well, me=poor

for about the next 30 years or so. paperwork signed, moving in a week or two.

 

You're not poor, you're invested.

Welcome to the wonderful world of tax deductions and building equity.

 

Just keep telling yourself how much you're going to sell it for when you retire. That's what I do...

 

is that wha you call it G.T.? Building equity? I call it "the bank making a ton-o-cash on me".

 

LOL. Yeah, that too. But it's still a better deal than rent, where the landlord gets 100%, and there are no tax deductions.

My first place was a condo, with a 30 year mortgage. I made some money when I sold it to move to Memphis, and when I bought down here, I had a much better down payment and managed a 15 year mortgage, which gives MUCH less money to that friendly banker. (15 year mortgage only costs me ~ $150.00/month more than a 30 year mortgage... do the math...)

Most of us don't stay in one place for 30 years, or even 15, but most of us treat mortgages more like rent, looking for the cheapest monthly payment instead of planning to own their own homes. Keep the mortgage as small and short as possible, consistently, every time you move, pay as much as you can afford to pay it off early, and eventually you'll have enough equity to buy and own it yourself, wherever you end up.

Same thing applies to your cars. Instead of a killer vehicle with a 5 year loan, get something you can pay off in 3, and save the payment amount after it's paid off rather than spending it on trivia. Next time you need a new car (8-10 years, not just the next time something sexy comes out), you can probably buy it for cash. That's what I did in 2003.

 

Treat life, and finances, more like a game of chess, and less like a game of checkers.

 

i'd give anything to be rich enough to be poor. I was hoping miracles would occur, and I could when i moved, but no such luck, i'd need a co-sign, and i know noone willing to do so. Someday, all things in time.

 

Hmmm, 9 yr old home cost $90,000 new. Sells now for $265,000. Capital Gains exclusion is $250,000 per person- that is $500,000 per married couple every three years.

Until 2011 when the tax code abuptly changes without congressional intervention, America is still the land of opportunity!

Not to mention that interest rate were fantastically low for a looooooooong time.

 

Just so Wenchie. I couldn't afford one at your age either. The first house I looked at and couldn't afford was $23,000.00, around 1974. I was around 24. (That was the purchase price, not the downpayment.) Or course, back then I was busting my butt to make around $3.00/hour.

You'll get there Wenchie.

 

I don’t see it that way at all, unless you're foolish and try to buy something way more than you can afford, and then sell it before you have any actual equity in it. Even then, the extra freedom of your own pad has gotta make it better than rental.

I've bought and sold heaps of homes throughout different countries that I've lived in, and made a big chunk of cash each time. I had to sell up again a few years back. But it at least enabled me to clear all of my debts, including the vehicles, and still put a hefty 60% deposit on my current dwelling. It's already worth about $100K more than I paid for it, and I don't owe half of that amount. So I could sell next week and still make $150k. Not a bad investment for less than 2 years at (much) less than rental repayments. An extra fifty bucks a fortnight lowers the time period from 30 years to a max of 12, saving at least 18 years worth of interest.

I just look at owning properties as the single greatest financial asset that most common folk are likely to own.



Oh, b.t.w., gongrats on yer new pad, FW.

@ Wenchie:- Don't worry it WILL happen.

 

glad for you and your new home!!

 

AHA! That explains why you needed to get a refrigerator! Good luck to you!

 

No no. HE didn't need a refrigerator... the BEER needed a refrigerator.

 

LOL....good one

 

Hi Kodo,

I've got an appointment with the mortgage advisor tomorrow afternoon, I'm trying to think of everything I need to ask. Any extra tips.

We've been told we can borrow about £142,000 tops, I don't want to get that much personally, but we want to get a bit extra to pay for our wedding.

Anything in particular I apart from the obvious should be asking while I'm there?

Cheers.