Rent! You Can Always Buy Later for Less!

Mike.. These "experts" crack me up.. ok, they make me sick.. but, not every crystal ball tells the same story.

are rates good? check..

inventory aplenty? check..

sellers / builders getting more realistic? check..

renters gonna get tired of paying someone else's mortgage???? well, you get the point. :-)

Nick,

Thanks for being the first to comment!  I like your checklist!

Mike in Tucson

Nick's checklist is great and so is yours, Mike.  How many times do we have to say real estate is local before the talking heads get it????

Mike,

Well stated!  As a Realtor, and a landlord myself, I can win either way.  Maybe now is the time for us Realtors to load up on the product we sell - at some really good prices out there right now!  Nick's checklist is a great starting point for us to support our own industry!

These are not experts...they are idiots that NBC brings out to scare people into watching to Today Show. It is all about ratings...while destroy the economy with self fulfilling prophecy.

It is incredibly irresponsible to offer up a blanket statement like that.  We all know that there are markets where prices are rising, and rents are rising as well.  And, even in the markets looking at price declines, there are rent increases.  Don't think for a second that the landlords don't know that fewer buyers means more renters... more renters means less supply of rentals... less supply means higher rents.

Hi Mike.  I agree that this gentleman's assessment was way off, at least for the Tucson market.  Since the beginning of 2008, all of our offices are starting to see increased traffic.  Buyers are out there and the Tucson market is getting ready to turn around.  While it is true that it costs less to rent, I recommend that people who can afford it, go ahead and buy.  Real estate is an investment as well as a "roof over your head" and a person who waits until the market is already on a strong upswing before buying could cost himself thousands of dollars.

I also wanted to comment on the "three cards" referral method.  In order to avoid accusations that we are "forcing" clients to use a preferred lender, it is many Realtors' practice to give at least 3 referrals for any service.  This is what I do, but I am more than willing to expound on the choices and give the client an idea of how each mortgage broker works. So to your readers I would say, "Don't be put off if an agent gives you more than one choice, but ask questions to ascertain which loan officer's style would best suit your own and which one(s) work well with your agent as a team."  It is always good to compare rates, but remember that service counts too.

Hey Mike, here is my thoughts on this...

I think this is self serving for NBC, which is tied very heavily to CNBC, which is mostly stock market.  Did NBC have stock annalists on there to discuss the billions lost LAST WEEK  in another Wall Street Crash??

To put it in perspective, I have more investors calling me lately that are tired of the yo-yo of the stock market,and want to discuss buy and hold strategy in investment properties..Of course, these guys aren't making it to the interview room, because NBC doesn't have an all day Real Estate Show to promote!!

• I'm as busy as ever.
• My listings are getting shown.
• I'm finding wonderful homes for my buyers at great prices.
• I don't watch the talking heads!

Was this on NATIONAL TV??  They've been drinking the same koolaid Suze Orman did! OMG.

Your post is exactly what I've been saying on my blog... we need to be the mouthpiece for the industry rather than some talking head.

Keep up the great work educating the public and protecting them from the poor advice that the media is pumping at them.

Which reveals the fallacy of relying on talking heads for real estate advice.  They don't know what they're talking about. 

Next thing you know, the talking heads will be saying "The best time to buy was last year". 

Baiting the public with promises of uniformly lower prices nationwide is irresponsible.  Some areas may continue to drop a bit, but the facts suggest the bulk of the price reductions are behind us, even in areas that are still in trouble.

14 Billion years of history prove him wrong. Ask any caveman what his 1st house cost

Mike, I watched it this morning on NBC too. I was stunned with the comments and I do have a problem with that. He suggested that prices may fall even further. Is he speculating? or does he have a crystal ball - knowing for a fact that prices will fall even further?

My philosophy of home buying is quite simple: Buy when you are financially ready. It doesnt matter if the prices go up or down. Buy what you can afford when you can afford it.

1) We manage about 80 properties, and most of them ARE MONTH TO MONTH LEASES! WHY would you say that a tenant will HAVE to sign a year lease?

2) Many of our higher end properties have, right now, relatively attractive rents, NOT because the Owners are facing foreclosure, but because there is more competition at the higher end. This is a big advantage to tenants looking for this type of property.

3) Prices ARE still coming down in my area, for the most part, because appraisals are coming down.

4) Some people will ALWAYS rent. They prefer it, or they move a lot, or they have abominable credit and will never fix it. Buying simply isn't for everyone.

Mike - nice job on spinning what the talking heads had to say. I'd like to see them come live in the real world. Owning a home is more than just a dollar investment. It is a home for your family.

Mike, You are right that nobody can predict the bottom of any market, but you can negotiate a good price now.

Also, there ar tax benefits to owning, but renters don't get anything but "rent receipts."

Bill Roberts

Mike, don't ya just love the talking heads who probably have been versed for all of 10 minutes on the subject that they are "reporting" on.  Too bad that the talking head didn't give your advise.  You should look up his name on the website and send him a link to this blog post!!

We've got a conversation going!  Leslie, I have to call you about the Payson vs. Tucson market. 

Kate,

NBC didn't put a banner with his name under the "expert's" interview.  I wonder if he owns a home...  LOL

Bill,

Good point!  Thanks for coming by to comment. 

Kevin,

Too many "investors" thought otherwise, and that's a large part of the market shakeout.  It'll turn around.

Leslie,

Thanks for taking the time to present the opposite point of view as a property manager in Payson.  Month to month leases in Tucson are exception.  I agree with you that some people will always rent, and that not everyone has the financial stability or desire to own a home.  As to values declining, I understand that this is happening.  We have fewer buyers chasing more listings, and that drives prices down.  Like all cycles, it will reverse itself as buyers return, drawn back in by perceived bargains.

Loreena,

I like your philosophy!  Thanks for commenting.

Paul,

Now there's a niche I hadn't thought about.  Cave dwellers!  LOL  Thanks for commenting.

Eric,

The television "news" has replaced the corner bar as the place to hear drunken gossip!

Lenn,

News anchors used to pride themselves (a quarter century ago) on presenting impartial news.  No one, from CNN to Fox News, can lay claim to that high moral ground today.

Fran,

It's all about the conversation.  We've got to out-talk the talking heads.

Eleanor,

Yup!  National TV.  Who is Suze Orman?  LOL

Tucson Dawn,

• Succinct and to the point!  Thanks for commenting.

Mike,

 There's no question that it's self serving for NBC.  Your comment is thoughtful and well written.  Come back any time!

Robin,

I'm encouraged to hear what's going on in your office.  We really do have to get together for a cup of coffee.

Lane,

Rents are going up, but it hasn't caught the fancy of the news organizations yet.  Pretty soon we'll be hearing about another new crisis in housing--exorbitant rents!

Team DiMuria,

Irresponsibility is no impediment to any of the news organizations in the search for ratings and profits.

Vance,

Many professionals are doing just that.  Our book keeper's daughter is a realtor in Washington state, and she just bought an investment property.  She's had no problem getting it fully rented.

Lisa,

Thanks for commenting.  Nick's checklist is useful.

Mike in Tucson

Mike - Thanks for being the voice of reason.  It won't get you on NBC, but isn't it better to speak the truth?

Buyers would be foolish to "wait" out the market because they may not get the "deal" of a lifetime. Owning a home has so many advantages over renting making the difference in monthly payment worth it. Tax deductions is the biggest reason. Renting is an option but if able to buy why would anyone want to flush their hard earned dollars down someone elses toilet?

Mike:

Thanks for the post!  You are right about your assessment on the "talking head"'s motives.  I like your 3-step plan for buying a home as well.

MIKE- This is fantastic, timely advice!! So many buyers are hearing the opinion of the uninformed press and getting confused. This certainly clears the record and addresses the real issues. GREAT STUFF!!!

Mike- You had some pretty good points in there.....just the kind that some people forget!!!!

Kathy,

Thank you!  That's a good point.  LOL

Elizabeth,

Thanks for the encouragement.  Congratulations on your recent featured post!

James,

You're welcome.  Thanks for commenting.

Judy,

That's funny, but to the point:  ...flushing their dollars down someone else's toilet!" 

Marlene,

Ya, you betcha!

Mike in Tucson

Mike,

I just picked up a great deal on a home and find that renters are calling around the clock. I can rent it out at top market prices and have my pick of the best qualified tenants. When the populace is encouraged to rent, is the time for investors to jump in.

Sandy

Good advice, Mike. The talking heads seem to only give one side of the story.

Excellent post!  Now I know why it was featured.  Your clients are very fortunate to have you as their mortgage expert.

MIKE - This is all so logical, and yet the talking heads continue to spew misinformation.  I think that the biggest point that renters need to look out for now is the fact that they will be out in the street if a home is foreclosed upon.

It is very sad when pople listen to garbage like this.  In my area there are fewer buyers, which makes rentals harder to get because the tenants are staying put, and rents are going up, up, UP!  Why don't the "talking heads" talk about that? 

Mike,  Great post.  Real estate is local.  The "talking heads" are not local.  They're just generalizing and contributing to consumer doubt regardless of local conditions.

Well Mike, some people shouldn't buy a home.  Fortunately most people that can't afford to own a home will be screened out by the tightened lending standards. 

If a family IS in a strong enough financial position to buy, they shouldn't wait too long because these low rates aren't going to last forever. 

Rita,

Thanks for commenting.  I agree with you about the rates. Many people are sitting on the sidelines waiting for things to shake out.

Carol,

We don't have any talking heads in our neighborhood; how about in Wenatchee?  LOL

Barb,

The fact that rent prices are increasing isn't something the "heads" are talking about yet, but it's a sign of renewed sales activity to come.  That's a silver lining.

Adam,

Thanks for stopping by to comment.  It's got to be pretty cold in your neck of the woods right now.  Schedule a visit to Tucson!

Judi,

I have to get over to your blog to check out things in Oklahoma.  Thanks for the compliment.

Dan,

It seems they like to fan the flames of controversy.

Sandy,

Congratulations on your purchase.  Much success with your investment!

Mike in Tucson

Mike - while the prices may still be going down in some areas, the chances of waiting too long are a real thing to consider! Personally, I would recomment purchasing now and enjoying the reduced prices that we already have in the current market.

With as low as interest rates are, Arizona Houses are suddenly a whole lot cheaper. I'd say its a great time to buy now.

i don't think that i've seen a single newscaster that made me feel like they knew what they were talking about.

i'm in a "declining" market or so I'm told. I'm asked everyday about where's the bottom.

all i can tell anyone is where we are today.

today's a great day for buyers in southwest florida.

Jay,

Just like the stock market, there's no way of predicting the bottom.  We'll find it in the rear view mirror.

Alan,

Thanks for stopping by to advertise.

Bill and Barbara Jo,

At some point, the good deals will have been yesterday's, and people will bemoan the chance they had, if only they had taken it.

Mike in Tucson

These same experts never saw the housing bubble burst coming.