Primary res. buy now or rent ?

Question

Hello;

We need a primary residence- it's where we work- and it is in a market in Florida that is overvalued.  After reading and hearing multiple sources regarding how much longer this soft market will continue -many think well into 08 and early 09 I'm considering renting. That being said, what are the advantages/dis of renting or buying- say a foreclousre we have been looking into?

thanks

Shaun Greer · Answer

Please be sure to consider the tax benefits when making your decision to buy or to rent. I see people out there (some on You Tube) talking about how home prices have historically appreciate only 2% per year including inflation. The great thing about real estate is the tax advantages is offers.
Thanks,

N/A N/A · Answer

Family, house, job, friend, this decision is financial but it's a life decision as well- not strickly for profit

Jon Holdman · Answer

The New York Times has an interactive feature that lets you compare the monetary aspects.  Of course, you have to put in assumptions that are hard to guess.  And, it doesn't cover the intangibles like not having to worry about hanging pictures.

New York Times Comparison Tool

You may have to register to get to it.

Jon

Brendan O'Brien · Answer

To buy your primary.  Really.  Prices are down and rates are back down as well.  I'd be shocked if prices in most decent parts of Florida aren't above this level within two years.

Now one might say: doesn't that mean I should wait two years?  But we don't know exactly when the floor will be reached.  And, in the meantime, for two years, you're paying for someone else.

N/A N/A · Answer

Both good suggestions.  I am thinkin lowball offer

N/A N/A · Answer

Its all a matter of timing. Do you think prices will fall further, if so, how much.   If you feel they will fall significantly more, then you can either wait or make an offer on a short sale or REO property that reflects where you think the market will drop to.  Right now there are banks that are desparate to move property.  If you feel prices are close to botteming out and are not extremely picky, I would consider making low ball offers on distressed properties.  You will never know how low the banks will accept until you ask and it costs nothing to ask.  
The other thing to consider is if you plan to stay in the home for a long time.  A drop in the market value in the short term really doesn't hurt you unless you need to sell.    You may be stuck waiting a while, but in the end most markets eventually come back.  If you feel comfortable with the payments on a deal, like the house, feel prices are about bottemed out or will not drop much beyond what you paid, are not planning to move soon, then go for it.  I don't know your market, so you should get more specific advice on timing from a local who is an expert in your market.