Well, here we are into one of the most not-so-friendly housing slumps in literally decades. The tax credit helped to boost the first-time home buyer but didn't really help the move-up buyer (remember that there was also a $6500 tax credit). There are many questions but very few answers other than "I don't know". It's not just me, it's everyone in the business including the economists, the builders, the real estate agents, the appraisers and certainly the banks. With the "I don't know" answer, I give you one more possibility.
There are still many people who are making very good money and want to live in an executive home. To those people I present the Lease or Lease/Purchase option. Let's talk a little bit about the numbers. If you want to purchase an executive home, you are most likely looking at putting 20% (sometimes less but certainly sometimes more) as a down payment. If you came out of your home and didn't do so well (better than saying you took a bath) that 20% down is hard to come by.
Now let's say that you have some money saved, but that you don't want to utilize all of it or it's just not enough for the down payment. I give you the solution: either a lease or a lease/purchase. The reality of the situation for most people is that they work very hard for their money and want a nice place to live. And this isn't the best time to be buying a home. That's okay, the market will come back. So if you're interested in living in a nice home, go rent it. Don't lock yourself into a too long of a term lease (one year is advisable and two years is getting a little out there). If you decide to purchase the home, I'm sure the seller will allow you to do so and break the lease without penalty. At least a reasonable person would...
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