Get out of the renting trap if you can.
Before the economic collapse a few years ago everyone was clamoring to buy houses. Why wouldn't they if housing prices ALWAYS rise? It is very important to take a broad look at the news that is written over the coarse of a week or so. Doing so gives a great picture as to the general market conditions and what is going on.
At the bubble top you will notice many or most articles raving about the large gains or fortunes being made in the areas in question. There will likely be TV shows about the subject showing how seemingly regular people make fortunes off of it.
When everyone has already jumped in, there is little room for the given assets to grow, but there is a lot of room to fall. The particular asset that makes up the bubble is so hot that it moves vigorously, being traded at high frequency and exchanging many hands. Once it gets to the point where even noobs are making a fortune, the bubble is doomed to burst.
The bubble will burst as they all do and on the way down take another look at those headlines. They will all likely project tremendous fear. You will know the bottom is likely near when the fear subsides slightly and only a feeling of remorse or despair remains.
Just like how when everyone knows that something is good, there is no more room for growth. Well, at the bottom of a market crash there is ONLY room for growth. Right now we are in a period where the despair is dying down, but people are still either too scarred or too poor to do anything. Many people want to buy but cant because they cant afford it.
Most people still say that home ownership is best but there are some that say that it might be better to rent which i completely disagree with. the main reason they say this is because you have to pay more up front and you have to actually maintain and deal with all of those other housing issues.
While it is true that when you first buy it is probably going to be more expensive. Those monthly payments will go down eventually when you compare them to the rapidly rising cost of renting. You also will likely need to fix many things after you first buy. These costs will subside after while if you maintain your property properly.
You will build up equity in your home that you can use to remortgage and do what you want with. This will give you some flexibility later in life. At a market bottom you can still probably rent for cheaper than you can buy. The difference is that when you rent, your landlord will attempt to raise your monthly rent by $50 or so every lease renewal.
But, if you own your home and assuming you have not taken out any more mortgages, you will pay roughly the same amount year in and year out (especially in California). Because your debt payments will always stay the same (depending on your type of loan). You will only need to pay the increase in associated fees.
Over the course of your lifetime you will likely have paid off your home loan or built up considerable equity. If done right, your payments will likely have stayed almost the same over the course of your ownership. However, had you been renting the entire time, you would have no equity and you would likely be spending a lot more on rent.
At the bubble top you will notice many or most articles raving about the large gains or fortunes being made in the areas in question. There will likely be TV shows about the subject showing how seemingly regular people make fortunes off of it.
When everyone has already jumped in, there is little room for the given assets to grow, but there is a lot of room to fall. The particular asset that makes up the bubble is so hot that it moves vigorously, being traded at high frequency and exchanging many hands. Once it gets to the point where even noobs are making a fortune, the bubble is doomed to burst.
The bubble will burst as they all do and on the way down take another look at those headlines. They will all likely project tremendous fear. You will know the bottom is likely near when the fear subsides slightly and only a feeling of remorse or despair remains.
Just like how when everyone knows that something is good, there is no more room for growth. Well, at the bottom of a market crash there is ONLY room for growth. Right now we are in a period where the despair is dying down, but people are still either too scarred or too poor to do anything. Many people want to buy but cant because they cant afford it.
Most people still say that home ownership is best but there are some that say that it might be better to rent which i completely disagree with. the main reason they say this is because you have to pay more up front and you have to actually maintain and deal with all of those other housing issues.
While it is true that when you first buy it is probably going to be more expensive. Those monthly payments will go down eventually when you compare them to the rapidly rising cost of renting. You also will likely need to fix many things after you first buy. These costs will subside after while if you maintain your property properly.
You will build up equity in your home that you can use to remortgage and do what you want with. This will give you some flexibility later in life. At a market bottom you can still probably rent for cheaper than you can buy. The difference is that when you rent, your landlord will attempt to raise your monthly rent by $50 or so every lease renewal.
But, if you own your home and assuming you have not taken out any more mortgages, you will pay roughly the same amount year in and year out (especially in California). Because your debt payments will always stay the same (depending on your type of loan). You will only need to pay the increase in associated fees.
Over the course of your lifetime you will likely have paid off your home loan or built up considerable equity. If done right, your payments will likely have stayed almost the same over the course of your ownership. However, had you been renting the entire time, you would have no equity and you would likely be spending a lot more on rent.
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