"It's A Terrible Time To Buy"
http://patrick.net/housing/crash.html
This entire page is worthwhile reading even if you don't agree with the dire forecasts. Many compelling arguments here and I think it's true re: point 29. " ...manipulation of your emotions for profit."
As current "homeowners" we knew the risks and we knew in advance that our current place of residence was projected to be ~5 years which falls in the proverbial "1st home" statistics. So if we were asked "if you could do it all over again, would you still buy?" And despite the dire forecasts and the telling signs today, I have to admit it's still a tough decision due to that "emotional" element. You can call it manipulation or whatever you want but it's true that it is hard to put a pricetag on that "emotional" element. I really do like thinking/feeling like I am a "homeowner" (since technically, it's the bank's until I pay off the principal), being able to tinker without asking for permission, that feeling of maturity / adulthood that somehow comes along when you're paying through the nose on your mortgage payments, etc.
OTOH, I think one needs to honestly ask him/herself (+ spouse if applicable) what the limits are ==> pride of ownership vs impacts of financial risks/stress + long term financial objectives. And I think the URL above does a pretty decent job in really trying to get you to assess those limits.
I think it's ironic if a person is willing to put in the long hours to get that promotion and earn say 10-20% more, will scrutinize/hunt for weeks/months to save a few hundred on a car or that new TV, but is willing to risk substantially overpaying for a bunch of 2x4 s all because of that "emotional" element. Right at this very moment, I am feeling a little bit like I fall in this category and it is a bit disheartening. Dammit, maybe I'll go put myself in more debt right now by buying myself an HD-DVD player. Retail therapy!
This entire page is worthwhile reading even if you don't agree with the dire forecasts. Many compelling arguments here and I think it's true re: point 29. " ...manipulation of your emotions for profit."
As current "homeowners" we knew the risks and we knew in advance that our current place of residence was projected to be ~5 years which falls in the proverbial "1st home" statistics. So if we were asked "if you could do it all over again, would you still buy?" And despite the dire forecasts and the telling signs today, I have to admit it's still a tough decision due to that "emotional" element. You can call it manipulation or whatever you want but it's true that it is hard to put a pricetag on that "emotional" element. I really do like thinking/feeling like I am a "homeowner" (since technically, it's the bank's until I pay off the principal), being able to tinker without asking for permission, that feeling of maturity / adulthood that somehow comes along when you're paying through the nose on your mortgage payments, etc.
OTOH, I think one needs to honestly ask him/herself (+ spouse if applicable) what the limits are ==> pride of ownership vs impacts of financial risks/stress + long term financial objectives. And I think the URL above does a pretty decent job in really trying to get you to assess those limits.
I think it's ironic if a person is willing to put in the long hours to get that promotion and earn say 10-20% more, will scrutinize/hunt for weeks/months to save a few hundred on a car or that new TV, but is willing to risk substantially overpaying for a bunch of 2x4 s all because of that "emotional" element. Right at this very moment, I am feeling a little bit like I fall in this category and it is a bit disheartening. Dammit, maybe I'll go put myself in more debt right now by buying myself an HD-DVD player. Retail therapy!
posted by baconandeggs at 1:36 PM
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