Countdown to Renter’s New Year
Well it’s almost the New Year for the Renter.
Today is Christmas in that the government will officially stop buying Mortgage Backed Securities allowing housing prices to resume their downward spiral towards reality and affordability.
When this countdown timer reaches zero the government’s Home Buyers Tax Credit will expire at which point all renters should unite and scream “Happy Renter New Year!” that is unless we wake up hungover the next morning only to find out that the government has again taken away the punchbowl of renter justice.
Or are we going to be able to “Party Like Housing was Priced in 1999″?
Click to see the countdown timer
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April 2, 2010 at 11:04 pm
Hear Hear! I agree! I’m just thinking that if we wait to buy with cash when we retire, we also have to make sure we have just as much saved up to pay for our long term care needs! Also, buying a house when we retire would require some unique planning (e.g. single-level living).
April 2, 2010 at 2:05 pm
RANDY, MY MAN, YOU’VE DONE IT…..
There it is, right in front of us, I MEAN IT, the answer we should have been using all along. You’re right, rent while you are young and raising kids,
save as much as possible by a sensible lifestyle, and purchase in total, your retirement house when you stop earning. By paying cash, you will pay a much smaller amount than the normal doubling and tripling of cost of house via 30 years of mortgage interest.[Figure it out folks, multiply your mortage payment by 360 payments and subtract the cost of the house at purchase time and see what you will pay in interest, and I you might want to upchuck.]
April 1, 2010 at 9:38 am
I can say for a fact that I’ll only be a homeowner when it’s time to retire and I can buy that place in cash. Here’s why… during one’s working years, career mobility is the key to survival, thus the ability to change cities every 4-5 years for a better job is mission critical. However, one can buy that place for retirement and only have to pay some property taxes and maint, instead of renting for the golden years. And finally, just like today, one can take a reverse mortgage on the place, if the money starts to run out, at the age of 80.