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goldsummer

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Jan 20, 2013
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I'm a new attending and have not yet bought a house. I'd like to, but flexible as to when I do. I'm ok in my current situation.

What I like about buying a house now:
- I can finally afford one I like
- interest rate at historic low

What makes me hesitate:
- Price of houses keep elevating, many houses being built and getting bought due to low interest rates driving up house prices further
- Uncertainty of economy, pandemic, new administration, etc


My worry is that I'll buy a house that's currently worth 350k, and if the housing market crashes like it did 2008, it may only be worth 180k. It would obviously be more optimal to buy during a crash... This is hard to predict of course..

What do you think?
 

dpmd

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I'm a new attending and have not yet bought a house. I'd like to, but flexible as to when I do. I'm ok in my current situation.

What I like about buying a house now:
- I can finally afford one I like
- interest rate at historic low

What makes me hesitate:
- Price of houses keep elevating, many houses being built and getting bought due to low interest rates driving up house prices further
- Uncertainty of economy, pandemic, new administration, etc


My worry is that I'll buy a house that's currently worth 350k, and if the housing market crashes like it did 2008, it may only be worth 180k. It would obviously be more optimal to buy during a crash... This is hard to predict of course..

What do you think?
If you buy a house you can afford and don't need to sell it then you don't have to worry as much about prices crashing. So the bigger question is can you afford it and what is your job security like (so you can continue to afford it)
 
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Saddleshoes

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The interest rates are at historically lows right now.
When you consider a house as a 15-20-30 year investment, it is going to be hard to beat these rates at this moment in time.
 
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dr doze

To be able to forget means to sanity
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The interest rates are at historically lows right now.
When you consider a house as a 15-20-30 year investment, it is going to be hard to beat these rates at this moment in time.
Except....As interest rates rise...Homes become less affordable because mortgage payments go up.
 

dr doze

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Which is exactly the reason to buy now! When a home IS affordable.
(Wasn't that the point of the OP?)

I was referring to in case you want/need to sell in a few years. If you are confident of dropping anchor for a long time, a home purchase with a mortgage is a very solid choice right now.
 

redfish955

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Apr 10, 2018
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Tell us more about your background and location.
How much is an apartment with hip young professionals that you would enjoy networking with? Maybe something near a fortune 500 headquarters.
Do you have a close group of friends, siblings, or ect. that you can fill the house with?
Are you in a new city and need to make friends?
Do you need to find a spouse?
Will have have kids in the next five years and need a house?
IMO if you don't have a close group of friends you will have the most fun at wherever the residents are living as long as it has good amenities. Most of the upper end apartments will be filled with couples and the singles will be in the more affordable hip buildings with pools and rooftop lounges, and etc.

What ever you do make sure you can save enough for retirement. Assume an 8% return annually and you will need about 2.5 million to retire at 60.
 
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EdgeTrimmer

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May 26, 2018
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I'm a new attending and have not yet bought a house. I'd like to, but flexible as to when I do. I'm ok in my current situation.

What I like about buying a house now:
- I can finally afford one I like
- interest rate at historic low

What makes me hesitate:
- Price of houses keep elevating, many houses being built and getting bought due to low interest rates driving up house prices further
- Uncertainty of economy, pandemic, new administration, etc


My worry is that I'll buy a house that's currently worth 350k, and if the housing market crashes like it did 2008, it may only be worth 180k. It would obviously be more optimal to buy during a crash... This is hard to predict of course..

What do you think?
How long have you been in the current job? Do you have partnership or tenure (depending on private practice or academic)? Lot of people including physicians end up changing first job. There will be some price correction in near future but no one knows when and how much. I don't see interest rates changing that much in 2021.
 

stillpremed

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Feb 23, 2003
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I'm a new attending and have not yet bought a house. I'd like to, but flexible as to when I do. I'm ok in my current situation.

What I like about buying a house now:
- I can finally afford one I like
- interest rate at historic low

What makes me hesitate:
- Price of houses keep elevating, many houses being built and getting bought due to low interest rates driving up house prices further
- Uncertainty of economy, pandemic, new administration, etc


My worry is that I'll buy a house that's currently worth 350k, and if the housing market crashes like it did 2008, it may only be worth 180k. It would obviously be more optimal to buy during a crash... This is hard to predict of course..

What do you think?
Live like a resident for a couple years and when pandemic uncertainty subsides + you are more established as an attending then you can decide to buy a house vs continue renting. Best decision of my life = live like a resident for five years and counting after finishing fellowship :)

Asset inflation is real, 10 percent plus a year (stocks, homes) while healthcare/education completely outpaces and laps our salary jumps

Cash is trash, QE infinity continues and everything continues to pump in this new paradigm
 

CocoMelon0531

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I'm a new attending and have not yet bought a house. I'd like to, but flexible as to when I do. I'm ok in my current situation.

What I like about buying a house now:
- I can finally afford one I like
- interest rate at historic low

What makes me hesitate:
- Price of houses keep elevating, many houses being built and getting bought due to low interest rates driving up house prices further
- Uncertainty of economy, pandemic, new administration, etc


My worry is that I'll buy a house that's currently worth 350k, and if the housing market crashes like it did 2008, it may only be worth 180k. It would obviously be more optimal to buy during a crash... This is hard to predict of course..

What do you think?

Most advices on here and in WCI are very traditional and outdated. I originally worked in finance for a few years so I have a unique perspective that is viewed by others as very radical.

But with worldwide fiat money printing on overdrive and not slowing down, you want to tap that physician mortgage at basement prices and lock in the price for a valuable commodity (housing that you will be using for the next decade) and let the real 4-6% asset inflation work for you against the banks. Rent will go up drastically in the future once demand, consumption, and money velocity are back to baseline with vaccine and worldwide monetary stimulus.

FYI, everyone who bought homes 6-8 months ago has already saw their home prices up by 6-7%, aka free rents if they sell their homes now after commissions and fees.
 
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goldsummer

7+ Year Member
Jan 20, 2013
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How long have you been in the current job? Do you have partnership or tenure (depending on private practice or academic)? Lot of people including physicians end up changing first job. There will be some price correction in near future but no one knows when and how much. I don't see interest rates changing that much in 2021.

Its been about 3 months. I have a 2 year guarantee base salary through october 2022. I'm employed by a hospital chain. So far, I like it. I plan to stay long term, but yeah who knows.
I do wonder how the new billing scheme will affect things...
 

goldsummer

7+ Year Member
Jan 20, 2013
68
41
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  1. Attending Physician
Most advices on here and in WCI are very traditional and outdated. I originally worked in finance for a few years so I have a unique perspective that is viewed by others as very radical.

But with worldwide fiat money printing on overdrive and not slowing down, you want to tap that physician mortgage at basement prices and lock in the price for a valuable commodity (housing that you will be using for the next decade) and let the real 4-6% asset inflation work for you against the banks. Rent will go up drastically in the future once demand, consumption, and money velocity are back to baseline with vaccine and worldwide monetary stimulus.

FYI, everyone who bought homes 6-8 months ago has already saw their home prices up by 6-7%, aka free rents if they sell their homes now after commissions and fees.
and you think right now is the time? or will the housing bubble burst similarly to what it did in 2008?
 

CocoMelon0531

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and you think right now is the time? or will the housing bubble burst similarly to what it did in 2008?

2008 is a once in a lifetime buying opportunity. Will not get such deal with the usd money press backing everything up. I personally expect IS housing to be up 8-10% for this year.
 
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abolt18

Cool cool cool cool cool cool cool cool cool cool
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I'm a new attending and have not yet bought a house. I'd like to, but flexible as to when I do. I'm ok in my current situation.

What I like about buying a house now:
- I can finally afford one I like
- interest rate at historic low

What makes me hesitate:
- Price of houses keep elevating, many houses being built and getting bought due to low interest rates driving up house prices further
- Uncertainty of economy, pandemic, new administration, etc


My worry is that I'll buy a house that's currently worth 350k, and if the housing market crashes like it did 2008, it may only be worth 180k. It would obviously be more optimal to buy during a crash... This is hard to predict of course..

What do you think?
While it is obviously more optimal to buy during a crash, you may find yourself waiting around a LONG time.

Are you buying the home to make money on it? Or to live in it? Because if it's to live in it, and you plan on living there a long time, you're not actually out anything if the market crashes after you buy, unless of course you try to sell after the price drops...

I think if you feel confident that you like your job and you're planning to stick around, buying a house makes perfect sense when you find the house you want. I wouldn't wait around for prices to crash.

Good luck!
 
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goldsummer

7+ Year Member
Jan 20, 2013
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While it is obviously more optimal to buy during a crash, you may find yourself waiting around a LONG time.

Are you buying the home to make money on it? Or to live in it? Because if it's to live in it, and you plan on living there a long time, you're not actually out anything if the market crashes after you buy, unless of course you try to sell after the price drops...

I think if you feel confident that you like your job and you're planning to stick around, buying a house makes perfect sense when you find the house you want. I wouldn't wait around for prices to crash.

Good luck!

You're right.

I do feel like i like my job currently. I think ill be with this group for a long while. and in this town. But with covid and all this billing changes to come, wasnt sure what to expect.

Good advice, thanks
 

NITRAS

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Mar 26, 2018
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Which is exactly the reason to buy now! When a home IS affordable.
(Wasn't that the point of the OP?)

I know this is old to reply.

Low interest rates have inflated house prices. A rise in interest rates would probably cause some drop in home prices. Lots of people buy based on “how much a month?”.
 

BorntobeDO?

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I don’t think interest rates are going up again any time soon
 
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