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Posts by idfnl

London was once like that.https://www.theguardian.com/artanddesign/2012/nov/09/billionaires-basements-london-houses-architecture
Lighten up on the acronyms.
This is true, my parents have one home that has been passed on from an embassy's staff to the one that takes over for like a decade, more than once they have come in and offered to change floors, paint colors and pay for it.There is definitely a rental market for homes in better shape with quality appliances, etc that attract longer term renters. Unfortunately American renters tend to fuck up properties like nobody's business. My parents now collect 2 months rent as a...
I don't know what your best course of action is, I'm simply presenting an alternative way to consider housing that doesn't follow this standard model that many seem to think is the "right way".Almost nobody puts money in an investing account the way you suggest, of the ones that do, many squander it by ill advised purchases, and you are acting like its a guaranteed return... it's not. It's a valid scenario, as mine is.You're life's work is being given to a bank, you're...
In Europe this is pretty common. Many don't acquire any kind of property until late into their 30's. Ask GreenFrog about it, he's the resident expert on Spain.As I mentioned above, the savings would go into some vehicle able to earn a return. And $800 a month isn't much to save. For a $200k house the savings rate would need to be about 2k a month, in which case it's a 4-5 year cycle. That outright purchase would save you $150k in interest for the lifetime of the...
Nowhere did I mention a commute to dc - I would bet a viable DC satellite economy forms there so commutes become minimal, or hell a high speed rail.There were tons of properties in DC in the 80s you couldn't give away, and now look.
Not sure where you're drawing an inference about safety, I was challenging the notion that there aren't substantial dips out there to buy. When you look at regional markets there are bubbles and depressed markets all the time. If you're thoughtful, you can find an entry point somewhere.If I were a buyer? West Virginia. Once it's head emerges from its ass, should eventually become the home for the priced out DC crowd much like Santa Cruz has welcomed those fed up with...
I don't see why you wouldn't adjust for inflation since it exists. The other thing left untouched so far is the impact property taxes have on all this math we've been discussing.Also, there are regional peaks and dips happening all the time. Take a look at the wide variances state to state, this is also happening locality to locality.
I know a guy that recently emigrated here from sw Europe. He said it used to be that mortgages didn't really exist, you waited until you had the cash saved. Mortgages became easy in his country, and everyone who has one is in the shit as mortgages caused a bubble.If you're trying to be logical, the approach would be to seek the lowest cost of living possible while saving money at the highest possible return.Many would end up in you're parents basement while saving money...
A CD at 1.5% will never net you as much as you'd get prepaying on a 4% mortgage.1m at 4% = $3333 in interest. You pay that down by $1000 and you've saved $4 in interest. A CD would net you $1.50, whose compounding is less than the carryforward in interest savings over time.It comes down to government intervention making the bad math above palatable with tax deductions. In any event, there is an inflection point where the paydown overrides the tax savings.If your...
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