Quote:
Originally Posted by Donatello.
You are not in the same boat if you own TWO homes.
Also, should no one buy a home again? Different times.
With that said, I know the current rates & market are stupid artificially inflated. Clearly not sustainable. The bubble will burst. When? We don't know.
These people paying over asking for average homes and not doing inspections etc = idiots
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Not sure what you mean by saying I'm not in the same boat. I'm not comparing myself to others buying now. I have to say I've been lucky with my timing. I bought my primary home before the big housing bubble when prices shot through the roof in 2001. I bought my vacation home in 2012 before housing prices started to shoot up again and when the interest rate environment was favorable prior to the massive money dump that has happened recently.
There's no way I'd be buying a second home or a third now if I haven't already bought my second home. Prior to rates shooting up, I asked about refinancing my second home's mortgage when I refinanced my primary home. The broker I went through said no way they'd be able to touch the 3.25% rate. She said mortgage rules had changed where second homes get hit with a higher rate over primary homes. So right now I'm "stuck" in both homes. There's no incentive for me to sell my primary to get into a significantly higher interest rate even though I have a ton of equity in my primary. There's no incentive for me to sell my second home to get into another one either as the rates would be even higher. The higher mortgage rates are also causing problems with housing supply because people such as me won't put our homes on the market.
I guess I could just dump my second home to capture the gains and cash out. But currently, I don't have any incentive to do so as my mortgage rate is low and I'd be taking it up the rear without lube more so than I am now with taxes with the gains I have with that property.