Non Immigration - Sorry but need your advice.

O

Oct1RD01

Registered Users (C)
Hi,

I am under some family pressure to buy a house in NJ. The best people I know of to give a good advice are you guys.

If you have some experience, can you please tell me if this is a good time to buy a house (house prices are up, while rates are down). And what are the chances of these prices going down (central NJ) when the mortgage rates go to 8%?

Thanks in advance for your advice.
 
Hold buying right now, My guess once the rates go up...the prices will fall. Right now every body is inflating the prices around nj...especially desis (I am sorry to say that). Though you pay few hundread $ more if int rate increases, you will save on the over all home price.
Just my 2cent.
 
My thoughts are the same. The houses are much over priced. Looks like going to drop soon. Hold on for a few months might be a good idea. Just my opinion.
 
House prices in NJ will never drop, in worst case may drop 2-3% because this is what i heared from realtors -

* More people are migrating from west to east(specially NY),
* All asians think NJ as their mother land because of their big community, shops, etc...
* Apart from NY firms all Telecom firms are in NJ
* For one seller atleast there is 3 buyers(central NJ)
* 2br condo in NY = $450, nj = $170

An Indian realtor quoted that NJ is like BOMBAY- price will never go down

My opinion - i did the same thing(waiting..) for past 2 yrs..nothing worked out...everything went up. 200,000$ in 2001 is 279,000 now...
 
street_dog is right. NJ is a much sought after place. Prices will go down only marginally even if interest rates go up. You have to look at your own situation. If you can wait that might work out, but if you buy now you might save on taxes and build equity in your home.
 
I agree that there is an appreciation, especially in NJ for homes...
but I heard a similar boom in 1990's when a condomium (2Bed,2Bath) was sold for around 170K. In fact I know a freind who bought at that price in 91'/92' and sold for 187K last year. He saw the condo fluctuate @100K/130K during the 10year period. American economy is very volatile, anything can happen.
As somebody said, it depends on individual situation. But definitely never bet on real estate to always stay appreciated.
 
In long run, prices of real estate in NJ would always go up. Over a period, it might fluctuate but if your plans are to buy and live in it, then ASAP makes sense to benefit from tax breaks, stop paying rent, sense of contentment etc.

Scenario 1 - you hold off buying hoping rates will drop. Assume they don't drop over next 2 years then you kick yourself and are miserable because pressure to own won't go away and you have wasted 2 years rent.

Scenario 2 - you buy now and prices go down 15% in 2 years. As long as it is your house, then you are under no pressure to sell. Keep your house and eventually (in 5 or more years) next boom will come.

Scenario 3 - you don't buy and then prices go down and you buy at a really good deal. Then, my friend, you are lucky and wise :-)

I would say buy one ASAP (if you have lots of pressure and have the ability). If prices go up, you'll be happy. If prices go down, buy another one - bigger better and rent the first one :-)
 
You must log in or register to reply here.
Top