Bad time to buy real estate?

[CaliforniaMom]

I saw in the news today that the housing market is on the verge of another collapse. I was in the process of looking at homes to buy a home on a large piece of land so that I can have an organic garden. Considering the current housing market would it be better to keep my money in the bank and stay in my current small house with no yard?
I also fear hyperinflation of the dollar, so I know that keeping my money in dollars could just end up as worthless pieces of paper.
It seems like I could lose big either way...

[majinkoola]

I am in a somewhat similar situation. I have just about enough money to pay cash for a house in my area but I think in terms of real prices home values will go down. However, I am really sure inflation is going to be big. What I'm probably going to end up doing is getting a mortgage even though I dont need it (not a very big one at all really, house prices are really low in AZ). Then put the money in gold/silver. I'll make a double digit return on that while the interest on the mortgage is super low. Eventually (in 10 years tops, probably more like 5), the dollar is going to have lost so much value that I can pay it off easy.

[Romulus]

Markets vary by location. I would not be afraid to purchase property if the deal is right for you.

[brandon]

Now is a fine time to buy. Prices are reasonable in a lot of markets and interest rates are pretty damn low. If you really fear hyperinflation it would make sense to take the biggest loan you can possibly get. But I think your hyperinflation fears are a bit unfounded so don't bet money on it. If you plan on living in the house for a lot of years to come you really don't even need to worry about short term fluctuations of home values.

[cbc58]

Markets vary by location. I would not be afraid to purchase property if the deal is right for you.

seconded.

[sync]

If the deal looks good, then BUY. Real estate is a great asset to own long term.

[axiomata]

I too am looking to join the landed class.

[Mike4Freedom]

If hyperinflation happens and you have a fixed rate loan you will be fine. Also, it is a great thing to have a garden especially with higher food prices. House prices have a lot more room to fall. In california maybe not as much as other states. I can tell you one thing, having your money in a bank is the worst thing you can do because that can go to a value of zero.

[LibForestPaul]

Sales Tax
Heating Oil
Property Tax
Mortgage Interest Rate Deduction
Public Pensions
Unemployment
Economy

What does it mean...
unemployment - need to move because you are relocating, ready to take a 20% hit to get going and move?
Public Pension & property tax, cops need their money, and they want yours!
State budget woes, feel like moving, good luck.
Heating oil, electricity, upkeep, these aren't cheap...
What is the area where you will purchase trends (old vs young, blue collar vs white, government vs private) etc.

[devil21]

Overall RE is going to keep going down. You can buy now if you price in another 5% (or more) drop in value over the next couple years. Otherwise, you're going to be underwater soon after you've bought. Im waiting.

[ClayTrainor]

I'm personally saving and waiting, because when interest rates inevitably rise, house prices are going to fall. Of course RE trends vary a lot by location, but I'm confident there will be a bubble pop at some point in the not so distant future here in Canada, which should create some good buying opportunities.

That's just what I'm doing though, I'm not in any position to really give advice on this subject.

[agitator]

If hyperinflation happens and you have a fixed rate loan you will be fine.

I wouldn't be so sure. Bankers write the rules. Bought of judges enforce them. I bet they come up with something to get your house if we come to hyperinflation.

[axiomata]

I wouldn't be so sure. Bankers write the rules. Bought of judges enforce them. I bet they come up with something to get your house if we come to hyperinflation.

They better come for our guns first if they want to systematically break contracts without reprimand.

[Romulus]

I'm thinking rates are going to rise up fairly quick next year. I don't see housing prices falling much to compensate for the rising rates really.

Given that you have sound savings, real estate with a low interest fix rate loan is something I would put money toward at this time. Of course assuming its a good deal for the area.

[roho76]

If you can find a decent foreclosure it will be close to market value and probably won't go much lower. The only houses that are still inflated are people trying to sell their houses at an inflated price but they are still living in la la land. Just make sure you buy a gun because the people who owned the house before you may try and re-inhabit it.

[roho76]

I wouldn't be so sure. Bankers write the rules. Bought of judges enforce them. I bet they come up with something to get your house if we come to hyperinflation.

I heard lenders can "call" the loan and then you have to pay up. Isn't that the safe guard the financiers put in place to protect themselves? You might want to check you contract. I'm not saying it's right but they also have the armed thugs on their side, too so don't be so sure. I wouldn't get a mortgage at this point. Either pay cash or stay away is what I say. I plan on waiting out the market and then paying cash within the next two years. By then prices will be as low as they are going to get and you also don't have to worry about thugs coming to take your property.