Discussion in 'General Discussion' started by drippy, Mar 15, 2006.
Boston is 15! Hell Leominster MA is in the top 25 I think. That's crazy. I gotta get my ass to Texas
You're 100% correct. You should NEVER ignore retirement when financial planning.
That being said, that's not what we're doing. We're trying to get him into a house.
1. Exotic financing arrangements get people into a house and enable them to build equity. Are they risky? Sure. Does it get you into a house MUCH earlier than you would normally be able to with a 20% downpayment? You bet. Risk vs reward right? Costs vs benefits right? So you get an exotic type of deal and refinance into something normal in two years when your financial situation is somewhat back to normal (or at least stabilized) right? Why is that so tough?
2. For the majority of people, when you buy your first home, you put EVERYTHING into the purchase. You're essentially penniless. It's the way things work. Obviously there won't be much for additional improvements or significant repairs...but you shouldn't expect there to be. The exception would be if you bought a "fixer upper" at a low price with the expectation that the savings on the sales price allow you to put something into the improvements/repairs.
3. Actually, it depends on who we're talking about. I know people who are geared to that, love that, can afford it, and do it regularly. But they are the minority (of the people I personally know). In this particular situation, I could see suggesting that he buy a condo as a starter home, build up some equity over the next few years and then sell it so he can buy himself a single family residence. Doing this accomplishes: a) owning property, b) building equity in an investment, c) providing a means to upgrade to a single family residence d) doesn't put the kind of financial stress a single family residence would and e) defers capital gains tax on the gain when he sells the condo. Then again, I don't know his entire situation...
4. Nope, CPA in one of the craziest housing markets in the country.
5. Obviously it's difficult. But I've done it. Sacrifice and compromise are necessary to be successful at it. We can't have everything we want all at the same time. You have to have priorities. And quite frankly in this housing market, you do have to ignore pretty much everything else if you want a house. It's unfortunate, but it's reality.
Something else to think about, what kind of return on his investment is he getting in his retirement plan? In the last ten years, the home I'm in has appreciated in value well over 200%. On average what is that, 20% a year? You think he's getting anything close to that rate in his retirement account?
Lastly, how much is he currently paying in rent? At least half of what a mortgage payment would be. More likely at least 2/3. Remember, paying rent is just throwing money away...
Just the Bay Area is 3 of the top 7...Part of why I'm planning on leaving...hope to catch an A's game with you and Drippy 1st though
We should totally do that.
I wonder if I'm in line for season tickets this year? I decided not to renew my own season tickets thinking my dad was going to hook me up...I don't even know if he renewed his.
I'll bring a keg or two of homebrew!
Wow. It seems that hideously over-priced city living is no longer what London does best.
Good job we still have pidgeon poo.
Tokyo is the only place that beats London on a consistent basis in cost of living surveys, the top American city dosen't even scratch the top 10 and is lucky to break the top 15 in most years.
$166,000 is only about 90 grand in queens heads, you couldent live in a shed in central London for that.
Just as I read your post, I thought 'Wait... Dollars? D'OH!'
Well, in that case...
'You bleedin' Yanks, don't know when you're born etc etc'
I am glad I do not live in any of those cities. I am way to cheep to live in them.
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