god this makes me feel like ****

Very wise and the pay off will be huge down the road. It can be a struggle at first but it really is a wise idea.

Oh and for those who think renting is a great idea because wealthy people do it consider this - each time you make a rent payment that money is gone forever - you may as well burn it or flush it down the toilet. If you have a mortgage at least half that money is going into your house and even if you don't gain/loose when you sell your house you've "saved" that money....

If you can sit on real estate especially in larger cities (well here in Canada at least) you basically double your money on average every 10 years.

Yeah, thank god the trend of the McMansions is over with. But I agree, home to fit the lifestyle. We needed a separate room where I could do school work very far away from the television room, which is the only reason I even have a place this big. I don't have any kids or anything, just need enough room to get some peace and quiet.

Peace and quiet is a good thing ;) I need my down time as well!

John

For those who have mentioned rich people renting because they think its smarter, that is absolutely ridiculous. No one would not buy a house because they want to invest instead. If you live within your means you can pay the same amount per month for a mortgage then you would for rent. Also, any true investor would use leverage...take out a mortgage with a low rate and invest the money you have to produce a higher rate of return.

And now has never been a better time to buy, if you can afford the payment and/or have the cash. There are some sweet deals to be had in this down market, steals if you are a savvy shopper!

John

Exactly! While interest rates have crept up the past few weeks they are still at historic lows. That the $8k tax credit and many desperate sellers/short sales now is the time to buy.

*cough-B.S.-cough*:rolleyes:

Plain and simple a home is a liability until it is finally sold. Purchase assets, and limit your financial exposure to liabilities and you will achieve wealth. Take your time plan and your moves wisely. When you have saved enough money for a substantial down-payment on a home get a consultation with Goldman Sachs and then decide what's truly best for you. You may be surprised.

I also Plan on a Refi while the rates are low I have to call Wells Fargo some time this week or next



DAN

A home is a liability? And what school of economics did you graduate from? The loan on your home is a liability, balance sheet wise. The property itself is an asset. If you buy right, and in this economy there is no better time to get a deal on a home, you will over time almost always have an appreciating asset. Yes home values have dropped in this recession, but if you have owned for years, the long term appreciation is still there.

John

Georgetown University, and you? Home = maintenance, insurance, higher utility bills and other associated costs...... thus a liability until sold. Also does your home truly "appreciate" or is it's higher "value" in direct correlation with the depreciation of the United States dollar?;)

... you're right I should have invested in the stock market.... LOL!

If you didn't need to pay for housing then what you are saying has some merit but as most people who actually know about real estate can tell you that its the closest thing to a sure thing in investments..... stocks suck but I can tell you even in the worst market I've never seen rent go down and even now in this economy the vacancy rate here is only 1.2%. Besides if you are at the stage where you are renting out one of your properties you have someone paying your debt off for you and you are building equity in your investment at the same time. Take out a loan for an investment in the stock market and see how your return pays that loan off AND earns you money...

My dad lost about 40% of his life savings in mutal funds, etc - you know the safe bets. If he had kept his real estate he would own multi millions in real estate and easily live off the rentals alone.... but he listened to his investors (multiple investors - he would give them each $10K and switch to the one who made the best investments for him) and got rid of his real estate to fund his next project.... I won`t be making that mistake....

Well you just go right ahead and rent then.............. :rofl2:

Stop, he went to Georgetown University :rolleyes:

im hood rich(nice car with no home)...i live inside my Z :D