[temeculaguy]

Look to the right ——————->

click on any of those sentences and it will reveal an internet conversation, the answers are there. Since there are no specifics in your question I cannot tell you which one will answer your question. Think of what type of investment and where, look for sentences relating to your specific investment and choose that one. As the late great David Lereah’s book title reads “all real estate is local.”

[temeculaguy]

Look to the right ——————->

click on any of those sentences and it will reveal an internet conversation, the answers are there. Since there are no specifics in your question I cannot tell you which one will answer your question. Think of what type of investment and where, look for sentences relating to your specific investment and choose that one. As the late great David Lereah’s book title reads “all real estate is local.”

[temeculaguy]

I think we are in some trouble either way. The current adminstration is fighting for amnesty and refusing to build a border fence, the other side seems to be no different, as a border comminuty that will affect us. The other issue is taxes, it is very easy to live here and feel middle class while compared to the rest of the country we are in the top tier and get the shaft in taxes, there is no cost of living clause in the tax code. 150k couple or 100k single in San Diego is not rich but the federal government sees it that way and takes away a number of tax credits at those levels because to them you are rich, a change at the top won’t change that.

[temeculaguy]

I think we are in some trouble either way. The current adminstration is fighting for amnesty and refusing to build a border fence, the other side seems to be no different, as a border comminuty that will affect us. The other issue is taxes, it is very easy to live here and feel middle class while compared to the rest of the country we are in the top tier and get the shaft in taxes, there is no cost of living clause in the tax code. 150k couple or 100k single in San Diego is not rich but the federal government sees it that way and takes away a number of tax credits at those levels because to them you are rich, a change at the top won’t change that.

[temeculaguy]

Rack that post, some of these responses were the funniest I’ve ever seen, I am still laughing at PD’s “twig” comment and Concho’s “what’s the point” among others. I was having a crappy day until now, thanks.

[temeculaguy]

Rack that post, some of these responses were the funniest I’ve ever seen, I am still laughing at PD’s “twig” comment and Concho’s “what’s the point” among others. I was having a crappy day until now, thanks.

[temeculaguy]

Buyorhold, my apologies if my posts sounded rude, it was meant in a spirit of humor. Ditto what SD said, you have to have thick skin on the blogs, but in trade you will get some wisdom and insight from some great minds that you might not encounter in your normal circles, and you might get some feedback from someone who screams at passing cars, the cost of free advice. If it was lending bubble you were referring to about mocking you (which I think it was) you have to admit you walked into it throwing down a deposit and then asking for advice. At least you were brave enough to not go with the “a friend of mine from work” angle, those crack me up.

[temeculaguy]

Buyorhold, my apologies if my posts sounded rude, it was meant in a spirit of humor. Ditto what SD said, you have to have thick skin on the blogs, but in trade you will get some wisdom and insight from some great minds that you might not encounter in your normal circles, and you might get some feedback from someone who screams at passing cars, the cost of free advice. If it was lending bubble you were referring to about mocking you (which I think it was) you have to admit you walked into it throwing down a deposit and then asking for advice. At least you were brave enough to not go with the “a friend of mine from work” angle, those crack me up.

[temeculaguy]

Cashflow, at least you realize you have the need to nest and have overcome it. I think it’s better that you are the one to find the houses and are more involved in the analysis, the knowledge counteracts the nesting. My hat is off to you for opting to stay home for a while on the bubble’s dime, your patience will be rewarded and the kids win in the meantime. Moving closer to family when kids are little is so great for everyone involved, since mine were little both sets of grandparents lived a bike ride away, attended every event and helped with babysitting and rides to school, I wish I had that as a kid. Maybe you could start a support group for all these guys wives who are pressuring them into buying now.

[temeculaguy]

Cashflow, at least you realize you have the need to nest and have overcome it. I think it’s better that you are the one to find the houses and are more involved in the analysis, the knowledge counteracts the nesting. My hat is off to you for opting to stay home for a while on the bubble’s dime, your patience will be rewarded and the kids win in the meantime. Moving closer to family when kids are little is so great for everyone involved, since mine were little both sets of grandparents lived a bike ride away, attended every event and helped with babysitting and rides to school, I wish I had that as a kid. Maybe you could start a support group for all these guys wives who are pressuring them into buying now.

[temeculaguy]

Cyphire, we were typing at the same time so I didn’t read yours until after I posted. Yes, short term plans would give I/O another appeal but from memory of another post she was going to be there long term, I could be wrong. But again, right now is not the best time, even with your financial means, to start a planned two year purchace. Seriously, tell me you don’t think buying today will allow someone to sell at a profit in two years. For most buying today they are likely to be required to stay put until the other side of the cycle (which may be more than 4 years), I/O is not the right move for June 2007, maybe June 2005 or June 2003 but not June 2007. The risk of buying today is that you may have to ride it out, it is better to be prepared for that.

Good point Perry, having it paid off at retirement should be the goal.

[temeculaguy]

Cyphire, we were typing at the same time so I didn’t read yours until after I posted. Yes, short term plans would give I/O another appeal but from memory of another post she was going to be there long term, I could be wrong. But again, right now is not the best time, even with your financial means, to start a planned two year purchace. Seriously, tell me you don’t think buying today will allow someone to sell at a profit in two years. For most buying today they are likely to be required to stay put until the other side of the cycle (which may be more than 4 years), I/O is not the right move for June 2007, maybe June 2005 or June 2003 but not June 2007. The risk of buying today is that you may have to ride it out, it is better to be prepared for that.

Good point Perry, having it paid off at retirement should be the goal.

[temeculaguy]

It isn’t so much about the deal as the personal financial situation. How close are you to retirement? What will that retirement be funded by? What is your income? What were you paying before and was that comfortable? What are your other investments? Some of this you may not be comfortable disclosing but it is the only way to get sound advice.

I can only guess, but I/O is probably wrong for you. It works when you have a rapidly increasing market and decreasing interest rates, it worked for many about 2-5 years ago, bit it’s time is over. And even when it was working it was a short term soloution for people fearing they would be priced out and had significant earnings increase potential (doctor/laywer/etc just starting out).

Why postpone paying for your house, with that kind of downpayment you could probably take a 15 yr fixed if you are aprox fifteen years from retirement. Why is a 30 year loan the benchmark today for “aggresive.” I know some genius is telling you to go I/O and then invest the difference but most people don’t, they spend it. If I/O is the only way to have a house and money to invest for retirement then you can’t really afford the house. Personally I think interest rates will rise slowly over the next few years, fix while you can and take the gamble out of your primary residence, gamble in other areas of you portfolio.

[temeculaguy]

It isn’t so much about the deal as the personal financial situation. How close are you to retirement? What will that retirement be funded by? What is your income? What were you paying before and was that comfortable? What are your other investments? Some of this you may not be comfortable disclosing but it is the only way to get sound advice.

I can only guess, but I/O is probably wrong for you. It works when you have a rapidly increasing market and decreasing interest rates, it worked for many about 2-5 years ago, bit it’s time is over. And even when it was working it was a short term soloution for people fearing they would be priced out and had significant earnings increase potential (doctor/laywer/etc just starting out).

Why postpone paying for your house, with that kind of downpayment you could probably take a 15 yr fixed if you are aprox fifteen years from retirement. Why is a 30 year loan the benchmark today for “aggresive.” I know some genius is telling you to go I/O and then invest the difference but most people don’t, they spend it. If I/O is the only way to have a house and money to invest for retirement then you can’t really afford the house. Personally I think interest rates will rise slowly over the next few years, fix while you can and take the gamble out of your primary residence, gamble in other areas of you portfolio.

[temeculaguy]

My apologies, I assumed you were the husband, there are so many husbands who pop up here becuase their pregnant wife or just had a baby, just needs that new house (I’m thinking of coming up with a syndrome name as soon as my research is done with regards to granite counters and estrogen). Your loan person is a liar, an idiot, or works for the builder and knows you can’t afford it. Interest only is so wrong for someone who plans to be there long term. When does the loan convert to principal, is there a prepayment penaly, what are the adjustment terms? Just about when you decide to have a second kid or take time off work, your mortgage will double, you will need to refinance out of your interest only and rates will likely be higher. Find out the fully amortized, 30 year fixed payment and if you can’t afford it, then you have your answer. Mortgage calculators are all over the internet.

Interest only is for certain situations and markets, barely being able to afford the I/O payment in a falling market with rising rates and long term plans is not one of those situations. Quick, read some of the posts about getting your deposit back.

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