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October 12, 2007 at 8:47 PM in reply to: Will honest people start doing dirty/crooked things to bail out of their houses #88623
patientlywaiting
Participantfat_lazy, I hate to break it to you but your street is not the sine qua non of life in San Diego.
People may not sell on your block but there will be plenty of deals out there that will make your purchase seem like an albatross.
It would be like paying today’s prices for a 10 year old Mercedes. Give it 15 more year and the purchase won’t look so bad.
October 12, 2007 at 8:47 PM in reply to: Will honest people start doing dirty/crooked things to bail out of their houses #88630Participantfat_lazy, I hate to break it to you but your street is not the sine qua non of life in San Diego.
People may not sell on your block but there will be plenty of deals out there that will make your purchase seem like an albatross.
It would be like paying today’s prices for a 10 year old Mercedes. Give it 15 more year and the purchase won’t look so bad.
October 12, 2007 at 4:25 PM in reply to: how big of a mortgage will i be able to afford if ……. #88577ParticipantIn Florida, there is value in paying off a house since the house is sheltered from creditors. If you fall on hard times or get sued, your creditors cannot take you house. Liquid cash can be seized but not the house.
That’s why Wall Street executives(and OJ Simpson) all have houses in Florida paid in cash.
Who knows? You might run over a mother and child tomorrow. Or your son might go on a rampage using your gun (see related thread). In that case, you’ll most likely be sued for every penny you have.
October 12, 2007 at 4:25 PM in reply to: how big of a mortgage will i be able to afford if ……. #88583ParticipantIn Florida, there is value in paying off a house since the house is sheltered from creditors. If you fall on hard times or get sued, your creditors cannot take you house. Liquid cash can be seized but not the house.
That’s why Wall Street executives(and OJ Simpson) all have houses in Florida paid in cash.
Who knows? You might run over a mother and child tomorrow. Or your son might go on a rampage using your gun (see related thread). In that case, you’ll most likely be sued for every penny you have.
Participant” out of real estate waiting for the deals while continuing to accumulate in the market.”
I agree. Why hold a depreciating asset when you could be invested in earning assets.
Participant” out of real estate waiting for the deals while continuing to accumulate in the market.”
I agree. Why hold a depreciating asset when you could be invested in earning assets.
October 12, 2007 at 12:50 PM in reply to: how big of a mortgage will i be able to afford if ……. #88503Participantcbad could compromise and payoff his starter house then rent it out as an investment. He can then move up and leverage away to build wealth. As time goes by and his earnings increase, that would not be too much money tied up in his house.
For the financially disciplined, cash flow and leverage are fine. For most people cash will burn holes in their pockets and disappear anyway.
People do many stupid things with their money such as borrowing for cars, vacations, weddings, electronics, etc.. In a broader context, paying off a house is pretty wise to me.
Yes, leverage is good but you need to know how to use it. My cousin buys everything on credit and pays off the bill before the interest accrue. She even plans the delivery of her appliances to the day so the bill goes on next month’s statement. She and her husband make lists, sit down at the dinner table and discuss everything before bed. Thanks to leverage, they built a good fortune from middle class salaries and good investments.
HLS I read an economist (can’t remember his name) whose research shows that worldwide debt is growing much faster than our productive ability to service that debt. Somewhere down the line, the economic machine will seize-up. That’s what is happening to US housing right now.
October 12, 2007 at 12:50 PM in reply to: how big of a mortgage will i be able to afford if ……. #88510Participantcbad could compromise and payoff his starter house then rent it out as an investment. He can then move up and leverage away to build wealth. As time goes by and his earnings increase, that would not be too much money tied up in his house.
For the financially disciplined, cash flow and leverage are fine. For most people cash will burn holes in their pockets and disappear anyway.
People do many stupid things with their money such as borrowing for cars, vacations, weddings, electronics, etc.. In a broader context, paying off a house is pretty wise to me.
Yes, leverage is good but you need to know how to use it. My cousin buys everything on credit and pays off the bill before the interest accrue. She even plans the delivery of her appliances to the day so the bill goes on next month’s statement. She and her husband make lists, sit down at the dinner table and discuss everything before bed. Thanks to leverage, they built a good fortune from middle class salaries and good investments.
HLS I read an economist (can’t remember his name) whose research shows that worldwide debt is growing much faster than our productive ability to service that debt. Somewhere down the line, the economic machine will seize-up. That’s what is happening to US housing right now.
October 12, 2007 at 11:45 AM in reply to: how big of a mortgage will i be able to afford if ……. #88481Participantcbad’s strategy is safe and sound. It’s like taking out insurance.
Everyone should have a house that is paid off. I’m not talking about a mansion but a modest liveable home. As your income grows and you move up, then sure, use leverage to build wealth but keep one property paid off. That can be a $200k condo somewhere decent.
You then don’t have worries about taking investment risks because you know that your house will always be there to provide you a decent standard of living should things go to shit.
One of my business partners in the 1990s lost his shirt and mc mansion in Laguna Niguel. He never recovered to this day. If you hit bottom, it’s very hard to recover. It happens all the time.
If/when there is an economic depression, a lot of of highly leveraged “rich” people will be out on the street. Maybe not in out lifetimes, but it will happen.
Don’t gamble with the house.
October 12, 2007 at 11:45 AM in reply to: how big of a mortgage will i be able to afford if ……. #88488Participantcbad’s strategy is safe and sound. It’s like taking out insurance.
Everyone should have a house that is paid off. I’m not talking about a mansion but a modest liveable home. As your income grows and you move up, then sure, use leverage to build wealth but keep one property paid off. That can be a $200k condo somewhere decent.
You then don’t have worries about taking investment risks because you know that your house will always be there to provide you a decent standard of living should things go to shit.
One of my business partners in the 1990s lost his shirt and mc mansion in Laguna Niguel. He never recovered to this day. If you hit bottom, it’s very hard to recover. It happens all the time.
If/when there is an economic depression, a lot of of highly leveraged “rich” people will be out on the street. Maybe not in out lifetimes, but it will happen.
Don’t gamble with the house.
October 12, 2007 at 9:24 AM in reply to: how big of a mortgage will i be able to afford if ……. #88404ParticipantI’d say you can afford a $250k mortgage. Depending on where interest rates go.
Maybe $300k since you’re at a later stage in life where you probably don’t have many expenses other than food and shelter.
You may be able to get a townhouse at Liberty Station at the very trough. You will definitely qualify to live in Carlsbad if you want to be ocean close.
October 12, 2007 at 9:24 AM in reply to: how big of a mortgage will i be able to afford if ……. #88410ParticipantI’d say you can afford a $250k mortgage. Depending on where interest rates go.
Maybe $300k since you’re at a later stage in life where you probably don’t have many expenses other than food and shelter.
You may be able to get a townhouse at Liberty Station at the very trough. You will definitely qualify to live in Carlsbad if you want to be ocean close.
ParticipantAs I said in a separate thread, I love the convenice of Palomar.
Lindberg is busy and could use relief. We could easily land the smaller aircrafts at Palomar instead of Lindberg and keep Lindberg as the principal airport. Why build a new airport when we can improve the use of our existing facilities.
Tough luck for the people who live near Palomar. Like bugs said, they should have known. The Bressi folks were too blinded by potential appreciation and the “opportunity” to by that they threw due diligence out the window. They should have contacted the city about the commercial development to the west of Bressi and the County about the airport.
ParticipantAs I said in a separate thread, I love the convenice of Palomar.
Lindberg is busy and could use relief. We could easily land the smaller aircrafts at Palomar instead of Lindberg and keep Lindberg as the principal airport. Why build a new airport when we can improve the use of our existing facilities.
Tough luck for the people who live near Palomar. Like bugs said, they should have known. The Bressi folks were too blinded by potential appreciation and the “opportunity” to by that they threw due diligence out the window. They should have contacted the city about the commercial development to the west of Bressi and the County about the airport.
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