- This topic has 180 replies, 21 voices, and was last updated 16 years, 6 months ago by
(former)FormerSanDiegan.
-
AuthorPosts
-
August 15, 2008 at 1:05 PM #257764August 15, 2008 at 1:20 PM #257491
Anonymous
GuestThe person who has not accomplished home ownership often uses up or uses a good portion, of their assets or retirement benefits or to provide shelter(to taste) in their later years.
The problem is the average person moves too often to build that much equity in their house through principal repayments. They continually upgrade to better houses and never get out of the “paying mostly interest” and into the “paying mostly principal” phase of the loan. Then they have to sell their old home, because they can’t get a down payment our qualify for a second home loan without doing that. It is possible to buy houses, live in them until they’d cash flow on rent, rent them out and then buy again, rinse and repeat. However, this is beyond the abilities of nearly every homeowner since it requires saving a lot of money while owning a home.
August 15, 2008 at 1:20 PM #257673Anonymous
GuestThe person who has not accomplished home ownership often uses up or uses a good portion, of their assets or retirement benefits or to provide shelter(to taste) in their later years.
The problem is the average person moves too often to build that much equity in their house through principal repayments. They continually upgrade to better houses and never get out of the “paying mostly interest” and into the “paying mostly principal” phase of the loan. Then they have to sell their old home, because they can’t get a down payment our qualify for a second home loan without doing that. It is possible to buy houses, live in them until they’d cash flow on rent, rent them out and then buy again, rinse and repeat. However, this is beyond the abilities of nearly every homeowner since it requires saving a lot of money while owning a home.
August 15, 2008 at 1:20 PM #257688Anonymous
GuestThe person who has not accomplished home ownership often uses up or uses a good portion, of their assets or retirement benefits or to provide shelter(to taste) in their later years.
The problem is the average person moves too often to build that much equity in their house through principal repayments. They continually upgrade to better houses and never get out of the “paying mostly interest” and into the “paying mostly principal” phase of the loan. Then they have to sell their old home, because they can’t get a down payment our qualify for a second home loan without doing that. It is possible to buy houses, live in them until they’d cash flow on rent, rent them out and then buy again, rinse and repeat. However, this is beyond the abilities of nearly every homeowner since it requires saving a lot of money while owning a home.
August 15, 2008 at 1:20 PM #257733Anonymous
GuestThe person who has not accomplished home ownership often uses up or uses a good portion, of their assets or retirement benefits or to provide shelter(to taste) in their later years.
The problem is the average person moves too often to build that much equity in their house through principal repayments. They continually upgrade to better houses and never get out of the “paying mostly interest” and into the “paying mostly principal” phase of the loan. Then they have to sell their old home, because they can’t get a down payment our qualify for a second home loan without doing that. It is possible to buy houses, live in them until they’d cash flow on rent, rent them out and then buy again, rinse and repeat. However, this is beyond the abilities of nearly every homeowner since it requires saving a lot of money while owning a home.
August 15, 2008 at 1:20 PM #257779Anonymous
GuestThe person who has not accomplished home ownership often uses up or uses a good portion, of their assets or retirement benefits or to provide shelter(to taste) in their later years.
The problem is the average person moves too often to build that much equity in their house through principal repayments. They continually upgrade to better houses and never get out of the “paying mostly interest” and into the “paying mostly principal” phase of the loan. Then they have to sell their old home, because they can’t get a down payment our qualify for a second home loan without doing that. It is possible to buy houses, live in them until they’d cash flow on rent, rent them out and then buy again, rinse and repeat. However, this is beyond the abilities of nearly every homeowner since it requires saving a lot of money while owning a home.
August 15, 2008 at 1:35 PM #257505NotCranky
ParticipantIf a person can not buy a house that performs equally with rent, at the onset of the mortgage and gradually begins to out-perform rent ,and save, how can they rent and save?
A person who can rent and save can be a homeowner and save. If one can’t save in either situation they might as well be homeowner( If they want to and can stay put for a while).
Same disclaimer about reasonable entry time and rents and mortgages being in the same ballpark.
August 15, 2008 at 1:35 PM #257690NotCranky
ParticipantIf a person can not buy a house that performs equally with rent, at the onset of the mortgage and gradually begins to out-perform rent ,and save, how can they rent and save?
A person who can rent and save can be a homeowner and save. If one can’t save in either situation they might as well be homeowner( If they want to and can stay put for a while).
Same disclaimer about reasonable entry time and rents and mortgages being in the same ballpark.
August 15, 2008 at 1:35 PM #257704NotCranky
ParticipantIf a person can not buy a house that performs equally with rent, at the onset of the mortgage and gradually begins to out-perform rent ,and save, how can they rent and save?
A person who can rent and save can be a homeowner and save. If one can’t save in either situation they might as well be homeowner( If they want to and can stay put for a while).
Same disclaimer about reasonable entry time and rents and mortgages being in the same ballpark.
August 15, 2008 at 1:35 PM #257751NotCranky
ParticipantIf a person can not buy a house that performs equally with rent, at the onset of the mortgage and gradually begins to out-perform rent ,and save, how can they rent and save?
A person who can rent and save can be a homeowner and save. If one can’t save in either situation they might as well be homeowner( If they want to and can stay put for a while).
Same disclaimer about reasonable entry time and rents and mortgages being in the same ballpark.
August 15, 2008 at 1:35 PM #257795NotCranky
ParticipantIf a person can not buy a house that performs equally with rent, at the onset of the mortgage and gradually begins to out-perform rent ,and save, how can they rent and save?
A person who can rent and save can be a homeowner and save. If one can’t save in either situation they might as well be homeowner( If they want to and can stay put for a while).
Same disclaimer about reasonable entry time and rents and mortgages being in the same ballpark.
August 15, 2008 at 1:55 PM #257516peterb
ParticipantA home purchase is such a large amount of money that if the house is not appreciating, why buy it? Why take on the financial burden and risk of such an illiquid investment? Until rents and mortgages hit equilibrium, there’s very little financial logic to owning. Especially in a down trending market.
The two strongest financial reasons to own are appreciation and eventually living in a paid-0ff home. But you’ll always have taxes and maintenance to pay as long as you own. And you could have been investing the difference between your mortgage and rent in other assets that are performing better in the appreciation arena.August 15, 2008 at 1:55 PM #257701peterb
ParticipantA home purchase is such a large amount of money that if the house is not appreciating, why buy it? Why take on the financial burden and risk of such an illiquid investment? Until rents and mortgages hit equilibrium, there’s very little financial logic to owning. Especially in a down trending market.
The two strongest financial reasons to own are appreciation and eventually living in a paid-0ff home. But you’ll always have taxes and maintenance to pay as long as you own. And you could have been investing the difference between your mortgage and rent in other assets that are performing better in the appreciation arena.August 15, 2008 at 1:55 PM #257714peterb
ParticipantA home purchase is such a large amount of money that if the house is not appreciating, why buy it? Why take on the financial burden and risk of such an illiquid investment? Until rents and mortgages hit equilibrium, there’s very little financial logic to owning. Especially in a down trending market.
The two strongest financial reasons to own are appreciation and eventually living in a paid-0ff home. But you’ll always have taxes and maintenance to pay as long as you own. And you could have been investing the difference between your mortgage and rent in other assets that are performing better in the appreciation arena.August 15, 2008 at 1:55 PM #257761peterb
ParticipantA home purchase is such a large amount of money that if the house is not appreciating, why buy it? Why take on the financial burden and risk of such an illiquid investment? Until rents and mortgages hit equilibrium, there’s very little financial logic to owning. Especially in a down trending market.
The two strongest financial reasons to own are appreciation and eventually living in a paid-0ff home. But you’ll always have taxes and maintenance to pay as long as you own. And you could have been investing the difference between your mortgage and rent in other assets that are performing better in the appreciation arena. -
AuthorPosts
- You must be logged in to reply to this topic.