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March 15, 2015 at 8:51 AM in reply to: The cost of an Ivy League undergrad degree next year…. #783733March 14, 2015 at 6:34 PM in reply to: The cost of an Ivy League undergrad degree next year…. #783706
CoronitaParticipant[quote=AN]joec, Paul Jacob went to UCB, Paul Allan went to Washington State University, Jerry Yang went to Standford, Larry Page went to UMich and Standford, Sergey Brin went to University of Maryland, College Park (public) and Standford, Tim Cook went to Auburn University (public) and Duke University for MBA, Steve Jobs went to Reed College and dropped out, Marissa Mayer went to Standford, etc. I can go on and on, but there are plenty who did not go to Ivy and made it big. I would rather my kid be Steve Jobs and drop out of Reed College than Zuch’s wife.[/quote]
Practically speaking, Stanford is equivalent to the Ivy’s if not better. Just like MIT. Between it and Berkeley, I’d say it’s a toss up.
CoronitaParticipantI’ll give you tough love advice. You will burn right through your equity if you aren’t careful and disciplined. That’s what happens if you suddenly get a windfall and aren’t use to dealing with a large amount.
So I would say definitely pretend it doesn’t exist. And use your mortgage as your way to save. You are solving both your savings concern and your shelter problem at the same time. Your equity will be your savings. San marcos is on the way up. Schools are pretty good.
I would keep your house. And make minimum enhancements to it. Like no maintenance unless its absolutely necessary. Bare bone shelter. That’s it. Best luck to you
CoronitaParticipant[quote=JohnAlt91941][quote=scaredyclassic]
no. Prices go down, but wiser people know they have no ability to know when where why how or even if it’ll happen in their lifetime.
to say prices go down is as useful as saying b the sun will burn out.
yeah…and…so…[/quote]
Perceptive people recognize bubbles, unlike sheep (who inflate bubbles).[/quote]
People are good at believing what they believe, whether that really is what is happening or not. If they are correct, it tends to be a coincidence or just they were lucky.
Afterall, aren’t there a lot of people perceptive people who jumped on the housing is going to crash bandwagon in 2004-2006 still on the sideline waiting for home prices to crash even further and hence still renting even after home prices have already corrected 30-50+% in some areas here…still holding out for the next real estate crash?
CoronitaParticipant.
CoronitaParticipant[quote=spdrun]1. A primary residence isn’t sacred. It’s an investment like anything else. Nothing wrong with selling it and downgrading.
[/quote]No it’s not, it doesn’t generate income And you’re not even going to find something comparable ever so slightly less unless you sacrifice the area you live or if sacrifice significant square footage.
[quote]
2. You save $30,000 right there if you don’t use a broker. Go with a discount agent, let the title agency handle the sale. Done. I don’t see why closing costs should exceed $10,000 without a broker involved.
[/quote]Oh please stop with this “if you don’t use a broker nonsense”. While you might be a genius when it comes to real estate, the average person does not or cannot deal with not using a broker.
[quote]
3. Who says there’s only $170k of equity? I’m assuming the OP has paid some principle and also had a down payment on the residence. He should get that back as well.
[/quote]Because the first few years of a 30 year mortgage goes mostly towards interest. Total principal pay down will be roughly $15k on a $300k borrowed at @ 3.5%. It will be less, if he/she borrowed more or borrowed at a higher rate.
[quote]
4. If he buys a 2/1 outright or nearly outright, he can live for $1000 per month. Maybe $500 per month if he’s lucky. Then he’ll have a whole lot of money to pay off debts and a condo that can be paid off in 10 years, if not immediately.
[/quote]Good luck with that one….Unless you want to live an a crack area.
For reference a 1/1 in mira mesa, people are starting to ask $200k for it, and some have sold pretty close to that.[quote]
5. Paid off debts + small housing nut will mean that he’ll be able to save to buy another investment soon. Or just work less and travel a lot. Living below one’s means rocks.[/quote]Person is saving by paying of their home’s principal loan anyway.
CoronitaParticipant[quote=JohnAlt91941][quote=FlyerInHi][quote=JohnAlt91941]
Perceptive people recognize bubbles, unlike sheep (who inflate bubbles).[/quote]And where are they are going to live for less than their current mortgage payments? Remember, they bought at the bottom.[/quote]
Hence, $170k in gain. Do you really think that will be eaten up by the difference in their mortgage vs renting?
They may find something to rent CHEAPER than their current monthly nut depending on what they are comfortable with.
Myself, I haven’t seen rents skyrocket the last few years.[/quote]
That $170 in gain really is closer to $120k in gain after selling costs.
Personally, I think it’s a bad idea to play russian roulette with your primary residence, especially that the OP bought at such a ridiculously low price with probably a ridiculously low fixed rate mortgage, and without knowsing how OP will manage that $120k . What would be worse if is that $120k is tapped and used to pay off debt and then spent on other things, leaving the OP back to square one with no savings and now no house.
By not tapping the equity and continuing to pay down the house, the person is essentially “saving”. Eventually, when the person owns the home free and clear, the person has minimized his living expenses, and if he/she want to retire in their sixties, sell and buy something smaller or move into a retirement home. I don’t think we’ll ever see mortgage interest rates as low as they were. And the OP also bought at a historically low price, it’s unlikely we’ll ever see both low rates and low price in the forseeable future. Very unlikely the OP’s primary home will see $330k prices again. So for practical purposes, it is his savings account.
March 13, 2015 at 5:10 PM in reply to: The cost of an Ivy League undergrad degree next year…. #783644CoronitaParticipantI already told my kid that she owes me a porsche whe she grows up. I guess now I can tell her, after she’s done with college, she’ll owe me one every other year for 6 years.
And she had the balls to say “what’s the big deal with a porsche if you have a miata”? The nerve of kids these days!
March 13, 2015 at 5:00 PM in reply to: The cost of an Ivy League undergrad degree next year…. #783639CoronitaParticipant[quote=scaredyclassic]My fancy ivy league pedigree paid for by my folks made my mom very angry that I was sending my kid to SDSU. Hell I wouldn’t even let him apply anywhere expensive. She felt like I was being a cheapskate and not paying forward what I got.
The kid was cool with that. Kids are OK with some direction.
Prestige. Held me back in some ways. I should’ve been in a state school.[/quote]
I’m not quite sure why I went in hindsight. I guess I just wanted to get out of CA and try something different. In hindsight, probably not the smartest move for engineering.
Anyway, my kid decided she wanted to be a fashion designer and at one point wanted to be a professional cheerleader. I think we settled on fiction novelist for the time being.
So why I’m talking or worried about Ivy League school is beyond me…..
I guess karma is circling back around and paying me a visit despite all the things I say about how great STEMs should be for kids…lol….
Ai-Yah!
March 13, 2015 at 4:54 PM in reply to: The cost of an Ivy League undergrad degree next year…. #783637CoronitaParticipant[quote=flyer][quote=flu][quote=AN]flu, UPenn is #1 Undergrad biz specialize in Finance. So, it’s obvious that it would carry some weight when you’re apply wall street. However, #3 is University of Michigan–Ann Arbor. Harvard is not even in the top 10. Do you think wall street would prefer Harvard over UMich?[/quote]
Actually, yes. Because there are a lot of people that go to Harvard on wall street. And wall street works like a fraternity. Hey, I don’t like it either, but that’s how the game works.[/quote]
Exactly to my point about how connections trump education in many, many cases.[/quote]
I won’t disagree with you there. there is definitely that angle to it too.
March 13, 2015 at 4:53 PM in reply to: The cost of an Ivy League undergrad degree next year…. #783635CoronitaParticipant[quote=spdrun]Hey! My former Miata takes issue at the last line![/quote]
I’m sure mine does too. That’s probably why it barfed this week…I hope I didn’t blow a head gasket…Piece of shit.
[img_assist|nid=20757|title=pos|desc=|link=node|align=left|width=500|height=400]
Oh well, time to make room..
[img_assist|nid=20758|title=pos2|desc=|link=node|align=left|width=500|height=400]
See, if I actually got into Harvard instead of a lesser Ivy League, I could show you pictures of my Porsche…instead of my piece of shit miata…
QED.
March 13, 2015 at 4:47 PM in reply to: The cost of an Ivy League undergrad degree next year…. #783630CoronitaParticipantI’m going to draw this back again to cars and hijack my own thread that I created.
Colleges are a lot like cars.
Porsche is a better car than a BMW, because a Porsche will always be a Porsche, not matter how much BMW tries to make an M better than a Porsche. 10-15% of the population can afford to drive a porsche. Out of that, maybe 25% of the population do so because they plan on utilizing that porsche for how it’s meant to be used. The remaining 75% of buyers buy a Porsche just because it’s a Porsche, including those that buy a Cayenne Turbo (the Porsche SUV, which is the most ridiculous thing)
The remaining 85-90% of the population that can’t afford the Porsche, probably 50% of them wouldn’t mind having one if money wasn’t an issue, but due to budget constraints, still drive a piece of shit miata. And no matter how much those people spend supercharging a miata, and even though it might come very close to a porsche… It’s still just a piece of shit miata.
March 13, 2015 at 4:42 PM in reply to: The cost of an Ivy League undergrad degree next year…. #783626CoronitaParticipant[quote=AN]flu, UPenn is #1 Undergrad biz specialize in Finance. So, it’s obvious that it would carry some weight when you’re apply wall street. However, #3 is University of Michigan–Ann Arbor. Harvard is not even in the top 10. Do you think wall street would prefer Harvard over UMich?[/quote]
Actually, yes. Because there are a lot of people that go to Harvard on wall street. And wall street works like a fraternity. Hey, I don’t like it either, but that’s how the game works.
March 13, 2015 at 4:39 PM in reply to: The cost of an Ivy League undergrad degree next year…. #783625CoronitaParticipant[quote=scaredyclassic]I couldn’t care less about prestige.
All I care about frankly is my kids making money.
That is all.
Prestige is actually worth zero… maybe less than zero to me.[/quote]
I agree.
March 13, 2015 at 3:58 PM in reply to: The cost of an Ivy League undergrad degree next year…. #783610CoronitaParticipant[quote=AN]Even if I think $400k is chump change, I would still like to instill in my kids the value of money and that it doesn’t matter how much you have, it’s all about how much you spend. Especially, what’s the ROI. Don’t spend for the sake of spending just because you can. That’s how all those millionaires go broke. I want them to also think about opportunity cost. If they’re entrepreneur in spirit, I would much rather put that $400k in their start up/small biz than an Ivy degree. I know a couple of people who graduated at prestigious UC with a CS and BioEngineering degree. Immediately after graduation, they moved to a small town, open up a cell phone shop. Now, they own 20-30 cell phone franchise stores. They’re making much more money than they probably would as engineers, unless they got lucky and work for companies like Instagram.[/quote]
I wouldn’t. Because if my kids wouldn’t spend it. Someone else would try to figure out a way to spend it. At least if my kid wastes it, it’s still my kid that wastes it. 🙂
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