| savings options for higher income folks? |
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No-Brainer
Senior Member
Cash: $ 66.65
Posts: 907
Joined: 29 Dec 2005
Location: Oregon USA
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| Let me spell it out |
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I couldn't care less what the Real Estate market is doing around you, the fact is no matter where, when or how you live, there are people in desperate circumstances today, tomorrow and from now on and it will NEVER change. They often need to sell a house fast.
Look around any large city and tell me you don't see signs up saying "I buy houses" or something to that effect. What do you think those people are doing? Buying all those houses and sitting on them forever?
The simple fact is there are bargains in Real Estate everywhere and all you need to do is find one when you are ready to move each two years. If you come back and say they are not always available, I will laugh myself right out of my chair.
You might even have to fix it up a little, but you have two years to do that. Not having a wife to complain about living environment is a big advantage.
As far as Real Estate not being a liquid asset, that's simply not true. If you have real estate equity, you can get your hands on the money in 24 hours as long as your credit score is 720 or above. How much more liquid do you need it to be?
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Sat Feb 04, 2006 10:12 pm |
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coaster
Senior Advisor
Cash: $ 1358.20
Posts: 6687
Joined: 11 Oct 2005
Location: Wisconsin
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I'm not saying it can't be done....I'm saying it's not for the average person. That's who my posts were directed at. You're talking about special situations. The average person buys a house to be a home....some place to live. Many of those "bargains" are places few people would want to live in locations they wouldn't want to be. I've seen some of them. If you're a do-it-yourselfer and don't have to hire out getting the place fixed up, and if you're willing to live in it, and if you sell it yourself, then I'll grant you a profit in two years. Three big "ifs" that I don't think the average person is going to do. The expenses incurred in selling and moving can easily run to 10% for the average person. If there's only been appreciation of 5% per year, then two years is barely break-even.
And how much equity do most people have after two years, anyway?
~Tim~
Eye Candy : Why Whimsy
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Sat Feb 04, 2006 10:39 pm |
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No-Brainer
Senior Member
Cash: $ 66.65
Posts: 907
Joined: 29 Dec 2005
Location: Oregon USA
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| No battle here |
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I don't mean to start a fight with you.
Some folks just let their thinking and analyzing paralyze them from taking action that could result in great gains.
It's true, it's not for everyone or everyone would be doing it and the bargains would dry up.
I have taken Real Estate risks all my life and now that I am retired, I am so glad I did. I snowballed a $500 down payment into Half a Million, I'll take that any day of the week.
The average person you speak of arrives at retirement wondering what they can do next now that it's staring them in the eyes. I would venture to say that is not the kind of people we have on this Forum. The people here are looking for a better way before it's too late and what I posted is just one option, and a good one.
As to how much equity you can have after two years? I have had $30,000 in a lot less time than that. It depends on how much you paid, how much you put down, and what the current appraisal is.
You can go on being average if you feel more secure there, as for me and my house, we'll follow Real Estate.
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Sat Feb 04, 2006 10:59 pm |
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coaster
Senior Advisor
Cash: $ 1358.20
Posts: 6687
Joined: 11 Oct 2005
Location: Wisconsin
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It wasn't my intent, either, to argue merely for the sake of arguing, just to make a counterpoint for readers of the thread, so they're aware that taking a profit in real estate in two years isn't the norm. Not everyone has the ability, time, expertise, motivation or inclination to do as you have done. But that applies to making a profit through recognizing and taking advantage of special situations in every area. I trade futures. That's certainly not for everyone, and I wouldn't recommend it for everyone. But it's something I know and enjoy doing. Same with your way to wealth. And I think also we were talking about two different things: profit through adding value vs. profit through market appreciation. Everyone can do the second, but not everyone the first.
In any case, there are enough points here on both sides now for readers to make up their own minds. 
~Tim~
Eye Candy : Why Whimsy
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Sun Feb 05, 2006 12:01 am |
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sam1000
Full Member
Cash: $ 21.05
Posts: 95
Joined: 28 Jul 2005
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Buying a home for whatever purpose is out of the question right now. I just can't afford a $650,000 conventional mortgage on my income and I'm not doing the exotic loan stuff, interest only, neg am etc. that many people around here are doing.
Also, the Real Estate market is beginning to take a nosedive in LA. A friend of mine got into a condo for $400,000 6 months ago and it now appraised for $365,000, that's a 8.75% decline in value. There are comparble condos in his area priced at $350-370k and they are still not selling. THe press is not reporting these specifics because prices are not declining uniformly across LA but sooner or later they will catch up with the downtrend too.
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Fri Feb 10, 2006 7:54 am |
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