Comments on: Tucson Home Rent or Own http://www.tucsonazrealestateblog.com/tucson-real-estate/tucson-home-rent-or-own/ & What it is like living in Tucson Mon, 21 May 2012 16:13:57 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: David Smithhttp://www.tucsonazrealestateblog.com/tucson-real-estate/tucson-home-rent-or-own/comment-page-1/#comment-914 David Smith Tue, 06 Nov 2007 22:00:44 +0000 http://www.barbaralasky.com/tucson-real-estate-blog/tucson-real-estate/tucson-home-rent-or-own/#comment-914 Chris, If you read this blog very often you will find that we never encourage people to buy what they can not afford. As far as that goes, we never encourage them one way or the other. We do counsel buyers they should never buy more than they can afford. We have buyers at all levels, some are first time, some are investors, some are second home purchases, in each case there are different financial circumstances. One size does not fit all, but as a general rule what you say about not buying unless you have at least 20% down is very wise. I would never buy with less than 20% down. However, your last statement is almost borderline, first you make a statement then almost indicate we would do a dis-service to clients, that is something we would not, will not, and do not do. Chris,

If you read this blog very often you will find that we never encourage people to buy what they can not afford.

As far as that goes, we never encourage them one way or the other. We do counsel buyers they should never buy more than they can afford.

We have buyers at all levels, some are first time, some are investors, some are second home purchases, in each case there are different financial circumstances.

One size does not fit all, but as a general rule what you say about not buying unless you have at least 20% down is very wise. I would never buy with less than 20% down.

However, your last statement is almost borderline, first you make a statement then almost indicate we would do a dis-service to clients, that is something we would not, will not, and do not do.

]]> By: Chrishttp://www.tucsonazrealestateblog.com/tucson-real-estate/tucson-home-rent-or-own/comment-page-1/#comment-913 Chris Tue, 06 Nov 2007 15:39:39 +0000 http://www.barbaralasky.com/tucson-real-estate-blog/tucson-real-estate/tucson-home-rent-or-own/#comment-913 David, Actually, this is a false analogy. The problem here is that with the stock, you haven't taken on the risk of borrowed money. The gains that you realize in the housing market are only realized if you can sell it and get out from under the loan. I agree that buying a house is ultimately better for long term wealth, but leveraging that much isn't the way to do it. $10,000 isn't nearly enough cash down to mitigate the risk of the borrowed money. You need to put down at least 20%, and pay it off as fast as possible. That makes for a sound economy. So, if people don't have at least 20% down, then they SHOULD NOT buy a house right now. They should wait and save. I hope David, that you do not encourage people to buy a house with less than 20% down. If you are doing so, then you are contributing to this whole mess and not really helping your customers. David,
Actually, this is a false analogy. The problem here is that with the stock, you haven’t taken on the risk of borrowed money. The gains that you realize in the housing market are only realized if you can sell it and get out from under the loan.

I agree that buying a house is ultimately better for long term wealth, but leveraging that much isn’t the way to do it. $10,000 isn’t nearly enough cash down to mitigate the risk of the borrowed money. You need to put down at least 20%, and pay it off as fast as possible. That makes for a sound economy.

So, if people don’t have at least 20% down, then they SHOULD NOT buy a house right now. They should wait and save.

I hope David, that you do not encourage people to buy a house with less than 20% down. If you are doing so, then you are contributing to this whole mess and not really helping your customers.

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