Anyone else holding off on buying a home?

[diggitydot]

The house we're looking at for the next move is an AMAZING deal. As in, once it's finished (builder went out of business when house was around 90% done, leaving behind ALL the remaining materials and appliances), the place will be worth more than double the most recent asking price. A 5-bedroom, 4 bath 5,000sf house on 25 acres of prime mountain overlooking the river with views on all sides of the mountains. Asking price was $379K. It's been on the market off and on for 3 years, so it's not completely unprecedented to hope it will still be available when we're ready to relocate.

[MrsK]

I haven't read everyone's responses but here is my two cents. Buy a home when it works for you -- not when you think it will appreciate. If you want to be in the same place for a while --- like 7 to 10 years --- or you think you can hold on to a property for that long or longer, it may make sense to buy. If you really want to live in a certain area, keep pets, have autonomy over renovations and the like, take tax deductions, it may make sense to buy. If you can lock in a long term mortgage with a reasonable interest rate, it may make sense to buy. Owning a home is a long-term investment. Don't expect rapid appreciation. Real estate historically appreciates 2-4% over time with peaks and valleys. Just like any other investment, depreciation is not a "real" loss unless you sell low. But unlike other investments, you can live in your home. If you are moving in the next couple years, don't care for the property, are over-extended already, may have unstable health or an unstable marriage, or your looking for a quick profit, don't buy.

[oceanchild]

Our neighbors (largely identical house) just sold for $20K less than what we paid 2 years ago. In a neighborhood we didn't think could get hit any harder than it already had been. We didn't go in expecting to make money, which I think is the only way to go at this point. And I'm still not sure we made the right decision.

What MrsK said. We are hoping to buy our first home next year even though the area we hope to buy in has prices that are still skyrocketing (and the bubble will surely burst?) and doesn't even have the tax benefits that home ownership does in the US. But, we hope to find a place that is a long term investment and long term home for us.

[reciprocity]

we've held off in Chicago because of our own uncertainty as to how long we'll be here. we've discussed the possibility of buying when we move in 3 years for residency, but mostly because of the degree of control we want over our space (it is tough to find a landlord willing to let you bring in a 1300lb printing press...)