Question: Oh, but wait! Home prices might to go up fast enough to cover all >-:costs. Maybe, you feel lucky? I think that if everyone’s finances become >-:tied up by these huge mortgage payments it won’t be long before the >-:economy goes into a major slump.
Answer: It would be very frugal to buy something one needs at a price that is less than what others pay for the same thing. Just saying ‘this is an expensive property’ doesn’t mean that the purchase of it is not frugal.
Frugal does not mean cheap. Cheap means spending the least amount of money. Frugal means getting the most you can for your money.
That said, if it’s possible for them to make use of a smaller space or less exclusive neighborhood then they might be better off in the long run getting a less expensive home. I believe the original poster wrote that $170K was for a very small condo already and that the prices for local real estate were shooting up at unimaginable rates. They were asking for a prediction about future real estate market conditions in 2 to 3 years. Since no one can predict the future it’s anyones guess and Miss Cleo (even in jail) would be as good at it as anyone here.
This is my opinion. The real estate is already overpriced and the prices are still shooting up at unrealistic rates. Will this continue for 2 or 3 years? Who knows, but it’s a pretty wild gamble in my book.
It’s much safer to buy after a crash, when possible. You might not know how high that $170K condo is going to go but if you see it for sale at $60K or less you can figure it can’t go much lower. This assumes the crash isn’t due to a love canal or other such disaster.
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