When not to buy
From today’s Globe:
Tony Annino of Belmont has seen about 50 properties in his home search and though he’s been interested in a few places, he’s in the “wait and see” camp.
“My fiancée and I have our eye on three places in Waltham right now. We’ve visited some of them two or three times and would probably make a move if the prices fell a little more,” he said.
Still, Annino, who is renting in Belmont now, said his job in the finance industry and his reading so much about the economy and the housing market have made him nervous about buying now.
“I’m definitely cautious,” he said. “We’re looking to buy a place primarily for the equity. I don’t want to buy something if we’re in the third inning of a nine-inning game here. If we want to upgrade in a few years, I don’t want to be selling the property for the same price I paid for it.”
Oh, that’s a problem.
“We’re looking to buy for equity.”
“I don’t want to sell the property for what I paid for it.”
If you are buying a home this year, or next year, or the year after, you shouldn’t expect any appreciation.
The only equity you’ll add to your home is the money you put toward principal.
Maybe appreciation, at the rate of inflation.
I do think prices within the city will remain stable, or should I say, stagnate. Just my guess.
If the numbers make sense to you that way, then maybe you should buy.
Source: Is it the right time to buy, or will prices go lower? Buyers have choice, leverage – By Kate M. Jackson, The Boston Globe