What would you rather have, a healthy savings, or a nice place to live?

Discussion in 'The Okie Corral' started by nsl, Oct 5, 2015.

  1. nsl

    nsl

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    I'm being faced with a somewhat hard decision.
    I can stay in an old house that needs tons of work, trashy neighbors, etc for next to nothing and pretty much not have to worry about about much, or I can spend my savings and buy a decent home and feel better.
    What would be the smart thing to do?
     
  2. yellolab

    yellolab

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    Depends on your age. On the younger side(under 40), stay where you are and keep saving.
    Over 50, buy the house if it will be where you will retire.
     
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  3. ChuteTheMall

    ChuteTheMall Wallbuilder and Weapon Bearer

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    Why throw your money into a pit?

    Someday you should have both a nice home and savings.
     
  4. captainstormy

    captainstormy

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    You could probably find a better place that wouldn't break the bank.

    Sent from my Nexus 5 using Tapatalk
     
  5. WeeWilly

    WeeWilly

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    Real estate is all about location. In cities, it even comes down to the street you might be on, as well as the general area. Homes in undesirable areas will appreciate slowest, get hit hardest when things turn down and be slowest to recover when things turn up.

    Historically American's home was their savings account. The place where they accrued wealth slowly, such that when retirement came, they monetized that asset they were less capable of maintaining to move to a more simple place and provide liquid assets for their remaining years.

    Things have changed in recent times with the above, I suspect the new way will not end well.
     
  6. M2 Carbine

    M2 Carbine

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    It depends on what you mean by "trashy neighbors".
    If they are just basically honest low income people that can't afford to keep their place up like they should, I'd still want out of there but would stay until I found a nice place I could afford.

    If the "trashy neighbors" are dopers, criminals, or other kinds of assorted thugs I'd already be gone.

    Life it too short to waste it putting up with too much BS.
     
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  7. G30SF/F-250

    G30SF/F-250 Pinky Out Platinum Member

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    I would live in this and be happy but my wife won't.......



    [​IMG]
     
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  8. janice6

    janice6

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    Whichever better protects your investment. It makes no sense to throw away money while you are trying to save.

    If inadequate or high risk is all you can afford, the answer is clear.

    You must do what you have to do.
     
  9. Flying-Dutchman

    Flying-Dutchman

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    If you live in a safe place stay put; don’t join the rat race.
     
  10. M2 Carbine

    M2 Carbine

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    WOW, I like that. :)

    If those cargo containers had been sold years ago I'd have several on my place now.
     
  11. G30SF/F-250

    G30SF/F-250 Pinky Out Platinum Member

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    I was shocked to see how cheap they are! 40' for around $3,000-$4,000.
     
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  12. M2 Carbine

    M2 Carbine

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    It isn't for every one but one of the smartest things we did years ago was to by land (and live on it).
    Over the years the land's value has increased many times over what we paid for it.

    The only regret is we didn't buy 10-20 times more than we bought.
     
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  13. WeeWilly

    WeeWilly

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    I have a friend who is a farmer in the Central Valley here in CA, he buys them at GSA auctions unbelievably cheaply. It is pretty much all he uses for storage nowadays.
     
  14. TheDreadnought

    TheDreadnought

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    Find a nicer place to RENT.

    Homeownership as an investment with significant returns is a myth. There were significant opportunities to profit from home ownership in "the old days" but those opportunities are not available today.

    People often buy a home, and get a big pile of cash when they sell it, and feel good about the money they "made" on the transaction. However, that doesn't really capture the whole transaction. Consider this:

    If you bought a home in 2005 for $200,000. If you sold that house in 2015, to BREAK EVEN you would have to sell it for $398,000.

    People forget about all the expenses associated with owning a house:
    - Repairs & upkeep
    - Property tax
    - Mortgage interest
    - Homeowners insurance
    . . . and so on.

    That's not to say that there aren't some good reason to own rather than rent. If you want to do extensive customization for example.

    But home ownership will almost never build wealth for you. Given fluctuations in the real estate market, it actually exposes you to a huge amount of risk, with very little upside in most cases.

    Just rent.
     
  15. G30SF/F-250

    G30SF/F-250 Pinky Out Platinum Member

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    :chatter:



    :supergrin:

    I will pick "Own My Home" any year. :wavey:
     
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  16. TheDreadnought

    TheDreadnought

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    Yeah. . . once your mortgage is paid off. . . try not paying your real estate taxes, and then tell me who "owns" your home.

    Here's a preview. . . you just rent your home from the County.
     
  17. G30SF/F-250

    G30SF/F-250 Pinky Out Platinum Member

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    :chatter:

    Keep renting and don't worry about me over here. :wavey:
     
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  18. nsl

    nsl

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    I kind of agree with TheDreadnought, but you are screwed either way.
    I actually own this home, but it is almost like owning and paying taxes on a prison cell.
     
  19. F106 Fan

    F106 Fan

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    Boy, I'm glad I didn't get this advice in '86 when I bought a rather small house for $86k. I sold it in 2003 for $290k. In the meantime, I had a place to live, I could deduct the mortgage interest and property taxes and it cost less than half what it cost to rent. It even made a profit when I rented it out for a year or so while I worked overseas. I had to drive a little farther but I can drive a long way for about $800/mo in out-of-pocket expense reduction (rent vs buy). Plus, there is no increase in equity if you rent.

    OTOH... I was offered the house back for $130k in 2008 (?), As a guess, it's probably back in the $200k range today. It's just close enough to Silicon Gulch to be workable but far enough out to not be insanely priced. Then too, traffic has gotten worse.

    What do I care? I'm retired and my only commute is to the range and back.
     
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  20. JMS

    JMS 02

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