NewYorkCityBoy, I disagree that my situation is irrelevant. The fact is, when I bought my first house, real estate seemed expensive, but I bought anyway. I didn't try to time the market. No one can predict the future. If you try to outsmart the market, the market may just outsmart you, instead! Rather than trying to "time the market," you should be planning ahead...to your retirement. Answer one question for me, please: When you retire, would you be better off having a house that was paid for as opposed to paying rent to a landlord?
This is from today's IBD, talking about the fall of the US dollar: "A weak dollar would disrupt world trade and finances and further hurt economies abroad. That damage and uncertainty would spark a flight to quality. In the past, that has meant foreign capital rushing into dollars. In an odd twist, a weaker dollar sows the seeds of a stronger one down the road. Also, foreign governments would urge the U.S. to step in, or they'd step in themselves, to shore up the buck. In fact they'd have a stronger incentive than the U.S. government to intervene. The U.S. is the best customer for many countries' exports. They'll react quickly to any threat to that business, experts say. Expect a series of big rate cuts abroad - not to spur domestic growth, but to stem the local currencies'gains against the buck. The downside? Such cuts could set the stage for a worldwide inflationary surge. But with economies tottering around the world, that may be the least of policy-makers' worries right now."
Real estate is cyclical and now may not be the best time to buy if you are a first-time buyer. However, real estate seemed expensive when I bought my first house, too. Nationally, almost 40% of homeowners own their homes free and clear. Another 30% owe very little on their homes. Housing may cool, but it won't crash. |
