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Discussion in 'Road Side Pub' started by T's03GT, Jan 10, 2019.
Your primary residence is not an investment.
you must watch a lot of dave ramsey
In that case everyone should buy a ****ing trailer
I don't think so. Here's what Dave says on his site:
Simply buying a house means you’re investing in real estate on some level. But there’s a difference between owning your own home and investing in other real estate property. When you own your home, you won’t actively make money or increase your monthly cash flow off of the property.
The fact is, paying off your home is one of the best long-term investments you can make. It’s so important that I recommend you do that before investing in any other type of real estate. Owning your home outright is a huge part of achieving financial peace. As long as you can continue to pay the taxes and insurance on your property, you don’t have to worry about ever losing your home. Eliminating that risk not only gives you peace of mind regardless of the ups and downs of the real estate market, but it also frees up your budget to start saving for other types of investments.
Owning your home outright allows you to have many more financial options—now and down the road.
Absolutely. And wait for the tornado.
well there you go. first thing davey boy has said that I agree with and have done LOL. that whole affording the taxes and insurance however is huge.
Like a lot of things in life, it depends. It depends on where you live for one thing. Where I live in CA it's a fantastic investment- provided you either time the market right or hold it for ten years or so. Additionally, if you have a rental unit on the property like I do, there's room for cash flow improvement over time.
I've made about 200% on my $86k down payment over the past 2.5 years, in terms of equity/home value. It's nice to hit a home run on the biggest investment of my life.
I don't but I realize that if I sell my primary residence I still need a residence in the same inflated market. Hey, great, my $300k house is now worth a million....well so is your neighbor and unless you're willing to either rent until the next crash or significantly downgrade your primary living situation you're not really seeing cash flow. That's not to say it can't be but the fact that you still need a place to live kills most people's argument that it's a financial investment for them. It's an investment in your future for sure but it's not a financial investment that's generating cash flow unless you either play the market or have a secondary generating cash flow which, let's face it, 99.9% of the people saying it's a financial investment aren't doing. But hey, let's repeat the same arguments from 2007.
I bought at the same time but in Concord I think you and I timed the market pretty well, I definitely wouldn't be able to buy my own home again though.
jesus if you use your down payment as the gauge I have made 1000% from mine LOL
What else would you use as a gauge? Good work on the equity. How many years did it take?
well first I count my ROI based on the price of the house when I bought it vs the value of the house today. I bought it for 160k today it is valued at 280+. now sure what the + is because I have solar panels and places that value the house like zillow don't factor that is even if you add it to their info. I bought it in 2001.
if you go buy down payment. I put $300.00 cash into this house when I bought it new in 2001. so technically if you use todays price it is roughly 1000% in 16 years.
best thing is it is now paid off just in time for me to get ready to retire so I won't have a house payment
My wife and I bouncing back and forth on a stick build or a mod...some interesting stuff in here
OK, fair enough. I've never heard of anyone buying a house with less than 3% down let alone three hundred down. That's great to not have a house payment in retirement. My strategy is to invest as much as I an in other ways and only pay my minimum payment each month on the house ($4400/mo).
I think your math is wrong though. If you take 300 bucks and say 1000% increase that is what 3300? I think you're more like 40,000% return on your down payment lol.
LOL never claimed to get gooder at math .... (was 350.00 on reflection)
Story on the house - I decided to look because I kept seeing 0% down 0% closing signs all over. I had no money for down or closing and was well aware that they usually added the closing and down to the end of the mortgage but wanted to test the waters anyway. Told the GF at the time to start looking adn gave her a list of must haves, like to have, and oh hell no. She found a place in a couple days and when I went to look at it the sales office the lady showed me a list of houses that were already built that the builder was paying 10 points on.
I asked her what I could use that 10% for and she said anything I wanted. closing costs? yet .. down payment? yep .. I was like uhhhh wait a sec, FHA rules say that the builder can't pay the down payment. she said they had a way around it and expained the Neimiah corp to me. basically the builder donates 3.5% (3.5 points) to the Corp and then in turn Grant me the buyer 3% for may down payment. FHA rules allows a grant so it's all good
I walked into this house and it was like "Honey! I'm home" fell in love with it. gave her a check for 1k. we went to their show room, and i picked out 2 ceiling fans and a microwave to be installed. we went to closing 15 days later and they gave ME a check for 650 bucks. I walked out with a 156k mortgage on a 160k purchase. I called my dad and told him I bought a house but needed to borrow 2500 bucks so I could get a refrigerator and something to put on the windows LOL. He was more than amenable.
the living, dining room and kitchen in this place is as big as the apartment I moved out of
yah I really fell into the deal. and glad I did.
My brother did a modular and I did stick built, it's hard to tell which one is the mod unless you know what to look for. I used to build houses years ago, I think his is very well built.
I would also recommend taking a tour of the factory that will be building it, you get to see the whole process.
You only have a return on investment if you have $120k in your pocket right now or if you have that after moving to a comparable house. The only investment you're getting a return on is a place to retire
My father had a pre lab ( modular) put up late in 1978.
Just this week he said if something happened to it that he'd go pre fab again. Never one issue!