I received an email from “John” last week. Thinking it was a friend, I opened the mesage and it turns out to be from John Laing Homes. My email is registered with all the builders so it wasn’t surprising that John had some comments regarding the current housing market. See for yourself and let us know your thoughts.
To buy or not to buy? Read what Time says.
Dear Arcadian,
Are you in a wait-and-see mode about buying a new home? Famed Money Manager Peter Lynch has some good advice, “Ignore the headlines.” In a recent article in Time Magazine, Lynch reaffirmed to the author his view “that homeownership should be your first investment, since an owner-occupied home is nearly always profitable.” In fact, the article points out that waiting may not be a very good decision at all.
“Let’s say you are emotionally ready to be a homeowner. You have good credit, plan to stay put five years and have been waiting for the perfect entry point. It’s time to get serious – before an inevitable rise in interest rates wipes out your advantage.”
Time Magazine, 2/14/08“Risk always seems more acute when the headlines give you ulcers. But that’s exactly when you should think long term – and get off your thumbs.”
Time Magazine, 2/14/08The bottom line? You find the home you love and we’ll do everything we can to help you achieve your goal.
Best Wishes,
John Laing Homes
It’s never a good sign when you’re encouraged to make a purchase by the same party that will directly profit from the transaction.
That was a very strange comments underneath the letter. How can one say that it is “never” a good sign to be encouraged to purchase from a party that profits. What the heck is advertising? All advertising is to entice you toward whatever product they are selling. Further, it would be a very interesting society if the sale of goods and services never generated a profit.
I simply don’t get the point you are trying to make and I personally agree with Laing and Time Magazine. Do you always want to be a renter?
I never said I was against companies making a profit. That is just ridiculous.
My point is that we’re in the middle of the largest housing crisis in history and builders will say anything to sucker people into buying a home. Making a profit is perfectly fine, but lying to the public about the current market conditions is plain wrong.
AHB is not against buying a home. We are merely trying to get the facts out so people can make their own informed choices.
I think TheArcadian is just warning people to beware of financial advice that comes from companies that would benefit from a transaction at the cost of the buyers’ money. It’s similar to buying a car because the car salesman st the dealership said it was a good deal.
We all need a place to live and no one wants to rent forever, but I disagree with Time & JL. Now is not a good time to buy a home.
Perhaps I’m not of the same cloth as those on Arcadian, as I have been saving for quite some time in the hopes of one day owning property. Unlike many “pie in the sky” people who worked the buying system in hopes of becoming a land baron, my intentions are to establish security and actually pay off a 30 year mortage. I want an asset to pass along to my children and I don’t want a $4000 payment when I’m no longer able to work 60 hours a week. I am searching for a home in a safe community for children knowing that I’m going to live in house for 30 years…not 2 to 5.
If I’m on a long term investment track…it IS the time to buy. I love Southern California and don’t want to run away to Arizona! I live in one of the best climates in the WORLD. The opportunity to take advantage of decending prices and really low interest rates will not last for ever and neither will the inventory of new homes. Have you noticed that there are not many new homes in the pipeline?? Did you know that it can take up to 2 years to get approvals to build a new home in California.
t-byrd,
If you want a new home and can comfortably afford the right mortgage today, then I would say go for it. As you said, you can’t go wrong with a 30-year outlook and moving out of State is not exactly a option for everybody.
Although there will be fewer new homes coming online, I doubt we’ll see a shortage of homes for sale in Arcadia. My only hope is that interest rates will skyrocket and that will drive home prices down even further. Aside from paying less Property Taxes, you can always refinance when interest rates drop again (and they will fluctuate over 30 years).
I have also saved up for a while just to buy my first home and all the data shows that this is definitely not the right time. As long as prices continue to decline and renting is cheap, I don’t feel a rush to jump into the market.
Just to put the John Laing email in context, they are pushing people to buy homes in South OC where NODs, foreclosures and vacant new homes are adding up every month. Prices are coming down faster than initially projected so there’s no reason to think that the market will turn around any time soon.
Great to have you as a reader t-byrd. It’s not our intention to discourage you from buying a home. We just want to have an open forum for people to discuss the current real estate market. Many of our readers are also potential home buyers and I love to hear your thoughts and opinions.
And remember, True Believers,
PRICES HAVE NOWHERE TO GO BUT UP UP UP UP UP!!!!!