Quote:
Originally Posted by Realtor 1
I work with several first time home buyers. They have just recently entered the work force and will be making more money in no time. It is smart of them to get in right now even if it means a couple less bar nights or vacations.
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This is the opposite of smart.
These people are just entering the workforce, therefore have little idea how safe and secure their jobs are. If a downturn occurs they are likely some of the first to be let go since they are at the bottom of the totem pole.
Secondly, tell those that did the same thing in July of 2007, ask some of those people if it was smart now that their properties are worth 50,000 less than they paid for it.
Now to be fair I don't know their situation so their jobs may be secure, but it certainly is not smart to over leverage yourself.
Smart would be to to work for a couple years, save as much as humanly possible (this is where fewer bar nights comes in) and put down a nice big down payment of 10% or more.