OK, I’ve been considering buying a condo for a couple years now, and came very close last year but ended up renting instead. I had been planning on firing up my search again towards the end of summer in anticipation of my lease ending in the fall, but I’m also starting to think this is something I’d really rather wait a little longer on. Although I am in position where I could definitely buy something this year, there are also some reasons I wouldn’t mind waiting or putting it off, but the $8000 credit is a pretty big factor in my decision.
I guess my real question is whether the credit will really go away 12/1/09 like its set up now, or if there is the possibility it could be extended or replaced with a similar (even better?) deal. Has anyone heard anything about this, even speculation?
I’ll bet you dimes to dollars that nothing better is going to come up. If you have a steady income, now is the trifecta: low interest rates, a government credit, and real estate prices in the shitter. Get a fixed rate loan in a house that you’d be willing to live in for 5 years or more.
Hey, prices may drop and maybe by some miracle there will be even a greater government credit, but basically, it’s damn near impossible to hit real estate at the absolute perfect time. I’ve hit 3 pieces of real estate at really great prices, but I can only say that now with hindsight.
I just have to echo this. $8000 will, in most cases, pay for your closing costs, which can range from $5000 to $9000 or more. I had 8k saved up to buy a house and it just barely covered it. I also got into a house worth much less than ‘average’ because it’d been foreclosed on. I bought in January and wish I’d waited until now because prices are even shittier now (for sellers) than 6 months ago.
I think the general consensus among economists is that the economy will be on the rebound by this winter. If that is accurate, nothing changes, and the deficit remains very high, the chance of the credit being increased would be pretty low.
I think you should count yourself lucky that you’re even in a position to take advantage of $8,000 in free money.