5 Reasons You SHOULD NOT Buy A Home In This ECONOMY

Understanding the real estate market is crucial before making significant investment decisions. In this video, we delve into the top five reasons why purchasing a home in the current economic climate could be a risky move. From fluctuating interest rates to unpredictable market trends, learn about the potential pitfalls awaiting uninformed buyers. Equip yourself with knowledge, hear from experts, and navigate the complexities of homeownership in today's economy with confidence.

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Kristina Smallhorn
PO BOX 1271
Prairieville LA 70769
#housingcrisis #housingcrash #kristinasmallhorn

eXp Realty LLC,2900 Westfork Dr. Suite 401, Baton Rouge LA 70817
225-246-1812,Office [phone] ext# 149
Kristina Smallhorn is a licensed REALTOR® with the state of Louisiana, License number 0912122918
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[Riggsnic_co]

Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.

[patriciadennis]

One thing that gets looked over..HOA... they can make your home unaffordable just like that

[SV-nkwe]

I bought a house in 2004 on the interest only loan. I was newly divorced and didn't make a lot of money. It allowed me the chance to own a home on my own. I was responsible and refinanced to a better interest rate before the reset. The crash happened and my house value plummeted. I was told to walk away by brighter financial minds than myself. I decided to stay as my rent would have been more. A decade later and I own another home but still have that home as a rental. It's almost paid for and the value is much higher than when I bought it. My advice is to look at why you want to do this, how long, and can you afford it. Make sure it's not an impulse buy. Make sure you are responsible enough not to get in over your head. Make sure your reasons are valid. If you can buy a home and the house payment is cheaper than renting, why not buy? Put the difference away for future upkeep. She makes valid points but in my case the interest only loan allowed me the chance to get back up on my feet. I thiink I am a rare exception to what happened.

[PlasmaBurns]

I searched MLS for homes around my area. Over 100 are in bankruptcy/foreclusure. Not only are people struggling to find a home, people are struggling to keep them.

[thetruthalwaysscary]

I do real estate since 1998...I could write a hundred reason why not to buy now. The number one reason is NOT the interest rate but the fact that homes are excessively overpriced. In 30K median income neighborhood they asking 350K to 400K for a house is ridiculous.

[karlabritfeld]

I haven't had any mortgage since i paid off my house in 2007. Sold and moved to the east coast, bought a house free and clear in 2017. Sold and bought my dream house in 2020, mortgage free. Best feeling in the world, no mortgage.

[PlasmaBurns]

Ive saved up over 50k for a down payment, etc. very high credit but 7% interest makes everything unaffordable and home prices have gone up 100% in the last 10 years. I HATE throwing money away in rent but...

[Erica-yrgf]

I’m a retired realtor and so glad to see someone conservative is speaking out. buyers need to aware of these.. home buying and ownership is glorified. There’s so much much more. Thank you for speaking out.

[VeganRod]

Our first house, over 33 years ago, was a major mistake.
We were young and naive, and didn’t know the problems of living in a borderline community.
There was constant crime, drugs, gunshots, and vandalism.
After a few years we could no longer take it, and just wanted out.
We would have been so much further ahead had we continued to rent and taken more time house hunting.
The money we lost decreased the amount of money we had to buy the next house, and the next house after that.
We’re financially fine now, but it has taken a lifetime to recover.
Take your time when buying, and check crime statistics specific for your house and neighborhood.
Buying the wrong house is worse than continuing to rent.

[bobbymainz]

With rates climbing like never before in ’23 coupled with uncontrollable inflation, and our own mortgage at now 7.5% what are the best alternatives/strategies for avoiding a crunch and maximize my $600k savings other than moving in to an RV with my two kids and wife.

[ravenkitty]

There has to be alternatives to renting. There just has to be.... Greed in a free market society is destroying so many young people's abilities to have families of their own. Without successive generations, the American way of life, the dream of education, career, home ownership, marriage, family, Is just gone.

[nancyloomis]

I've been through foreclosure and bankruptcy when I lived in FL back in 2008. I simply could not sell my townhouse unless I could virtually give it away. I hated Fl and moved to Md in 2008(where I lived before and had family there) and live there now. I made so many mistakes but was able to get re-established, but it took a while and took a toll on me. I remarried in 2014 and am now now retired at 66. I was lucky in many ways. But don't rely on luck ! Do not buy a home unless you know you can afford all the other costs that come with home ownership, especially if your loan is going to update to a much higher payment anytime in the near future. Listen to people who can advise you. Foreclosure & bankruptcy are no joke and impact you for a long time.

[johnatyoutube]

The best advice EVER given on homebuying. Listen to this twice if you're considering buying your first home. And make a list or spreadsheet of ALL of your costs. And then add some for unexpected problems like appliance repair and replacement, pipe breaks, rotten fencing, decking, and framing and trim, insect and vermin damage and infestation, and tree and bush removal. You'll get all of these and more. Promise! A whole house warranty helps soften the blows of many of these, but not all. You have to have some money put away at all time for these surprises and you have to create a reserve fund that you grow over time for planned replacements like your roof, carpet, painting, furnace and air conditioner, water heater, appliances, faucets, toilets, etc. All of these things have an expected life. And they're shorter and shorter for all electrical appliances because quality control and longevity have gotten bad.

And don't underestimate the cost of maintaining your home and property. It's expensive. And necessary to maintain your home value, your family's safety, and your neighbors' respect because what you do or don't do affects your entire community. Buying a home is like getting married along with an extended family. It's a huge commitment - in sickness and in health.

[oakmars]

I was tired of living in a mobile home so I bought a house last year and pretty much regretting every second of it, I can't wait to sell and get back to living

[nofakenews]

I want to know how people can afford to buy a house in California. The rates for Mortgage is an average 4k a month with rates as close to 8%. Like who can afford to buy a house in Cali?

[bauttiet.h.u.g.]

Buyers need to start making offers that are 10%-20% lower than the listed price.

[Constellasian]

My Mom fell into this type of loan before the 08-09 crash. I can't believe loans like this are still allowed to exist.

[JohnsDeb]

Probably TMI…
I retired 6/2023. I sold my townhome with a 2.9% rate & paid off debt. I downsized, bought a condo, 6.6% to be closer to one of my daughters. Now in my new place (3 weeks) I’ve already made unexpected repairs😩
I feel now as if I made a huge mistake. My initial instinct was to rent for a year because I wasn’t sure what I wanted to do. I wanted a tiny home but that meant moving further away from my daughters because VA is not tiny friendly. However, I would have been debt free.
I kind of felt pressured to buy & went over my budget because housing wouldn’t even stay on market that long. Realtors telling me you can refi when rates go down. 🥺 which doesn’t make since for a retiree😢

[onyoutube]

Sound, wise advice. It's always sad to learn that people make uninformed, naive decisions on such a huge life decision as buying a house just to learn they will be having to sink so much more into repairs. The whole dynamics of a property can be assessed. Even a reasonable fee to get qualified contractors to give an assessment will help you make an informed decision.

[eechaze]

One of my concerns also actually a major concern is the cost of renting. So if you rent for 7 years at say $1800 per month (could be much higher) you will have paid $151, 000 in rent with really nothing to show for it. If you were paying mortgage hopefully you have some equity in the home by that time depending on location. Losing that much wealth on rent is scary.