Home prices - real estate prices going

Where are the real estate prices going. We've been waiting for them to come down before trying to buy a home, and thought they did at some point, but realtors have told us that they are rising again. Any advice?

If you are looking to get an answer from a realtor or a mortgage broker, the answer is always buy now, finance it, and the sooner the better. Meaning of course the sooner the realtor and the mortgage broker get their commissions, the better.

Well, prices dipped a little, perhaps 10% in some towns, even Newton - you're quire right. But then they recovered quickly, because nothing really terrible happened to the economy, and people still had the money to buy, moving it from mutual funds into real estate after seeing the stock market indexes drop a bit. Latest statistics that I heard show that in the last 12 months both the prices and the number of homes sold went up. I do not track the real estate prices thoroughly, but I am also under impression that homes cost more than a year ago, and not only in Massachusetts.

We see a large number of purchases now, residences as well as rentals. More than last year, when we were doing tons of refinances and fewer purchases. If you believe that the masses are generally correct, then it means it may be a good time to buy, but no one will offer any guarantees. If you ask me - do what's right for you. Want to buy a home and think you're ready? Go ahead. Not ready - keep renting until you are. If you try to look for the absolute best bargain, chances are you'll loose, because that rarely happens.

Roman Shulman, http://www.CapitalFinanceWeb.com

Мое не профессиональное мнение: Real Estate- единственныи стак,которыи всегда растет. Когда медленнее, когда быстрее. Йето, пожалуи самая выгодная инвестиция. Я знаю, что мои дом подорожал в два раза за последние три года.Последнее крупное подорожание произошло из за низкиx процентов на моргич. Когда проценты повысятся, цены на Real Estate приостановятся в росте. Но тогда ваш моргич будет стоить гораздо дороже, так что вы ничего там не выиграете в финансовом отношении. Я бы покупала сеичас, пока проценты низкие, йето сйекономит вам большие деньги

Vlada, totally agree with you, nice to hear from a straight thinker.

Roman Shulman, http://www.CapitalFinanceWeb.com

Thanks for the compliment. I'm somewhat interested in Real Estate myself. Thinking to buy a rental property, but a little scared as I'd have to take out another morgage, but I'm slightly tight with cash.

Have you heard of cross-collateral, or blanket mortgage? You can use one collateral to buy another. YOu don't need to do anything with the first collateral - it is simply noted on the deed. If you have equity in the first, you can purchase the rental property with little or no money down at all in many cases.

Roman Shulman, http://www.CapitalFinanceWeb.com

Yes, but it will be a separate morgage in any event. Tell you the truth I hate to pay PMI too. So, I was planning to either to put 20% down, either take out two morgages 80-20 or 80-10-10. We need to add to it home ins and taxes. In the event I'm not able to rent out the property right away or in between tenants I'd have to make payments on my own. And that is what bothering me.

Sure. With 80/10/10 or 80/15/5 there are no PMI. Neither is with a cross-collateral mortgage if you calculate it correctly. The total LTV on both properties should be 80% or less. If you have good equity on the first property, that will be the case. Otherwise you add some downpayment to take LTV down to 80.

Roman Shulman, http://www.CapitalFinanceWeb.com

I see what you are saying. Well, I'm looking for now. The place where I live became quiet popular lately, and with low rates the prices are soaring. I also saw a cheap "fixer up" I coud pay cash for, need to get a good inspection on it. Decisions, decisions...

я не знаю, но по мне сдавать в рент рискованно. мой муж владел 3 апартмент домом. и одна квартирантка не хотела платить в течение 6 мес. ну мы по незнанию выставили ее веши. и что? суд, на котором она выиграла. и ей компенсация 400 баков

Да, печальный опыт. К частью, ето случается очень редко. В общем-то, миллионы людей здесь владеют домами и квартирами которые они сдают в рент без проблем. Не повезло с квартирантом, конечно... Better luck в следуюший раз.

Roman Shulman, http://www.CapitalFinanceWeb.com