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[quote=Anonymous][quote=Anonymous]
    [quote]Anonymous wrote:Waiting is a recipe for disaster. Houses are appreciating at a 10 percent clip. On a $600k house, thats $60k per year. I doubt the OP will be able to get ahead of that snowball unless they purchase yesterday.

OP the truth is that there is a ton of money in this area pushing up prices, particularly for 'family housing'. In order to compete in this market you must become comfortable with the idea of being house poor to 'win' a decent house, because otherwise you will continue to be outbid by those who are willing to do that.

[b[How long can double digit appreciation continue? Not forever, but certainly longer than you afford to wait on the sidelines.[/b]

[quote]This is exactly the kind of mentality that leads to bubbles.

[b]No economist anywhere would say that a 60k increase a year in housing value is healthy.[/b] At that point, for the taxes alone, it becomes a better option to rent. [/quote][/quote]

Yet reality is not dictated by if something is 'healthy'. Irrational behavior can go on MUCH longer than you can wait. If you choose not to buy today, tomorrow the prospect of EVER purchasing in this area recedes a bit further into the horizon. Good luck with that strategy. :)[/quote]

If someone can't afford what it takes to get a house in this market in their desired location, then "strategy" is moot.  I think too many people are encouraged to take on loans that they really can't afford, to wipe out whatever savings they have on escalation clauses, et cetera, out of fear of being priced out of the market entirely.  But being completely house poor for the next couple of decades and possibly not even being able to afford to make necessary repairs a better prospect than renting indefinitely?  I'm not for sure.  I don't think it's ever a good idea to make big financial decisions based on fear.[/quote]

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