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spdrun
ParticipantJumping Jeebus Xhrist on a unicycle, just say it; maybe people from Temecula would actually be able to help rather than being offended.
ParticipantA system as you’re describing is pretty common in rural American. I know people who own a farm in rural VT — they have to make a weekly dump run (or burn anything that’s paper/compost organics).
Participant19.5% rise in value, or median price? Secondly, a lot of entities can predict a lot of things. A lot of the time, the predictions are totally wrong.
Participant19% median rise doesn’t mean a 19% rise in home values. Doubt it, if anything I see things (THANKFULLY!!!!!!!!) slowing down in the areas where I’m looking.
ParticipantMy primary is an asset, as is anything I own. Your point?
Secondly, if you know anything about NY itself, it’s actually often cheaper to rent than to buy(*), whereas the opposite is true, dramatically so, in many parts of NJ right now. Even good parts. I’d rather have an income-producing duplex or triplex and live in the mother-in-law flat than have equity and debt tied up in a primary.
As far as a primary, with so many opportunities out there, at this point I’d rather go for either (a) a rental or (b) the cheapest primary possible in an an area that’s reasonably convenient and where I’m not likely to be shot. I don’t see housing as a place to live in, as much as a source of income that helps me work less and makes my tenants (rather than some asshole of a boss who wants to control my fucking life) pay my bills. I value independence much more than flash or even comfort — if I acquired enough rentals in the next few years not to ever HAVE to work outside of the rental business again if I lived frugally, I’d be happy as a pig in shit. I’d still work, but be comforted by the fact that I could tell any boss or client to go fuck off without repercussions.
(*) – and once you’re in a stabilized (not rent-controlled) apt for a while, they can’t raise rent much or evict you easily if at all.
ParticipantHahaha, it’s not worth even close to that. Frankly, if I sold it, I’d buy a building in the ‘burbs instead and just rent in the city. Prices in the city didn’t go down much from the bubble, whereas prices in NJ are down 25-30% or even more right now and HomePath listings are rockin’.
Feels like SD Co felt like in 2010-2011.
ParticipantWhy do I need a new primary — what’s wrong with treating a property as a hybrid of primary and investment?
(I’m actually a lot more comfortable with it being rented if I’m away for a month than sitting vacant, and I’m not really bothered by the idea of an unofficial “time share.”)
ParticipantThat’s frankly absurd — you could as well say “if you need to spend the cash, you really don’t have it.” An asset is an asset, and BTW, I look at my primary as an investment — I can go off to another corner of the world and keep it rented at a profit. (Finding decent tenant for anything in a halfway decent area of NYC is child’s play.)
ParticipantIt’s not any more destructive than consuming the cash equivalent to the primary. If they count cash in the absence of a primary, they should also count the primary 🙂
ParticipantNSR: borrowing against it to just spend the money would be stupid. Borrowing against it to invest in income property or a small business, less so. You could also tap the equity, buy something smaller/cheaper, move, rent the house, and then put it on the market. You’d have continuity without being forced into renting. Equity begets options.
ParticipantNSR: the house isn’t an asset unless they have significant equity in it. If it’s paid off or nearly so, it’s not hard to tap say 50% of the equity in said house. A primary can still be an asset.
ParticipantWhat I don’t get is that you can still rent a small place near the beach for under a grand a month if you’re lucky. Drive a cheap, paid-off used car or even a motorbike. Food is cheaper than on the East Coast or in the inland West. No tolls on most freeways. Free beach access, no use fees in summer.
Really the 1000-lb gorilla in the room is health insurance, which is covered if you have a job that provides it, and will become a lot cheaper for freelancers under Obamacare.
Living in SD can be surprisingly cheap if you’re single or a couple w/o kids, especially given that the natural beauty of the area that isn’t replicated in a lot of parts of the US.
ParticipantThe benefit is predictability — taxes are what they are, and can’t increase more than the statutory amount per annum. They can’t come to me and say that they’re tripling my taxes next year.
ParticipantNeed I ask how they’re spending $30k/yr on (I assume) two cars? For that kind of dough I can pay cash for a new car every year and crash one into a tree on alternate years.
Either that or cars in Irvine come with a free happy ending massage every week.
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