Why you shouldn’t buy a house in 2009
As demand for payday loans continues to rise, demand for houses continues to fall.
Home prices are sinking lower and lower, and for some people that might make the “buy low” part of the old investment adage ring in their heads. However, MarketWatch has come up with a list of pretty compelling reasons why you shouldn’t buy a house in 2009. Here are a few.
Uncomfortable without a cushion
For any average American, the down payment on a house and other costs associated with buying will wipe out their savings account. MarketWatch argues that now is a dangerous time to be left without some extra cash.
“Given the recession and the fragile economy today … it’s wise to have a cushion to land on in the event you get hit with a financial broadside,” MarketWatch says.
You don’t want to end up needing payday loans in a financial emergency later because you spent your financial cushion.
Job insecurity
We have all seen the headlines every day announcing big layoffs at big companies as well as smaller ones. Perhaps you feel secure in your job because you are protected by a union contract or because the company you work for is doing well financially.
However, union contracts can change. As the recession deepens, more companies are being affected every day. Buying a home is an extremely long-term commitment. At this point not even experts know where the economy will be in a year or two years or even five years. Having a mortgage to pay off is not an ideal situation to be in if you lose your job.
Prices are still dropping
Home prices have been on the decline for some time now, but there is no sign of them leveling off yet. If you buy a home this year chances are it will depreciate even farther in value after you buy it. Granted, there is a good chance it will go back up later and you will end up making money in the long run. However, if you are looking at buying a home as an investment opportunity, it is best to wait until prices are at their absolute lowest.
So don’t run out and get payday loans to cover your fees so you can shore up a mortgage; wait it out.
You’re right on this one… buying a home is absolutely a long-term commitment. However, now is not the best time to invest in something like buying a new house. If you’re looking to make profit, this is clearly not the way to go.
To think a lot of what is happening in the world is because of the insatiable greed of a small number of people that were supposed to be trust worthy is truly staggering.
Buying a home isn’t a great idea if so many jobs are in jeopardy. Also, it’s good to take into account the fact that the housing prices still haven’t bottomed out yet, so regardless of the low initial purchase price, your investment is still depreciating in value, and no body knows just how long it’s going to take home values to climb back up to the point where people are making money on their real estate.
Wow. It’s hard to believe that prices could fall much more. However, I do believe that the first two points this article raises are very valid. Don’t put yourself in a difficult situation simply because prices happen to be low right now, ok?