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Old 11-08-2018, 06:27 PM
 
23,127 posts, read 18,288,092 times
Reputation: 10666

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Quote:
Originally Posted by inquisitive2 View Post
What also keeps the market up is the influx of non-residential students that come here for school, rent and stay. If college students stayed at home, lived with parents, and went to school locally our costs of rent and real estate would not be what it is.

What???

Quote:
Originally Posted by inquisitive2 View Post
Finally, many foreign investors have real estate and business holdings purchased low and then priced for maximum profits with no concerns for locals affordability.
And why would they? People don't invest in real estate as a form of charity.
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Old 11-12-2018, 08:50 AM
 
3,808 posts, read 3,108,470 times
Reputation: 3332
Quote:
Originally Posted by Louisville Slugger View Post
My mortgage is fixed for the next 15 years and I could potentially be mortgage free by 45.
This is the huge upside which pro-renter boosters tend to conveniently leave out of their arguments ... as though a mortgage is permanent condition or 30 years of interest is a given.

I appreciate the alternative views and benefits, but given the turbulent financial markets markets I'd much rather throw capital at mortgage debt than watch my SQ and AMD holdings boom/bust. Timing is everything in life and I'm not sure I'd want to heading into 2020 as renter relying on markets to see an upside - the population numbers, migration trends, and market momentum will be working against you. It really depends on your age and goals.
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Old 11-12-2018, 10:39 AM
 
786 posts, read 774,884 times
Reputation: 800
Quote:
Originally Posted by Shrewsburried View Post
This is the huge upside which pro-renter boosters tend to conveniently leave out of their arguments ... as though a mortgage is permanent condition or 30 years of interest is a given.

I appreciate the alternative views and benefits, but given the turbulent financial markets markets I'd much rather throw capital at mortgage debt than watch my SQ and AMD holdings boom/bust. Timing is everything in life and I'm not sure I'd want to heading into 2020 as renter relying on markets to see an upside - the population numbers, migration trends, and market momentum will be working against you. It really depends on your age and goals.
I am doing this because if I don't meet the "love of my life" and have kids it would be really nice to have no mortgage by 45. Automation and ageism is what worries me more than any potential market crash. I want to have as little debt as possible so I can pretty much work at almost any salary and still pay all my bills comfortably.

It's crazy how much debt some of my married friends are taking on. They must be doing very well.

If I do meet someone, maybe she can move in with me, save her salary for a few years, then we use that plus the equity in my condo to buy a nice place. Life rarely works out the way you envision it though.

Last night I watched an episode of Anthony Bourdain: Parts Unknown. He was in Singapore. It's amazing how much control the government has over there. However, there are no "sketchy" neighborhoods and I think if I remember correctly almost 80% of the population owns their own property. Plus they have universal healthcare. Affordability isn't really an issue either. Prostitution is legal and the food scene is amazing.
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Old 11-13-2018, 03:12 PM
 
Location: NYC/Boston/Fairfield CT
1,853 posts, read 1,937,874 times
Reputation: 1624
Quote:
Originally Posted by Shrewsburried View Post
This is the huge upside which pro-renter boosters tend to conveniently leave out of their arguments ... as though a mortgage is permanent condition or 30 years of interest is a given.

I appreciate the alternative views and benefits, but given the turbulent financial markets markets I'd much rather throw capital at mortgage debt than watch my SQ and AMD holdings boom/bust. Timing is everything in life and I'm not sure I'd want to heading into 2020 as renter relying on markets to see an upside - the population numbers, migration trends, and market momentum will be working against you. It really depends on your age and goals.
Spot on. I invest in real estate and have mortgages for those properties, however for my personal residence (or what used to be) in Cambridge, I have aggressively paid down the principal balance in an effort to remove the debt. There are many who say, interest rates are so low/its like free money, you can deploy your capital elsewhere and get better returns etc. - however the reality is that nothing beats the peace of mind of having a paid off property because:

- Regardless of where the market goes, you'll always have a size chunk of equity, that you can tap into, should the need arise.
- Since principal and interest are the largest portion of your housing debt service, you will have significantly more free cash flow. Sure you will need to maintain insurance/pay taxes & condo fees, however they should be a smaller portion of your income.
- You will have met one of the key, basic necessities (shelter).

I have accelerated my mortgage payoff for these reasons.
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Old 11-13-2018, 03:20 PM
 
Location: NYC/Boston/Fairfield CT
1,853 posts, read 1,937,874 times
Reputation: 1624
Quote:
Originally Posted by Louisville Slugger View Post
I am doing this because if I don't meet the "love of my life" and have kids it would be really nice to have no mortgage by 45. Automation and ageism is what worries me more than any potential market crash. I want to have as little debt as possible so I can pretty much work at almost any salary and still pay all my bills comfortably.

It's crazy how much debt some of my married friends are taking on. They must be doing very well.

If I do meet someone, maybe she can move in with me, save her salary for a few years, then we use that plus the equity in my condo to buy a nice place. Life rarely works out the way you envision it though.

Last night I watched an episode of Anthony Bourdain: Parts Unknown. He was in Singapore. It's amazing how much control the government has over there. However, there are no "sketchy" neighborhoods and I think if I remember correctly almost 80% of the population owns their own property. Plus they have universal healthcare. Affordability isn't really an issue either. Prostitution is legal and the food scene is amazing.
You are very smart person for doing this.

As for those married friends, you'd be surprised how many are stretched thin (financially) or will be struggling should one of the earners lose their job. Shifting away from your friends and talking about married, "middle class" people and how much they are spending to chase the best school district for their kids, after school activities, expensive vacations and other costly activities that there is no surprise that they need $200K+ annual income to be "comfortable." These choices, in many instances, are reliant on two income households or one person making a ton of money/while working long hours -- in an economic downturn, these families will feel the negative effects of being overextended financially, if you want to see a good, related movie, I recommend The Company Men with Ben Affleck (https://www.imdb.com/title/tt1172991/).
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Old 11-13-2018, 06:58 PM
 
7,912 posts, read 7,751,223 times
Reputation: 4146
It all depends on what your lifestyle is. Rates might seem low but to be honest rates keep rising. Vs the late 70's and early 80's any rates seem low! No one in their right mind wants an ARM these days.

There's different lines of thought of course. Dave Ramsey will talk about budgeting and paying things down but not specifically investing. At the same point there's groups like FIRE - Financially Independent Retire Early. Some go to extremes to invest but again it depends on your lifestyle. It's one thing to cut cable. It's another to cut your heat and warm your apartment with the oven!
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Old 11-14-2018, 08:25 AM
 
3,149 posts, read 2,074,480 times
Reputation: 3366
Be careful what you wish for with the finding someone you love bit. I was a minimalist in my pre steady woman life. I would be fine with 4 wallnuts and a banana for dinner. Now I find myself spending a lot more on groceries and even utilities having her around a bunch. We do love cooking for eachother and those things. But i'm just saying. It's far easier to be frugal when it's just you.
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Old 11-14-2018, 08:30 AM
 
Location: RI, MA, VT, WI, IL, CA, IN (that one sucked), KY
41,938 posts, read 36,754,792 times
Reputation: 40634
Quote:
Originally Posted by GeePee View Post
Be careful what you wish for with the finding someone you love bit. I was a minimalist in my pre steady woman life. I would be fine with 4 wallnuts and a banana for dinner. Now I find myself spending a lot more on groceries and even utilities having her around a bunch. We do love cooking for eachother and those things. But i'm just saying. It's far easier to be frugal when it's just you.


So true. I'm stopping at the market more. I never snack, she snacks (I'm two big meals, she is 5-6 tiny ones, a grazer). Oh, those gluten free bars, better have a couple of those around, good bacon for the next morning... it adds up.
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Old 11-14-2018, 08:48 AM
 
Location: Westwood, MA
5,037 posts, read 6,879,075 times
Reputation: 5960
Quote:
Originally Posted by New Englander View Post
Spot on. I invest in real estate and have mortgages for those properties, however for my personal residence (or what used to be) in Cambridge, I have aggressively paid down the principal balance in an effort to remove the debt. There are many who say, interest rates are so low/its like free money, you can deploy your capital elsewhere and get better returns etc. - however the reality is that nothing beats the peace of mind of having a paid off property because:

- Regardless of where the market goes, you'll always have a size chunk of equity, that you can tap into, should the need arise.
- Since principal and interest are the largest portion of your housing debt service, you will have significantly more free cash flow. Sure you will need to maintain insurance/pay taxes & condo fees, however they should be a smaller portion of your income.
- You will have met one of the key, basic necessities (shelter).

I have accelerated my mortgage payoff for these reasons.
As someone who also aggressively pays down my mortgage, the only real benefit is the peace of mind. You would do better putting that money in equities. Paying down your mortgage is a really low risk investment with a corresponding low return. It is a much better investment than spending the money and can be an incredibly useful strategy for people who feel compelled to spend what they have.
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Old 11-14-2018, 08:52 AM
 
3,149 posts, read 2,074,480 times
Reputation: 3366
Quote:
Originally Posted by timberline742 View Post
So true. I'm stopping at the market more. I never snack, she snacks (I'm two big meals, she is 5-6 tiny ones, a grazer). Oh, those gluten free bars, better have a couple of those around, good bacon for the next morning... it adds up.
https://cdn.shopify.com/s/files/1/11...24965623592856

Last edited by CaseyB; 11-15-2018 at 08:45 AM.. Reason: copyright
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