- This topic has 390 replies, 32 voices, and was last updated 16 years, 7 months ago by
ibjames.
-
AuthorPosts
-
January 31, 2008 at 10:17 AM #146395January 31, 2008 at 10:30 AM #146062
NotCranky
ParticipantRaybyrnes, I agree with you. I have had to play it a different way because I never made that kind of money other than sweat equity and bubble money. I have always gone for home purchases that I couldn’t really lose my ass or much of my freedom on. Look at the flexibility underspending relative to personal income/wealth will give you raising your family. Today my 4 year old and I will get our “victory garden” started .That isn’t every one’s dream life of course just an example.
One of my friends is going to retire to a good middle class life style when he is 50 because he pyramided his equity and some excess family income into about 20 rentals. His personal residence is nice but not excessively oppulent compared to his rentals and he didn’t buy it until he got the ball rolling with an owner occupied duplex and a few single family rentals.He and his wife are above average earners but not by much. BTW he was upside down on his first modest home, the duplex.He has flipped some stuff for profits. None of this would have likely happened w/o the first modest purchase.
I always tell people who are buying for a personal residence to buy less than they can afford based on full time employment or don’t buy. They never listen unless they had already made up their minds that way. Of course lots of people have the previous generation of family members backing them up so the admonition is less relevant.
Anyway, good luck. I hope you will keep us posted.
January 31, 2008 at 10:30 AM #146304ParticipantRaybyrnes, I agree with you. I have had to play it a different way because I never made that kind of money other than sweat equity and bubble money. I have always gone for home purchases that I couldn’t really lose my ass or much of my freedom on. Look at the flexibility underspending relative to personal income/wealth will give you raising your family. Today my 4 year old and I will get our “victory garden” started .That isn’t every one’s dream life of course just an example.
One of my friends is going to retire to a good middle class life style when he is 50 because he pyramided his equity and some excess family income into about 20 rentals. His personal residence is nice but not excessively oppulent compared to his rentals and he didn’t buy it until he got the ball rolling with an owner occupied duplex and a few single family rentals.He and his wife are above average earners but not by much. BTW he was upside down on his first modest home, the duplex.He has flipped some stuff for profits. None of this would have likely happened w/o the first modest purchase.
I always tell people who are buying for a personal residence to buy less than they can afford based on full time employment or don’t buy. They never listen unless they had already made up their minds that way. Of course lots of people have the previous generation of family members backing them up so the admonition is less relevant.
Anyway, good luck. I hope you will keep us posted.
January 31, 2008 at 10:30 AM #146333ParticipantRaybyrnes, I agree with you. I have had to play it a different way because I never made that kind of money other than sweat equity and bubble money. I have always gone for home purchases that I couldn’t really lose my ass or much of my freedom on. Look at the flexibility underspending relative to personal income/wealth will give you raising your family. Today my 4 year old and I will get our “victory garden” started .That isn’t every one’s dream life of course just an example.
One of my friends is going to retire to a good middle class life style when he is 50 because he pyramided his equity and some excess family income into about 20 rentals. His personal residence is nice but not excessively oppulent compared to his rentals and he didn’t buy it until he got the ball rolling with an owner occupied duplex and a few single family rentals.He and his wife are above average earners but not by much. BTW he was upside down on his first modest home, the duplex.He has flipped some stuff for profits. None of this would have likely happened w/o the first modest purchase.
I always tell people who are buying for a personal residence to buy less than they can afford based on full time employment or don’t buy. They never listen unless they had already made up their minds that way. Of course lots of people have the previous generation of family members backing them up so the admonition is less relevant.
Anyway, good luck. I hope you will keep us posted.
January 31, 2008 at 10:30 AM #146345ParticipantRaybyrnes, I agree with you. I have had to play it a different way because I never made that kind of money other than sweat equity and bubble money. I have always gone for home purchases that I couldn’t really lose my ass or much of my freedom on. Look at the flexibility underspending relative to personal income/wealth will give you raising your family. Today my 4 year old and I will get our “victory garden” started .That isn’t every one’s dream life of course just an example.
One of my friends is going to retire to a good middle class life style when he is 50 because he pyramided his equity and some excess family income into about 20 rentals. His personal residence is nice but not excessively oppulent compared to his rentals and he didn’t buy it until he got the ball rolling with an owner occupied duplex and a few single family rentals.He and his wife are above average earners but not by much. BTW he was upside down on his first modest home, the duplex.He has flipped some stuff for profits. None of this would have likely happened w/o the first modest purchase.
I always tell people who are buying for a personal residence to buy less than they can afford based on full time employment or don’t buy. They never listen unless they had already made up their minds that way. Of course lots of people have the previous generation of family members backing them up so the admonition is less relevant.
Anyway, good luck. I hope you will keep us posted.
January 31, 2008 at 10:30 AM #146405ParticipantRaybyrnes, I agree with you. I have had to play it a different way because I never made that kind of money other than sweat equity and bubble money. I have always gone for home purchases that I couldn’t really lose my ass or much of my freedom on. Look at the flexibility underspending relative to personal income/wealth will give you raising your family. Today my 4 year old and I will get our “victory garden” started .That isn’t every one’s dream life of course just an example.
One of my friends is going to retire to a good middle class life style when he is 50 because he pyramided his equity and some excess family income into about 20 rentals. His personal residence is nice but not excessively oppulent compared to his rentals and he didn’t buy it until he got the ball rolling with an owner occupied duplex and a few single family rentals.He and his wife are above average earners but not by much. BTW he was upside down on his first modest home, the duplex.He has flipped some stuff for profits. None of this would have likely happened w/o the first modest purchase.
I always tell people who are buying for a personal residence to buy less than they can afford based on full time employment or don’t buy. They never listen unless they had already made up their minds that way. Of course lots of people have the previous generation of family members backing them up so the admonition is less relevant.
Anyway, good luck. I hope you will keep us posted.
January 31, 2008 at 1:15 PM #146107Raybyrnes
ParticipantProbably like your friends I would prefer the 2 family place as a launching point but would settle on a townhome in a great school district once the kids are of middle school age.
We did an excercise as part of my MBA program that initially framed a scenario for a winemaker to make all of one type of wine or all of the other ans asked which way to go.
Funny but ther were a few in the class that argued that perhaps there was a third alternative. Rather than choosing betwen the scenarios why not proprtion the grapes to make both wines.
Learned a lot form this exercise from the simple standpoint that there can often times be different objectives. For some such as the JWM’s of this board in might be profit maximization. Try and time the market. Might be righ or might be wrong. For otehrs it might simply be to lower the amoutn of risk. Buy it when you can, create forced savings, pay it off as fast as you can, live debt free. But there can also be hybrids or the scenarios.
Most of the posts here throw up so many blanket statements without considering that objectives can be different. Therefore the desired outcome can be obtained in different ways.
January 31, 2008 at 1:15 PM #146351ParticipantProbably like your friends I would prefer the 2 family place as a launching point but would settle on a townhome in a great school district once the kids are of middle school age.
We did an excercise as part of my MBA program that initially framed a scenario for a winemaker to make all of one type of wine or all of the other ans asked which way to go.
Funny but ther were a few in the class that argued that perhaps there was a third alternative. Rather than choosing betwen the scenarios why not proprtion the grapes to make both wines.
Learned a lot form this exercise from the simple standpoint that there can often times be different objectives. For some such as the JWM’s of this board in might be profit maximization. Try and time the market. Might be righ or might be wrong. For otehrs it might simply be to lower the amoutn of risk. Buy it when you can, create forced savings, pay it off as fast as you can, live debt free. But there can also be hybrids or the scenarios.
Most of the posts here throw up so many blanket statements without considering that objectives can be different. Therefore the desired outcome can be obtained in different ways.
January 31, 2008 at 1:15 PM #146378ParticipantProbably like your friends I would prefer the 2 family place as a launching point but would settle on a townhome in a great school district once the kids are of middle school age.
We did an excercise as part of my MBA program that initially framed a scenario for a winemaker to make all of one type of wine or all of the other ans asked which way to go.
Funny but ther were a few in the class that argued that perhaps there was a third alternative. Rather than choosing betwen the scenarios why not proprtion the grapes to make both wines.
Learned a lot form this exercise from the simple standpoint that there can often times be different objectives. For some such as the JWM’s of this board in might be profit maximization. Try and time the market. Might be righ or might be wrong. For otehrs it might simply be to lower the amoutn of risk. Buy it when you can, create forced savings, pay it off as fast as you can, live debt free. But there can also be hybrids or the scenarios.
Most of the posts here throw up so many blanket statements without considering that objectives can be different. Therefore the desired outcome can be obtained in different ways.
January 31, 2008 at 1:15 PM #146389ParticipantProbably like your friends I would prefer the 2 family place as a launching point but would settle on a townhome in a great school district once the kids are of middle school age.
We did an excercise as part of my MBA program that initially framed a scenario for a winemaker to make all of one type of wine or all of the other ans asked which way to go.
Funny but ther were a few in the class that argued that perhaps there was a third alternative. Rather than choosing betwen the scenarios why not proprtion the grapes to make both wines.
Learned a lot form this exercise from the simple standpoint that there can often times be different objectives. For some such as the JWM’s of this board in might be profit maximization. Try and time the market. Might be righ or might be wrong. For otehrs it might simply be to lower the amoutn of risk. Buy it when you can, create forced savings, pay it off as fast as you can, live debt free. But there can also be hybrids or the scenarios.
Most of the posts here throw up so many blanket statements without considering that objectives can be different. Therefore the desired outcome can be obtained in different ways.
January 31, 2008 at 1:15 PM #146450ParticipantProbably like your friends I would prefer the 2 family place as a launching point but would settle on a townhome in a great school district once the kids are of middle school age.
We did an excercise as part of my MBA program that initially framed a scenario for a winemaker to make all of one type of wine or all of the other ans asked which way to go.
Funny but ther were a few in the class that argued that perhaps there was a third alternative. Rather than choosing betwen the scenarios why not proprtion the grapes to make both wines.
Learned a lot form this exercise from the simple standpoint that there can often times be different objectives. For some such as the JWM’s of this board in might be profit maximization. Try and time the market. Might be righ or might be wrong. For otehrs it might simply be to lower the amoutn of risk. Buy it when you can, create forced savings, pay it off as fast as you can, live debt free. But there can also be hybrids or the scenarios.
Most of the posts here throw up so many blanket statements without considering that objectives can be different. Therefore the desired outcome can be obtained in different ways.
January 31, 2008 at 1:32 PM #146117patientlywaiting
ParticipantRay, I think that the posts here are pretty rational. But the world is an emotional wreck. Financial counseling is like marriage counseling. If everyone were logical, the world would be simpler (and more enjoyable, imho).
Here’s a link to the BofA valuation tool. I think it’s more realistic than Zillow.
January 31, 2008 at 1:32 PM #146361ParticipantRay, I think that the posts here are pretty rational. But the world is an emotional wreck. Financial counseling is like marriage counseling. If everyone were logical, the world would be simpler (and more enjoyable, imho).
Here’s a link to the BofA valuation tool. I think it’s more realistic than Zillow.
January 31, 2008 at 1:32 PM #146388ParticipantRay, I think that the posts here are pretty rational. But the world is an emotional wreck. Financial counseling is like marriage counseling. If everyone were logical, the world would be simpler (and more enjoyable, imho).
Here’s a link to the BofA valuation tool. I think it’s more realistic than Zillow.
January 31, 2008 at 1:32 PM #146399ParticipantRay, I think that the posts here are pretty rational. But the world is an emotional wreck. Financial counseling is like marriage counseling. If everyone were logical, the world would be simpler (and more enjoyable, imho).
Here’s a link to the BofA valuation tool. I think it’s more realistic than Zillow.
-
AuthorPosts
- You must be logged in to reply to this topic.