[permabear]

Gold is a good hedge in either deflation or inflation:

http://dailyreckoning.com/gold-and-deflation-2/

The liquid, easy hedge is to buy the GLD ETF. Consider SLV (silver) as well. Both are going up-up-up so you may want to consider waiting for a pullback.

Some people will argue that physical gold is your only real hedge, as in the face of a stock market collapse, the ETF’s could decouple from the spot price of gold/silver and lose value. But, we’re talking massive collapse, like get your guns and canned foods. In all other cases, the ETF’s should track the spot price of gold/silver reasonably well.

http://seekingalpha.com/article/228517-gold-why-and-how-im-buying-right-now

[permabear]

Gold is a good hedge in either deflation or inflation:

http://dailyreckoning.com/gold-and-deflation-2/

The liquid, easy hedge is to buy the GLD ETF. Consider SLV (silver) as well. Both are going up-up-up so you may want to consider waiting for a pullback.

Some people will argue that physical gold is your only real hedge, as in the face of a stock market collapse, the ETF’s could decouple from the spot price of gold/silver and lose value. But, we’re talking massive collapse, like get your guns and canned foods. In all other cases, the ETF’s should track the spot price of gold/silver reasonably well.

http://seekingalpha.com/article/228517-gold-why-and-how-im-buying-right-now

[permabear]

Gold is a good hedge in either deflation or inflation:

http://dailyreckoning.com/gold-and-deflation-2/

The liquid, easy hedge is to buy the GLD ETF. Consider SLV (silver) as well. Both are going up-up-up so you may want to consider waiting for a pullback.

Some people will argue that physical gold is your only real hedge, as in the face of a stock market collapse, the ETF’s could decouple from the spot price of gold/silver and lose value. But, we’re talking massive collapse, like get your guns and canned foods. In all other cases, the ETF’s should track the spot price of gold/silver reasonably well.

http://seekingalpha.com/article/228517-gold-why-and-how-im-buying-right-now

[permabear]

[quote=sdduuuude]He sends me to a wholesale outlet to pick out the carpet, which he picks up and installs. Much cheaper this way.[/quote]

I did this in my last house and saved at least 50%. If you want hardwood, strongly consider “cabin grade”. What this means is factory second. Often times it means the finish is off a little or the stain is uneven. Georgia Carpet is one place that sells these direct:

http://www.georgiacarpet.com/clearance-sale.htm

I bought “cabin grade” Mannington Island Chestnut for $2.49/ft and it looked gorgeous. Everyone said so. You could never tell it wasn’t “first grade” in a million years. I found an installer who would lay the hardwood at $2.50/ft (call around). So total job was < $10k. By contrast, all-in-one flooring places were quoting me $10-12/ft for the exact same flooring installed. So it would've been $20-25k.

[permabear]

[quote=sdduuuude]He sends me to a wholesale outlet to pick out the carpet, which he picks up and installs. Much cheaper this way.[/quote]

I did this in my last house and saved at least 50%. If you want hardwood, strongly consider “cabin grade”. What this means is factory second. Often times it means the finish is off a little or the stain is uneven. Georgia Carpet is one place that sells these direct:

http://www.georgiacarpet.com/clearance-sale.htm

I bought “cabin grade” Mannington Island Chestnut for $2.49/ft and it looked gorgeous. Everyone said so. You could never tell it wasn’t “first grade” in a million years. I found an installer who would lay the hardwood at $2.50/ft (call around). So total job was < $10k. By contrast, all-in-one flooring places were quoting me $10-12/ft for the exact same flooring installed. So it would've been $20-25k.

[permabear]

[quote=sdduuuude]He sends me to a wholesale outlet to pick out the carpet, which he picks up and installs. Much cheaper this way.[/quote]

I did this in my last house and saved at least 50%. If you want hardwood, strongly consider “cabin grade”. What this means is factory second. Often times it means the finish is off a little or the stain is uneven. Georgia Carpet is one place that sells these direct:

http://www.georgiacarpet.com/clearance-sale.htm

I bought “cabin grade” Mannington Island Chestnut for $2.49/ft and it looked gorgeous. Everyone said so. You could never tell it wasn’t “first grade” in a million years. I found an installer who would lay the hardwood at $2.50/ft (call around). So total job was < $10k. By contrast, all-in-one flooring places were quoting me $10-12/ft for the exact same flooring installed. So it would've been $20-25k.

[permabear]

[quote=sdduuuude]He sends me to a wholesale outlet to pick out the carpet, which he picks up and installs. Much cheaper this way.[/quote]

I did this in my last house and saved at least 50%. If you want hardwood, strongly consider “cabin grade”. What this means is factory second. Often times it means the finish is off a little or the stain is uneven. Georgia Carpet is one place that sells these direct:

http://www.georgiacarpet.com/clearance-sale.htm

I bought “cabin grade” Mannington Island Chestnut for $2.49/ft and it looked gorgeous. Everyone said so. You could never tell it wasn’t “first grade” in a million years. I found an installer who would lay the hardwood at $2.50/ft (call around). So total job was < $10k. By contrast, all-in-one flooring places were quoting me $10-12/ft for the exact same flooring installed. So it would've been $20-25k.

[permabear]

[quote=sdduuuude]He sends me to a wholesale outlet to pick out the carpet, which he picks up and installs. Much cheaper this way.[/quote]

I did this in my last house and saved at least 50%. If you want hardwood, strongly consider “cabin grade”. What this means is factory second. Often times it means the finish is off a little or the stain is uneven. Georgia Carpet is one place that sells these direct:

http://www.georgiacarpet.com/clearance-sale.htm

I bought “cabin grade” Mannington Island Chestnut for $2.49/ft and it looked gorgeous. Everyone said so. You could never tell it wasn’t “first grade” in a million years. I found an installer who would lay the hardwood at $2.50/ft (call around). So total job was < $10k. By contrast, all-in-one flooring places were quoting me $10-12/ft for the exact same flooring installed. So it would've been $20-25k.

[permabear]

[quote=Scarlett]Don’t feel terrible if you can’t manage to save 2K a month at 140K. Most people won’t be able to. It’s very hard to budget like that with 2 young kids, especially if they are in daycare and go to activities and all that, especially if both of you work.[/quote]

Saving $2k/month should be doable. Not easy, I didn’t say easy. But $140k is $12k gross each month. Subtract $1k for retirement and $2k for taxes and you’re still at $9k net. Save $2k and you still have $7k net each month.

If buying a house is a serious goal, sacrifices must be made to save for the down payment in the short-term. Cheaper wine and beer, maybe sell a car and carpool for a year, maybe skip the 401k just for a year (no longer) while you save up cash. Maybe you and the wife don’t exchange gifts for a year (kids still get them).

If you found an affordable rental close to $2k, tightened the belt for a year, and made it a goal to save $24k by the end of the year, I bet you’d do it. The goal is everything.

[permabear]

[quote=Scarlett]Don’t feel terrible if you can’t manage to save 2K a month at 140K. Most people won’t be able to. It’s very hard to budget like that with 2 young kids, especially if they are in daycare and go to activities and all that, especially if both of you work.[/quote]

Saving $2k/month should be doable. Not easy, I didn’t say easy. But $140k is $12k gross each month. Subtract $1k for retirement and $2k for taxes and you’re still at $9k net. Save $2k and you still have $7k net each month.

If buying a house is a serious goal, sacrifices must be made to save for the down payment in the short-term. Cheaper wine and beer, maybe sell a car and carpool for a year, maybe skip the 401k just for a year (no longer) while you save up cash. Maybe you and the wife don’t exchange gifts for a year (kids still get them).

If you found an affordable rental close to $2k, tightened the belt for a year, and made it a goal to save $24k by the end of the year, I bet you’d do it. The goal is everything.

[permabear]

[quote=Scarlett]Don’t feel terrible if you can’t manage to save 2K a month at 140K. Most people won’t be able to. It’s very hard to budget like that with 2 young kids, especially if they are in daycare and go to activities and all that, especially if both of you work.[/quote]

Saving $2k/month should be doable. Not easy, I didn’t say easy. But $140k is $12k gross each month. Subtract $1k for retirement and $2k for taxes and you’re still at $9k net. Save $2k and you still have $7k net each month.

If buying a house is a serious goal, sacrifices must be made to save for the down payment in the short-term. Cheaper wine and beer, maybe sell a car and carpool for a year, maybe skip the 401k just for a year (no longer) while you save up cash. Maybe you and the wife don’t exchange gifts for a year (kids still get them).

If you found an affordable rental close to $2k, tightened the belt for a year, and made it a goal to save $24k by the end of the year, I bet you’d do it. The goal is everything.

[permabear]

[quote=Scarlett]Don’t feel terrible if you can’t manage to save 2K a month at 140K. Most people won’t be able to. It’s very hard to budget like that with 2 young kids, especially if they are in daycare and go to activities and all that, especially if both of you work.[/quote]

Saving $2k/month should be doable. Not easy, I didn’t say easy. But $140k is $12k gross each month. Subtract $1k for retirement and $2k for taxes and you’re still at $9k net. Save $2k and you still have $7k net each month.

If buying a house is a serious goal, sacrifices must be made to save for the down payment in the short-term. Cheaper wine and beer, maybe sell a car and carpool for a year, maybe skip the 401k just for a year (no longer) while you save up cash. Maybe you and the wife don’t exchange gifts for a year (kids still get them).

If you found an affordable rental close to $2k, tightened the belt for a year, and made it a goal to save $24k by the end of the year, I bet you’d do it. The goal is everything.

[permabear]

[quote=Scarlett]Don’t feel terrible if you can’t manage to save 2K a month at 140K. Most people won’t be able to. It’s very hard to budget like that with 2 young kids, especially if they are in daycare and go to activities and all that, especially if both of you work.[/quote]

Saving $2k/month should be doable. Not easy, I didn’t say easy. But $140k is $12k gross each month. Subtract $1k for retirement and $2k for taxes and you’re still at $9k net. Save $2k and you still have $7k net each month.

If buying a house is a serious goal, sacrifices must be made to save for the down payment in the short-term. Cheaper wine and beer, maybe sell a car and carpool for a year, maybe skip the 401k just for a year (no longer) while you save up cash. Maybe you and the wife don’t exchange gifts for a year (kids still get them).

If you found an affordable rental close to $2k, tightened the belt for a year, and made it a goal to save $24k by the end of the year, I bet you’d do it. The goal is everything.

[permabear]

[quote=dd123]Yeah, but with all these govt intervention, I don’t see the prices going down though I don’t see them going up either…[/quote]

If you make $140k and you feel priced out, who the hell else is buying a home as a first-time homebuyer? That’s the only question worth asking. All the other stuff is just confusion.

The govt can only push on a string long enough. The blog link I posted above shows prices are turning down again, in spite of all the stimulus.

Don’t worry. Ask yourself what sounds most likely:

1. Housing prices suddenly start shooting up 10% a year
2. Housing prices stay more or less flat
3. Housing prices begin to weaken again and trend down

If it’s either #2 or #3, this means inflation will be making housing cheaper for you. So keep diligently putting money in the bank – as much as possible – until you feel you can buy a home in a decent area. “Cheapest home in the best area” and all that.

In the meantime, there’s some nice stuff for rent in Scripps Ranch and 4S Ranch, both very nice communities with great schools, for under $3000 a month. If you’re renting at $3k, making $140k, you should be able to save $2k/month if you budget.

You may also enjoy this recent poll: http://piggington.com/where_will_real_estate_be_in_3_years

[permabear]

[quote=dd123]Yeah, but with all these govt intervention, I don’t see the prices going down though I don’t see them going up either…[/quote]

If you make $140k and you feel priced out, who the hell else is buying a home as a first-time homebuyer? That’s the only question worth asking. All the other stuff is just confusion.

The govt can only push on a string long enough. The blog link I posted above shows prices are turning down again, in spite of all the stimulus.

Don’t worry. Ask yourself what sounds most likely:

1. Housing prices suddenly start shooting up 10% a year
2. Housing prices stay more or less flat
3. Housing prices begin to weaken again and trend down

If it’s either #2 or #3, this means inflation will be making housing cheaper for you. So keep diligently putting money in the bank – as much as possible – until you feel you can buy a home in a decent area. “Cheapest home in the best area” and all that.

In the meantime, there’s some nice stuff for rent in Scripps Ranch and 4S Ranch, both very nice communities with great schools, for under $3000 a month. If you’re renting at $3k, making $140k, you should be able to save $2k/month if you budget.

You may also enjoy this recent poll: http://piggington.com/where_will_real_estate_be_in_3_years

[Author]

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