Coworkers Buying
I'm known at work as the "housing bubble" guy, to the point of my coworkers rolling their eyes at me for the most part. Last week I overheard a coworker/friend telling someone he was thinking of buying. He hasn't told me, and I guess I know why, but has he heard nothing?
He's not the type to read the news or follow the markets, so I suspect he believes the real estate mantras. I don't know what his credit score is, but he spends money like crazy, so he's definitely not the type to save money. I hope, for his sake, he can't get a loan right now.
I work with a lot of really smart people, but when it comes to housing, most of them seem to believe the mantras that real estate is a great investment and never goes down, so buying is always better than renting, and thus it's always a good time to buy. Even right now. It's like talking to a brick wall. I don't know why I even try.
He's not the type to read the news or follow the markets, so I suspect he believes the real estate mantras. I don't know what his credit score is, but he spends money like crazy, so he's definitely not the type to save money. I hope, for his sake, he can't get a loan right now.
I work with a lot of really smart people, but when it comes to housing, most of them seem to believe the mantras that real estate is a great investment and never goes down, so buying is always better than renting, and thus it's always a good time to buy. Even right now. It's like talking to a brick wall. I don't know why I even try.
Comments
You may learn that they feel that they need a house for family reasons (dogs, kids). Encourage them to spend a lot of time looking for a home to purchase, carefully consider the neighborhood and schools. While each house is unique in its own way that doesn't mean that there is only one 'perfect' house for them, that this should not be a hurried decision.
What some shoppers may worry about is the risk of rising interest rates. If that is a concern remind them that the cost of a house decreases with rising interest rates. Yes, there was a era when interest rates went very high and few could afford to buy a house, but that was unusual. Also, as they save money for a down payment the interest they earn on their savings will increase.
There may be a good reason why they are shopping for a house, just tell them that next to the choice of a spouse or having a baby this is the most important financial decision they will make.
I won't be encouraging anyone to buy in this climate.
But like anything else , it takes work , time and effort. lots of people just dont put the hours in or learn enough about what they are doing.
If your buddy just "buys" a house, he may find it to be a short to mid term loser. With your help and time, he could at least be somewhat insulated against a down market.
OddVan, you may have faith that there's no wrong time to purchase real estate and that savvy people can always find good deals. And maybe you're right, but the rest of us have day jobs that aren't part of the real estate industrial complex.