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temeculaguy
Participant[quote=Effective Demand]Buy a house for the right reasons. its right for you and your family and you can afford it. Dont buy expecting to get rich off the house or expecting the house will protect ,you from the ills of the world.[/quote]
If you combine what ED said above and the collective discussion about potential inflation, you’ll be O.K.
If you buy a house that you cannot afford because you think inflation will alter the situation, you are nothing more than a 2006 bubble buyer with a toxic loan. They were buying a house they couldn’t afford because they thought it’s value would rise indefinately. But if you can afford what you are planning on buying, if it works with or without inflation, you will probably end up in great position 15 years from now when your house payment is the size of your car payment.
Prepare for inflation but don’t count on it! It is the system’s “easy button” but it has consequences that they would prefer to avoid. I think the odds are in favor of it but I wouldn’t make it my entire financial plan, just a component of it.
If we do enter a period of high inflation, lets say 6% a year for 5+ years, wages tend to follow but they also tend to lag. Most people’s wages do not adjust on a monthly basis, it balances out over a decade or so but it usually is a game of catch up.
In the early 1970’s you could buy a house with a 30 yr mortgage and by the mid 1980’s your mortgage was similar to a car payment. But it took 15 years and I’m cherry picking a period of time from the past, who knows what the future will bring.
If hyperinflation actually shows up, then those who own will make out like bandits, but it’s never happened in this country, so i wouldn’t bank on it.
Participant[quote=Effective Demand]Buy a house for the right reasons. its right for you and your family and you can afford it. Dont buy expecting to get rich off the house or expecting the house will protect ,you from the ills of the world.[/quote]
If you combine what ED said above and the collective discussion about potential inflation, you’ll be O.K.
If you buy a house that you cannot afford because you think inflation will alter the situation, you are nothing more than a 2006 bubble buyer with a toxic loan. They were buying a house they couldn’t afford because they thought it’s value would rise indefinately. But if you can afford what you are planning on buying, if it works with or without inflation, you will probably end up in great position 15 years from now when your house payment is the size of your car payment.
Prepare for inflation but don’t count on it! It is the system’s “easy button” but it has consequences that they would prefer to avoid. I think the odds are in favor of it but I wouldn’t make it my entire financial plan, just a component of it.
If we do enter a period of high inflation, lets say 6% a year for 5+ years, wages tend to follow but they also tend to lag. Most people’s wages do not adjust on a monthly basis, it balances out over a decade or so but it usually is a game of catch up.
In the early 1970’s you could buy a house with a 30 yr mortgage and by the mid 1980’s your mortgage was similar to a car payment. But it took 15 years and I’m cherry picking a period of time from the past, who knows what the future will bring.
If hyperinflation actually shows up, then those who own will make out like bandits, but it’s never happened in this country, so i wouldn’t bank on it.
Participant[quote=Effective Demand]Buy a house for the right reasons. its right for you and your family and you can afford it. Dont buy expecting to get rich off the house or expecting the house will protect ,you from the ills of the world.[/quote]
If you combine what ED said above and the collective discussion about potential inflation, you’ll be O.K.
If you buy a house that you cannot afford because you think inflation will alter the situation, you are nothing more than a 2006 bubble buyer with a toxic loan. They were buying a house they couldn’t afford because they thought it’s value would rise indefinately. But if you can afford what you are planning on buying, if it works with or without inflation, you will probably end up in great position 15 years from now when your house payment is the size of your car payment.
Prepare for inflation but don’t count on it! It is the system’s “easy button” but it has consequences that they would prefer to avoid. I think the odds are in favor of it but I wouldn’t make it my entire financial plan, just a component of it.
If we do enter a period of high inflation, lets say 6% a year for 5+ years, wages tend to follow but they also tend to lag. Most people’s wages do not adjust on a monthly basis, it balances out over a decade or so but it usually is a game of catch up.
In the early 1970’s you could buy a house with a 30 yr mortgage and by the mid 1980’s your mortgage was similar to a car payment. But it took 15 years and I’m cherry picking a period of time from the past, who knows what the future will bring.
If hyperinflation actually shows up, then those who own will make out like bandits, but it’s never happened in this country, so i wouldn’t bank on it.
ParticipantYou need high speed, sometimes it doesn’t work but it usually does.
I use it for laker games when I’m stuck in San Diego. In Temec, we are on L.A. t.v. so I get all 82 games on either kcal, fsw or tbs. In S.D. their FSW sucks, they will run reruns of high school football, or like right now they have the cal womens volleyball game. I’m in S.D. right now, I only have access to someone else’s basic cable of about 70 channels and I cannot watch the sdsu basketball game. Much to my suprise atdhe isn’t running the sdsu game (even though they are a top ten team right now) yet they have pretty much everything else. So I’m stuck with gamecast.
another nice thing about atdhe, it’s free and for pro games, they usually have two versions so you can hear the play by play from either team’s local play callers.
ParticipantYou need high speed, sometimes it doesn’t work but it usually does.
I use it for laker games when I’m stuck in San Diego. In Temec, we are on L.A. t.v. so I get all 82 games on either kcal, fsw or tbs. In S.D. their FSW sucks, they will run reruns of high school football, or like right now they have the cal womens volleyball game. I’m in S.D. right now, I only have access to someone else’s basic cable of about 70 channels and I cannot watch the sdsu basketball game. Much to my suprise atdhe isn’t running the sdsu game (even though they are a top ten team right now) yet they have pretty much everything else. So I’m stuck with gamecast.
another nice thing about atdhe, it’s free and for pro games, they usually have two versions so you can hear the play by play from either team’s local play callers.
ParticipantYou need high speed, sometimes it doesn’t work but it usually does.
I use it for laker games when I’m stuck in San Diego. In Temec, we are on L.A. t.v. so I get all 82 games on either kcal, fsw or tbs. In S.D. their FSW sucks, they will run reruns of high school football, or like right now they have the cal womens volleyball game. I’m in S.D. right now, I only have access to someone else’s basic cable of about 70 channels and I cannot watch the sdsu basketball game. Much to my suprise atdhe isn’t running the sdsu game (even though they are a top ten team right now) yet they have pretty much everything else. So I’m stuck with gamecast.
another nice thing about atdhe, it’s free and for pro games, they usually have two versions so you can hear the play by play from either team’s local play callers.
ParticipantYou need high speed, sometimes it doesn’t work but it usually does.
I use it for laker games when I’m stuck in San Diego. In Temec, we are on L.A. t.v. so I get all 82 games on either kcal, fsw or tbs. In S.D. their FSW sucks, they will run reruns of high school football, or like right now they have the cal womens volleyball game. I’m in S.D. right now, I only have access to someone else’s basic cable of about 70 channels and I cannot watch the sdsu basketball game. Much to my suprise atdhe isn’t running the sdsu game (even though they are a top ten team right now) yet they have pretty much everything else. So I’m stuck with gamecast.
another nice thing about atdhe, it’s free and for pro games, they usually have two versions so you can hear the play by play from either team’s local play callers.
ParticipantYou need high speed, sometimes it doesn’t work but it usually does.
I use it for laker games when I’m stuck in San Diego. In Temec, we are on L.A. t.v. so I get all 82 games on either kcal, fsw or tbs. In S.D. their FSW sucks, they will run reruns of high school football, or like right now they have the cal womens volleyball game. I’m in S.D. right now, I only have access to someone else’s basic cable of about 70 channels and I cannot watch the sdsu basketball game. Much to my suprise atdhe isn’t running the sdsu game (even though they are a top ten team right now) yet they have pretty much everything else. So I’m stuck with gamecast.
another nice thing about atdhe, it’s free and for pro games, they usually have two versions so you can hear the play by play from either team’s local play callers.
ParticipantJust do all the math and see what works out best, it can vary based on your individual tax situation and if you buy the house that tax situation will change as well. Get last years tax software, get your taxes then run the two scenarios, check the fees and see which scenario wins.
Also factor in that PMI is deductable now.
Normally I would tell people to leave their retirement money alone but I like your numbers, a couple of 30 year olds sitting on 300k, nice work. Obviously you are savers, you’ll get it back. Most people need to be kept from their retirement savings because they will blow it, most 30 year olds are just getting into the groove of saving if at all. The 20’s are a hard age financially, it’s often spent partly still in school, then in entry level positions and it is those years you need to buy stuff because you don’t really have anything. Plus when you go from zero income to something decent, it vanishes in that lottery winning feeling, at least it did for me. I’m just guessing here, but if 50K is 10%, then you are buying a house for about 500k, for a 30 y.o. to buy a house and they have already saved 60% of the total cost essentially, that is such a stable lifestyle. I’m proud of you.
ParticipantJust do all the math and see what works out best, it can vary based on your individual tax situation and if you buy the house that tax situation will change as well. Get last years tax software, get your taxes then run the two scenarios, check the fees and see which scenario wins.
Also factor in that PMI is deductable now.
Normally I would tell people to leave their retirement money alone but I like your numbers, a couple of 30 year olds sitting on 300k, nice work. Obviously you are savers, you’ll get it back. Most people need to be kept from their retirement savings because they will blow it, most 30 year olds are just getting into the groove of saving if at all. The 20’s are a hard age financially, it’s often spent partly still in school, then in entry level positions and it is those years you need to buy stuff because you don’t really have anything. Plus when you go from zero income to something decent, it vanishes in that lottery winning feeling, at least it did for me. I’m just guessing here, but if 50K is 10%, then you are buying a house for about 500k, for a 30 y.o. to buy a house and they have already saved 60% of the total cost essentially, that is such a stable lifestyle. I’m proud of you.
ParticipantJust do all the math and see what works out best, it can vary based on your individual tax situation and if you buy the house that tax situation will change as well. Get last years tax software, get your taxes then run the two scenarios, check the fees and see which scenario wins.
Also factor in that PMI is deductable now.
Normally I would tell people to leave their retirement money alone but I like your numbers, a couple of 30 year olds sitting on 300k, nice work. Obviously you are savers, you’ll get it back. Most people need to be kept from their retirement savings because they will blow it, most 30 year olds are just getting into the groove of saving if at all. The 20’s are a hard age financially, it’s often spent partly still in school, then in entry level positions and it is those years you need to buy stuff because you don’t really have anything. Plus when you go from zero income to something decent, it vanishes in that lottery winning feeling, at least it did for me. I’m just guessing here, but if 50K is 10%, then you are buying a house for about 500k, for a 30 y.o. to buy a house and they have already saved 60% of the total cost essentially, that is such a stable lifestyle. I’m proud of you.
ParticipantJust do all the math and see what works out best, it can vary based on your individual tax situation and if you buy the house that tax situation will change as well. Get last years tax software, get your taxes then run the two scenarios, check the fees and see which scenario wins.
Also factor in that PMI is deductable now.
Normally I would tell people to leave their retirement money alone but I like your numbers, a couple of 30 year olds sitting on 300k, nice work. Obviously you are savers, you’ll get it back. Most people need to be kept from their retirement savings because they will blow it, most 30 year olds are just getting into the groove of saving if at all. The 20’s are a hard age financially, it’s often spent partly still in school, then in entry level positions and it is those years you need to buy stuff because you don’t really have anything. Plus when you go from zero income to something decent, it vanishes in that lottery winning feeling, at least it did for me. I’m just guessing here, but if 50K is 10%, then you are buying a house for about 500k, for a 30 y.o. to buy a house and they have already saved 60% of the total cost essentially, that is such a stable lifestyle. I’m proud of you.
ParticipantJust do all the math and see what works out best, it can vary based on your individual tax situation and if you buy the house that tax situation will change as well. Get last years tax software, get your taxes then run the two scenarios, check the fees and see which scenario wins.
Also factor in that PMI is deductable now.
Normally I would tell people to leave their retirement money alone but I like your numbers, a couple of 30 year olds sitting on 300k, nice work. Obviously you are savers, you’ll get it back. Most people need to be kept from their retirement savings because they will blow it, most 30 year olds are just getting into the groove of saving if at all. The 20’s are a hard age financially, it’s often spent partly still in school, then in entry level positions and it is those years you need to buy stuff because you don’t really have anything. Plus when you go from zero income to something decent, it vanishes in that lottery winning feeling, at least it did for me. I’m just guessing here, but if 50K is 10%, then you are buying a house for about 500k, for a 30 y.o. to buy a house and they have already saved 60% of the total cost essentially, that is such a stable lifestyle. I’m proud of you.
ParticipantActually I understand Scardey’s feeling. I know which house he bought, I’m familiar with the street and it is definately the kind of place you can fall in love with. Personally I’m allergic to yard work, so I chose a tract home, it suits my needs but there’s definately nothing romantic about my relationship with my house. I like it, I like working on it, but in the end it’s a box to sleep in. Scardey’s place on the other hand is akin to a bed and breakfast, a lush and green estate tucked away in a botanical garden setting. I know it’s not that old, but it looks like it was built in another century. He wasn’t being his normal goofball self when he started that thread about hosting weddings, it’s that pretty and that serene. The location is ultra prime for our region, but that’s all I can say about in order preserve his privacy. Living there must feel like your on vacation. I think I’m spending my next vacation there, he’s gonna come home from work and have to shoo me away from my poolside cigar chair. He’s humble, but he stole that place and of all the people that I know of who have scored deals this downturn, he takes the gold medal, sometimes obsessions pay off.
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