Quote:
Originally Posted by fazman
Do you have a way to create more land on this rock we call a planet? If not... then land is a scarce resource. Even if markets crash, it will skyrocket again... because all markets are cyclical.
As long as you can afford the home comfortably and can make the payments for the commitment term... you should be fine to ride out any crash. Your home is an investment you can live in (unlike stocks... you can't live in them). Plus you have protections even when you can't make payments to still live in the home until you get the boot by the court.
The key is to buy a home that you will one day move out of and can rent to someone else as an income property (That way your renter makes your payments for you).
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I realize that land is limited. However, there is plenty of land outside of the major metropolitan areas. So while prices are going up here, they are more stable elsewhere. I think that as prices shoot up, it will drive people to move elsewhere (e.g. denver or houston where prices are much lower). As more people move out of high demand areas, prices should stabilize.