Forum Replies Created
-
AuthorPosts
-
October 16, 2007 at 2:48 PM in reply to: Feng Shui, is it important for you when buying a house? #89469
(former)FormerSanDiegan
ParticipantFirst, I wouldn’t rely on a realtor’s advice from 1998 to make insurance decisions.
Second, I tend to agree along the same lines as desmond. Depending on your other assets it may make sense to buy earthquake insurance under the following conditions:
1. You have substantial equity in your house.
2. The cost to replace the structure is significant with respect to the value of the property (land) and/or with respect to your non-RE net worth.ParticipantFirst, I wouldn’t rely on a realtor’s advice from 1998 to make insurance decisions.
Second, I tend to agree along the same lines as desmond. Depending on your other assets it may make sense to buy earthquake insurance under the following conditions:
1. You have substantial equity in your house.
2. The cost to replace the structure is significant with respect to the value of the property (land) and/or with respect to your non-RE net worth.ParticipantIn a dual income family even if each makes 60K. The household income easily touches 120K
Yes, of course. 2+2 =4.ParticipantIn a dual income family even if each makes 60K. The household income easily touches 120K
Yes, of course. 2+2 =4.October 12, 2007 at 11:43 AM in reply to: how big of a mortgage will i be able to afford if ……. #88475ParticipantLike I said, to each their own. This is coming from someone who will have their house paid off at the age of 34. I have plenty invested and I’ll invest plenty more with each of my monthly non mortgage payment.
Owning your home at an early age is one thing. Congratulations on that.
Cashing out a portion of ones retirement savings and paying way too many taxes rather than taking a loan is a completely different scenario altogether.October 12, 2007 at 11:43 AM in reply to: how big of a mortgage will i be able to afford if ……. #88482ParticipantLike I said, to each their own. This is coming from someone who will have their house paid off at the age of 34. I have plenty invested and I’ll invest plenty more with each of my monthly non mortgage payment.
Owning your home at an early age is one thing. Congratulations on that.
Cashing out a portion of ones retirement savings and paying way too many taxes rather than taking a loan is a completely different scenario altogether.October 12, 2007 at 11:18 AM in reply to: how big of a mortgage will i be able to afford if ……. #88461ParticipantInteresting point CBad. Suppose you have 1.5 Million in retirement assets when you are 64 years old. You are purchasing a 350K property. You have another 70K saved up for a downpayment. If the retirement account is tax deferred, you can either withdrawal about 500K from your retirement account all at once in order to cover the purchase and taxes on withdrawal … at some of the very highest tax rates. OR you can withdrawal about 20K per year to pay the mortgage at more modest tax rates. Why wouldn’t you take out a mortgage in that situation (assuming the lender will do so). Also, this way you let the bank take some risk. If you croak before paying off the loan and the house is underwater the bank loses and your heirs win. If the house is worth significantly more when you croak, your heirs win again.
Again, this only makes sense when the monthly costs of purchasing approach monthly costs of renting (not there yet in San Diego).October 12, 2007 at 11:18 AM in reply to: how big of a mortgage will i be able to afford if ……. #88468ParticipantInteresting point CBad. Suppose you have 1.5 Million in retirement assets when you are 64 years old. You are purchasing a 350K property. You have another 70K saved up for a downpayment. If the retirement account is tax deferred, you can either withdrawal about 500K from your retirement account all at once in order to cover the purchase and taxes on withdrawal … at some of the very highest tax rates. OR you can withdrawal about 20K per year to pay the mortgage at more modest tax rates. Why wouldn’t you take out a mortgage in that situation (assuming the lender will do so). Also, this way you let the bank take some risk. If you croak before paying off the loan and the house is underwater the bank loses and your heirs win. If the house is worth significantly more when you croak, your heirs win again.
Again, this only makes sense when the monthly costs of purchasing approach monthly costs of renting (not there yet in San Diego).October 12, 2007 at 11:00 AM in reply to: how big of a mortgage will i be able to afford if ……. #88451ParticipantAdam and Eve …. There was that slimy apple salesman who convinced Adam into buying the apple on layaway. Talk about the deal of all time. We’re still paying for it.
October 12, 2007 at 11:00 AM in reply to: how big of a mortgage will i be able to afford if ……. #88458ParticipantAdam and Eve …. There was that slimy apple salesman who convinced Adam into buying the apple on layaway. Talk about the deal of all time. We’re still paying for it.
October 12, 2007 at 10:26 AM in reply to: how big of a mortgage will i be able to afford if ……. #88431ParticipantAs always, good info from HLS.
I always wonder….
What if there were NO lenders and people had to pay cash for houses. I bet that prices would be a whole lot lower….Good thought experiment …
With no mortgage loans, my guess is that they would all be owned by rich folks, REITS, investment pools, and institutions and that most people would be lifetime renters. The price would be set by the relative return on rent compared to other investments.October 12, 2007 at 10:26 AM in reply to: how big of a mortgage will i be able to afford if ……. #88438ParticipantAs always, good info from HLS.
I always wonder….
What if there were NO lenders and people had to pay cash for houses. I bet that prices would be a whole lot lower….Good thought experiment …
With no mortgage loans, my guess is that they would all be owned by rich folks, REITS, investment pools, and institutions and that most people would be lifetime renters. The price would be set by the relative return on rent compared to other investments.October 12, 2007 at 10:17 AM in reply to: Will honest people start doing dirty/crooked things to bail out of their houses #88423ParticipantWill honest people start doing dirty/crooked things to bail out of their houses
Simple logical answer: NO.
Reason: Once the people do a dirty/crooked thing, they are no longer honest.(You can thank my Logic 101 Professor for the answer above)
October 12, 2007 at 10:17 AM in reply to: Will honest people start doing dirty/crooked things to bail out of their houses #88430ParticipantWill honest people start doing dirty/crooked things to bail out of their houses
Simple logical answer: NO.
Reason: Once the people do a dirty/crooked thing, they are no longer honest.(You can thank my Logic 101 Professor for the answer above)
-
AuthorPosts
