That is the question of the hour from buyers of Palos Verdes real estate (and probably nationwide). Should buyers believe the doomsayers or the optimists? Today the LA Times has a very balanced answer to their question.
Reasons not to buy are mostly from economic forecasts, statistics and ratios. Reasons to buy look at the benefits of home ownership (you can’t be evicted, you can control the environment that you live in and looking ahead – you potentially can own your home free and clear/no monthly payments). Another important factor is the mortgage interest deduction and property tax deduction which saves big money at tax time. And if you are renting, you could spend less bottom line after income tax deductions. Gary Smith, a Pomona College economist is quoted as saying “Buying a house is risky, but waiting is risky too.”
Words of wisdom from the pros are: “Don’t count on price appreciation. Don’t expect a house to make you financially stable. Don’t buy if you think you may be moving soon.” Richard Green, director of USC’s Lusk Center for Real Estate, says “A house can be like a car, something you use and enjoy and have for a while. Whether it goes up or down in value may not be so important.”
