The time to buy the biggest house you can get your hands on is right now. Even if you own a house and it is underwater -- you should bite the bullet and sell it. Get a bigger home.
Sound nutty? I lived in Texas in the 1980s. I watched people scarp up houses in Houston for $400,000 -- houses that the previous owners paid $1.25 million to own.
But today the opportunity is even better. In the late 80s mortgage interest rates were around 10 percent. Now? 4.5 percent.
Imagine 20 years from now, living in your nice big beautiful house, and you locked in your monthly payment way down here. On an inflation adjusted basis you will paying peanuts.
The time to borrow money is when interest rates are low. Most of you are probably too young to remember when mortgage interest rates were 15 percent. You probably are thinking it will never happen again.
What were you thinking and doing when the Internet stock bubble burst? What were you doing in 2006? Thinking about how you had to get a nice big fat, overpriced house?
Can't quite afford the down payment? Beg, borrow, steal -- do it.
A record 19.1 million homes stood unoccupied in the first quarter and the U.S. homeownership rate fell as the recession sapped demand for real estate.
The number of vacant homes, including foreclosures, properties for sale and vacation properties, jumped from 18.6 million a year earlier, the U.S. Census Bureau said in a report today. Households that own their own residence declined for the third straight quarter to 67.3 percent.