Offer - Queue
I just got an offer on the house. It is probably not a coincidence that this was the first showing after we lowered the price from $255K to $246K. We got an offer of $242K, and we're countering with $246K. We'll see what happens. And all the buyer wants is for me to reinstall the dishwasher and clean the house.
I guess it's time to think about whether I want to buy a new place or not. I'd appreciate lots of input on this. Assuming I don't buy another place, the amount of money I'd have after getting out of debt would be somewhere in the neighborhood of $25K. And I just learned that I won't have to pay capital gains tax on that, since I've lived in my house.
|Date:||September 3rd, 2005 12:27 am (UTC)|| |
Well, I _was_ going to write a response here, but some jerk called and interrupted me ;)
Good luck! I hope they go for the counteroffer.
I wouldn't buy another place if I were you. While the timing of a housing downturn is open to debate, the recent discussions about bursting a housing bubble tend to be self-fulfilling in the medium-term. Consequently, you're unlikely to be earning any equity from another purchase, and so paying a premium to own something is liable to simply be a waste of money.
The blond and I debate this issue constantly for the past six months. Here was what we came up with:
If we were planning on living in a space for more than 5-10 years, it always makes sense to buy. Real estate is a sound investment. Yes, the housing market is a bubble which we believe is poised to burst, but I still believe, down the line, real estate is a sound investment if you can wait 10 years to sell.
On the other hand, if you don't know what is down the road in a few years and don't want to commit to an area, renting, in this market, is still a good option. Rents have not increased in about three years and while they are still high and ridiculous, they are not as bad as they were, comparatively, to five years ago.
If you choose not to buy a home, I would take a significant amount of that 25K and invest in something else. Something that can help you when we don't have social security anymore.