 13, 2008 at 8:47 PM. Reason : .]

1/13/2008 8:47:40 PM

No, I don't think someone with good credit could do much better than a 7% home equity loan.

1/13/2008 8:50:43 PM

Which , again (for the third or fourth time now), is a rate higher than that of a :

mortgage
new car
or
student loan


what else would you finance?

[Edited on January 13, 2008 at 8:57 PM. Reason : .]

1/13/2008 8:56:48 PM

ill be the first to admit i actually know nothing about student loans

1/13/2008 8:58:53 PM

You've got to be shitting me. Of course people don't use home equity loans for those things b/c you can get lower rates on those specific things elsewhere. Do you want me to make you an itemized list of other stuff you would possible want to use financing for? Lets start with

1. Home improvements

1/13/2008 8:59:28 PM

I think we can use the black and white copier for this job.

David0603 but the boss wants it in COLOR

1/13/2008 9:01:57 PM

2. Consolidating credit card debt

1/13/2008 9:06:32 PM

It doesn't matter if the rate if higher if it is over 30 years instead of 5 or 10 the payment will be scales less.

And just completely refinancing is much better then helocs anyway.

1/13/2008 9:38:20 PM

Buy in Apex.

1/13/2008 9:54:56 PM