I've been waiting a couple of years for a good deal on a nice $250-$350K single story house on a 1/4 acre (or larger) lot) in the Clear Lake to Alvin area. I'm retired and would pay cash if I found what I wanted. Do you think home pricing will go down significantly due to the current crisis?
Good time to buy a house for cash?
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clearlake has not suffered enough for one , I did not even lose power or had any water in the street. Galveston is another story since it was a second home for people on the water. area that was hit hard are , glaveston ,san leon and west end of Galveston and Bolivar . if they are standing then the rental in area will be high . I would assume some people will move inland and away from hurricane as they did in Louisiana. boarder town in texas saw a price increase in excess of normal growth so homes in leagucity and claerlake should go up and not down by the time insurance pays the claim which is 60 days from now …
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it will be interesting to see how things get done
on one hand, as a buyer you want the lowest price
I think the prices of homes have been inflated then the loans on that value is what got the people.
If the buy-out plan works to save the institutions, then they will give them the value of the loan...any less and they have not solved the problem with the institutions. If a local institution has property at risk they would not want to sell to you at a loss if the gov is going to give them more.
What will be interesting to me is how they come up with fair market value. Too low and the institution looses money and then the tax's will need to be adjusted to reflect the lower value, so I don't see too many cities wanting to lose their cut of the gov pie.
on one hand, as a buyer you want the lowest price
I think the prices of homes have been inflated then the loans on that value is what got the people.
If the buy-out plan works to save the institutions, then they will give them the value of the loan...any less and they have not solved the problem with the institutions. If a local institution has property at risk they would not want to sell to you at a loss if the gov is going to give them more.
What will be interesting to me is how they come up with fair market value. Too low and the institution looses money and then the tax's will need to be adjusted to reflect the lower value, so I don't see too many cities wanting to lose their cut of the gov pie.
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In that price range, you won't find many starter home/sub prime distressed sales. Those will be a little less money around here. In your range, in our area, the market is still okay. That doesn't mean you can't find a good deal, but you'd have more leverage on the east coast or up in the midwest where the economy is softer and more homes are available in that range, but in distress.
That's just my opininon, btw.
That's just my opininon, btw.
Do you mean the Ike crisis or the mortgage crisis?
If the mortgage crisis, I think HOU is still doing OK due to high oil and gas prices....plus, in general, I'd probably take out a mortgage on the house instead of buying for cash. Not only is a mortgage (generally) cheaper money than you can get anywhere else, but if you spend the cash, it's gone forever..if you take a mortgage, the outstanding debts are settled against any assets you own, and if you have more debts than assets, your debts die with you.
I think the only reason you'd want to own the house free and clear is if you have an expensive medical condition and you want to get medicaid....or if you want to sheild assets from a lawsuit. It's my understanding that your primary residence is not seizable by the courts.
If you have the money to buy for cash, you probably have enough assets to get a mortgage even in today's economy.
I am not an investment advisor. I could be full of s***. Do not take advice from an internet message board seriously. Contact competant financial or tax advisors before you even wipe your axx in the morning.
If the mortgage crisis, I think HOU is still doing OK due to high oil and gas prices....plus, in general, I'd probably take out a mortgage on the house instead of buying for cash. Not only is a mortgage (generally) cheaper money than you can get anywhere else, but if you spend the cash, it's gone forever..if you take a mortgage, the outstanding debts are settled against any assets you own, and if you have more debts than assets, your debts die with you.
I think the only reason you'd want to own the house free and clear is if you have an expensive medical condition and you want to get medicaid....or if you want to sheild assets from a lawsuit. It's my understanding that your primary residence is not seizable by the courts.
If you have the money to buy for cash, you probably have enough assets to get a mortgage even in today's economy.
I am not an investment advisor. I could be full of s***. Do not take advice from an internet message board seriously. Contact competant financial or tax advisors before you even wipe your axx in the morning.
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If you are retired, you probably need to be careful about taking on long term debt (mortgage) unless you are absolutely sure you can earn more on the money than the mortgage interest.
In today's market there are no bets that are that good. If you have the cash, and a steady retirement income stream then paying cash is your best bet. IMO.
As for your original question, I bet if you are patient and keep your eyes open, there will be a few good deals in area and price range you are talking about in the coming months.
In today's market there are no bets that are that good. If you have the cash, and a steady retirement income stream then paying cash is your best bet. IMO.
As for your original question, I bet if you are patient and keep your eyes open, there will be a few good deals in area and price range you are talking about in the coming months.
I was referring to the financial crisis but the Ike crisis will certainly effect housing in the Houston/Gulf Coast region. I would think a cash deal might get a better price especially if buying a bank repo or from an individual with equity but with problems making the note. A builder needing quick cash might reduce the price on an inventory home. I'm looking for a deal that may never come around but it doesn't hurt to look.
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