This afternoon’s Dave Ramsey show included a little rant on the economy and ended with his predictions on 2009.
“The Economy is slow and 2008 pretty much sucked,” said Ramsey on his Columbus’ affiliate WDTA 103.9 “What does that have to do with 2009?”
I couldn’t type fast enough to pick-up the rest, but his basic rant was that if you are WAITING for someone to save you then 2009 will be similar to 2008. But if you are focusing on improving yourself and moving forward, then 2009 could be a great year.
With interest rates hovering around the low-5% range and with prices down – it is a great time to buy a house IF YOU HAVE THE MONEY.
“We don’t need anymore people without money buying houses, we’ve had enough of that already,” said Ramsey.
He also says it is a great time to buy a used car, for much the same reason as the house time. It will allow you to get the most for your money.
Do I agree with him? Of course, it is my job to say that. If you subscribe to Ramsey’s principles — and have been working on his seven-step process — then IT IS a great time to buy a house or investment property.
Why?
Because you are going to have a down payment, you are buying a house on a 15-year fixed rate loan for about 5% of interest rates. And to top it off, that house is worth less than it was one year ago, what alone three years ago.
What if you don’t follow Dave Ramsey’s plan?
It is still a good time, however you need to get your ducks in a row. The better the credit the better the rate you’ll receive. On top of that you are going to need at least 3.5% down payment to make the deal happen.
Ramsey is on WTDA from 1-4 p.m., moving personal-favorite Dennis Miller to the 10 a.m. to 1 p.m. slot, replacing Glenn Beck.
No doubt this is an excellent time to purchase a home. When I bought my first home the going rate was 16.5%. Great rates while the market price is down…what a deal!
Hmmmm….
It’s been two months and still no real signs of “recovery” If the housing market is declining, it’s always best to wait. If you can.