Monday, January 14, 2008

Ah ....... the Truth Rings Out

This article might be the most significant housing article to come out of a Chicago news outlet. It seems that if "now is a good time to buy", then tomorrow will be better.

Silver lining: Good credit can earn home savings




January 13, 2008
BY J.W. ELPHINS Associated Press

The upside to a housing slump is cheaper homes. But many prospective buyers don't see bargains yet, especially as stricter lending standards qualify only the cream of the credit crop.



Read that first sentence over. Ok, one more time. CHEAPER HOMES ARE GOOD! It's a HOUSE PEOPLE! It is not an investment vehicle. An investment vehicle does not need new roofs, new hot water heaters, and upgraded electricity in fear or burning down the investment vehicle. A houses is a depreciating asset. They get old and break down. Then you have to spend money on fixes.



''The apartment dwellers and those just looking for a change are holding back, either afraid to buy right now, or are waiting for prices to drop,'' he said. ''Few are looking to upgrade until this whole thing shakes out.''

Renters Italo and Alexandra Subbarao are biding their time in what they call a pricey Chicago market. They want to buy a two-bedroom condo close to downtown by next summer, but are torn about what to do.

''If the prices came down a little bit more we'd certainly be more apt to go for it without hesitation,'' said Italo, a physician. ''But we know it's a significant investment. There is uncertainty in the market and that gives us uncertainty.''



It's good to know that there are a few people that are still smart with their money.

Read the rest of the article. It has a lot of good points.

2 comments:

Anonymous said...

Might want to throw a link to the real estate company you are displaying that map from. I think it's Dream Town Realty on that map's logo from what I can see.

Anonymous said...

yes, it is from http://www.dreamtown.com Not the best map but you get the idea.