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Do you really think its the Ramsey influence? I have heard his show on occasion and for the most part he teaches economics to babies. While that may not apply to me some people do need that type of education or baby sitting in regards to their money.
im not sure how much responsibility ramsey specifically has. it just seems you have a lot of fools out there preaching being anti-debt just for the sake of being debt free. some people are linking debt to overspending, but there doesnt have to be a link there.
look at quimby with his "and if it goes down in the future" response. its very easy to be mr. negative and have a false sense that you are smarter than everyone else. sure, the property value may go down but thats part of why you diversify and dont overspend. renting is also an option and that may be the best option. but it should all be based on numbers and rational thought and can be adjusted based on someone's risk tolerance. quimby doesnt really know what he is talking about anyway.
All I am saying all those people attending his seminars are paying for his cars, and houses cash (dave ramsey)!... If I had the opportunity to get 6% ( which is not risk free) rather than paying my mortgage which is lower at 3.875% I would still pay my mortgage faster.
My mortgage is 1400 and I pay exactly $4000.0 each month... so I am paying about $2990 into the principal, which that principal money goes up quick like around $8 each month..
heck, I can do both... I have invested 70K this year alone in my business and still paying the same amount to my mortgage. I started at $240k and now is down to 138k. after that I will take on other properties and pay them off quick.. and if anything happen I will live from the rents.
I wanted to buy an 80k to 120k home at the beginning but I was wrong.. from 100k went to 150k because the houses weren't that great. then from 150k to 180k ...then 200s lol at the end we got a 240k
I dont get people that go into $500k homes because their salary says they can buy it. Then remember that is not the same someone making $250k a year and buying a 500k house than a person making $50k a year buying a 100k house. If the two loses their job the 50k salary can be replaced easier than a 250k salary. Common sense that some dont even think about because its so simple.
In my mind 2 years ago was to buy a 100k home and pay for it in a year or so. But, I had the room to buy something better. But new buyers that have a set price that cant go over, dont make the mistake to get the maximum you can afford. And dont buy unless you have at least 20% down (minimum) plus you save a hundreds by not paying mortgage insurance. Just my advice.
All I am saying all those people attending his seminars are paying for his cars, and houses cash (dave ramsey)!... If I had the opportunity to get 6% ( which is not risk free) rather than paying my mortgage which is lower at 3.875% I would still pay my mortgage faster.
My mortgage is 1400 and I pay exactly $4000.0 each month... so I am paying about $2990 into the principal, which that principal money goes up quick like around $8 each month..
heck, I can do both... I have invested 70K this year alone in my business and still paying the same amount to my mortgage. I started at $240k and now is down to 138k. after that I will take on other properties and pay them off quick.. and if anything happen I will live from the rents.
its fine to do this for certain people. I would say this is a very risk averse strategy and someone doing it should just understand that. you are uncomfortable with the belief that you can beat a 3.875% (a bit less considering tax deduction) with your invested money so you choose to pay off the loan. its wrong to do it simply because you have a mental issue with debt, it should be done based on the numbers, risk tolerance, market expectations, etc.
well, In the future I want to buy a house in the beach for around 1.5 million. my house is worth around $300k in 2 years after it is paid off then I will start saving for that 1.5 million home. I wont buy unless is cash though.. I wont go into debt again. Hopefully is faster than 10 years from now. And by then I maybe have over 10 rental properties producing money too. I am betting that my business grows a lot bigger though.. At this pace I wont have that in 10 years... maybe the money, but i wouldnt use all my funds just to be on a nice house, that would be nuts...
I am the kind of person that could have afforded a 800k home but chose to be in a 240k one.. because I dont know what will happen tomorrow.
I am the kind of person that could have afforded a 800k home but chose to be in a 240k one.. because I dont know what will happen tomorrow.
that 240k goes a lot further in your zip code than it does in mine. if you can get away with a less expensive house, that's definitely good for your long term financial security. well, I guess we can all survive in less, but we have wives and kids and they want more.
I don't even know what Dave Ramsay looks like much less what kind of crap he espouses...what I do know is that most on this forum know little about the process of money creation. If they did, well they wouldn't be spouting the things they are.
Debt can be useful in the hands of an adept investor or even a frugal home buyer. If someone has $250k in cash I would recommend they buy with debt vs. cash because I believe there are much better opportunities for that money to outearn a 4.5 pct rate longer term so why not borrow at 4.5 pct and earn 5.25?!
But I do belive purchasing a home in THIS point in time in NJ with the traditional 20 pct downpayment is generally speaking a bad move for most people. But it does depend upon the individual, their skill set, career etc.
You know what people say about opinions right? All I have said all along is people live within their means. Why is that so controversial? Could it be because so many here lived BEYOND their means and they need the rest of the world to act as irresponsibly to prop up their grossly overinflated sense of property value?!
I don't even know what Dave Ramsay looks like much less what kind of crap he espouses...what I do know is that most on this forum know little about the process of money creation. If they did, well they wouldn't be spouting the things they are.
Debt can be useful in the hands of an adept investor or even a frugal home buyer. If someone has $250k in cash I would recommend they buy with debt vs. cash because I believe there are much better opportunities for that money to outearn a 4.5 pct rate longer term so why not borrow at 4.5 pct and earn 5.25?!
But I do belive purchasing a home in THIS point in time in NJ with the traditional 20 pct downpayment is generally speaking a bad move for most people. But it does depend upon the individual, their skill set, career etc.
ok, I think this post was more clear than your others. I think its perfectly fine if you believe home prices are too high today and are likely for a drop. everyone is entitled to their own predictions and there is nothing wrong with predicting a drop. so if I believed that, I would suggest that someone rent if they needed to move. id advise someone who was looking to move just to get a nicer home to delay that decision if possible.
so you have someone that says "my kid is going to school soon and I want to move to westfield asap for education and quality of life." im assuming you would suggest that they rent in westfield, right? should they continue to own a home in Newark and send their kid to school there?
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because I dont know what will happen tomorrow.
