Tuesday, December 16, 2008

A Buyer's Market

The German and I dream of one day buying a summer home in my home state of South Carolina. We would love to be able to spend 6 to 8 weeks a year relaxing in the sun, eating seafood and walking on the beach. When you are in your early 30's dreams like this are most definitely out of reach, but I am beginning to see a glimmer of hope.

Three years ago, the German and I saw the housing bubble bursting in Michigan. The development where my dad and Mom-squared bought a house stagnated. Nothing new was built. Houses stand empty and brand new (beautiful!) homes are losing value. As we drove around the mid-west, we saw this everywhere!

Now, bundling seems to be the least of our worries. Turns out that there are even more fishy loans out there. In the report below, the reporter projects that 8 million Americans may loose their homes in the next 4 years. Part of me feels sick about the thought of all those people on the street. But part of me is also salivating at the investment opportunities. Both of us have stable sources of income. The German is in no danger of loosing his job, and the demand for English teachers seem to be going up.

Is it so wrong for me to think that the opportunity to buy a second home is not too far fetched? It is wrong to want to get something while the getting is good? Don't worry. The German and I are not foolish people. In fact, the German is EXTREMELY cautious when it comes to money. I think he would only let me buy a home in the U.S. if we could put 50% down. Time to start saving my milk money.

8 comments:

Snooker said...

I say that if it seems to be a solid investment and if you can afford it, go for it. Get it while the gettin's good as my father would say.

christina said...

Yep, I KNOW what Germans are like with money. I'm married to one too. :-) I think buying a second home is a fantastic idea if you can swing it, we've talked about it as well but the area we'd want to buy in is still waaay too expensive.

P.S. School summer holidays are only 6 weeks here, unfortunately. We always leave on the first day of holidays and come back two days before school starts again so the kids don't fall into a coma during class.

Maria said...

Don't hide it in the cookie jar. Everyone knows it's there. ;)

Rabble Rouser said...

You should definitely go for it if you can. Forecasts are showing that the south should see the inestment boon the west coast saw within the next 10 years. Besides, then I can totally come and visit you :-)

Anonymous said...

The market is still good here in Charleston, and financing here is also good. Home values have remained stable here! Our house appreciated an additional $3000.00 in the past year....more than double the amount that we purchased 20 yrs ago!!!!


love ya mom

Carrie said...

Dude, that is NOT an unrealistic goal for someone in their 30's...seriously. You should take a look in OBX for a beach house too. There's one right down the street from my house...very good price and excellent condition.

Mike B said...

The Partnerin wants me to make a bid on some more beach property while the getting is good ... so there are still some Germans willing to throw caution to the wind.

I say go for a beach-house too.

Berlinbound said...

SC is my home as well - although I spent more years in New York. Hope you have a great time in the Palmetto State.