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Old 01-24-2008, 04:21 PM
 
Location: home...finally, home .
8,236 posts, read 18,523,823 times
Reputation: 17765

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no, actually my prices are staying quite static. Mine is a small townhome in a very disireable village (downtown ). They usually sell for full price in just two or three weeks. Of course, when I go to sell in June , the whole market will collapse. But so far it has not.
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Old 01-24-2008, 09:44 PM
 
Location: Lovelock, NV - Anchorage, AK
1,195 posts, read 4,995,077 times
Reputation: 465
The price here in Anchorage are goin up in the past few months my house has gone up 35,000, my house has a great location a decent view on the inlet and 1/2 acre very hard to find in town that doesn't require a 4x4 to get to. With the interest rates going down for home loans I'm hoping that I can still reap the benefits.
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Old 01-25-2008, 01:51 PM
 
Location: DC Area, for now
3,517 posts, read 12,056,039 times
Reputation: 2141
Quote:
Originally Posted by gypsydoc View Post
I'm not familiar with your housing market, but if it looks like the values are still going down, have you considered taking out a home equity loan and placing it in another type of investment - something conservative and comfortable... money market, or municipal bonds, perhaps? If the housing values are slipping, say 5-6% every few months or a year... would it make sense to capture the equity now in the form of cash so you don't suffer any major loss?

Then, since the equity was mostly out of your home, whether the values went down or whatever, you'd still have captured that equity at today's prices, not tomorrow's (assuming that they might still be lower). If prices go up again, you're still coming out ahead. Does that make sense? Just curious.. It is one thing to make money - it is something of an art to maximize and multiply it. Best...
I don't understand how taking out a loan preserves equity at all. Your house value might continue to go down, but then you have would have loan interest plus closing costs to pay out. It's a weak investment market for other vehicles and you won't get a dime more out of the house than what it is worth when it does sell, plus you have to pay off the equity loan too. Where is there any benefit or preservation of cash? Seems like even if it all stayed even, you would still lose money on the interest and closing costs.
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Old 01-25-2008, 03:31 PM
 
Location: Forests of Maine
30,692 posts, read 49,476,475 times
Reputation: 19136
If you ended up selling the house for half of it's current equity, then you would be nailed.

If you were to plan on holding onto the house for twenty years, cashed out the equity and re-invested it today; then either that new investment will blossom and make you a ton of money, or it will tank and leave you with only your shirt and a huge mortgage payment.

Owning MFRs [Multi-Family-Residences], I have cashed out the equity before, for other investments [other apartment buildings].

However in those cases, each MFR was showing me a profit each month. None of them cost me a dime to purchase and none of them cost me a dime to operate. And I was not planning on selling them. Who cares if the market value of a MFR tanks? So long as it is full of tenants paying rent every month. So I can see the purpose of taking cash out from the equity on occasion.

But it is a risk, and I would hate to do it with my own money.

IMHO, Investing is better done using other folk's money.

Good luck.
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Old 01-30-2008, 05:35 PM
 
Location: Portland, Oregon
543 posts, read 1,003,336 times
Reputation: 460
Default types of risk

Quote:
Originally Posted by Tesaje View Post
I don't understand how taking out a loan preserves equity at all. Your house value might continue to go down, but then you have would have loan interest plus closing costs to pay out. It's a weak investment market for other vehicles and you won't get a dime more out of the house than what it is worth when it does sell, plus you have to pay off the equity loan too. Where is there any benefit or preservation of cash? Seems like even if it all stayed even, you would still lose money on the interest and closing costs.
If your house was worth $250,000 last year and it's only worth $200,000 now (maybe those numbers are far from your situation... I'm only using it as an example), you just lost $50,000. That's a risk... It's not the kind of loss that you really feel unless you wanted to sell the house, or an emergency came up and you needed the money.

When you are retired and not working, it is difficult if not impossible to get at your equity anyway because banks won't lend you YOUR money from your house if you don't have a job. That is a risk.

If a homeowner takes his equity out, (say $50,000) and the value of the house goes down $50,000, even when paying the monthly payments and costs involved, and if it was in a suitable investment (not everything is going down...), you'd come out ahead of the $50,000 total loss. If your payments were $500 a month for that loan, you'd have close to 8 years of payments with just doing nothing... plus you wouldn't have to go through a bank or any other system to use it if you needed to... like if there was a really great 4 plex with renters already in it that cash flowed and paid that mortgage plus more.

Preserving capital is one thing that people want to do. You already worked hard to acquire what you did... Now, I would imagine, you want to not just save money and break even, but you would want your assets to continue to grow.

I am not suggesting you do anything of a financial nature that would make you uncomfortable. But I am suggesting to stay curious about your financial options and learn all you can. Best wishes!

I hope that helps.
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Old 02-06-2008, 06:20 PM
 
Location: Lovelock, NV - Anchorage, AK
1,195 posts, read 4,995,077 times
Reputation: 465
Default 115 days to go

The countdown continues on, the excitement continues to build.

We have tons of paperwork to complete to make this happen as painless as possible.

Going to plan a day by ourselves no family popping in. will shut off the phone and sit down and do the paperwork. Our pot of coffee maybe a breakfast roll, a good solid ink pen along with a calculator and then we are set.

Hurray we are almost there.
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Old 02-06-2008, 07:55 PM
 
Location: Boca Raton, FL
5,177 posts, read 8,701,447 times
Reputation: 6199
Smile Days to go??

I got on this thread about 3 weeks ago; anxious to keep up with your 115 days to go - are you moving also?

I am learning a lot being on these sites. It has made me a lot less afraid of the future. I always worried about being lonely and not having enough to do. I keep busy now b/c I work but my parents drilled into me that one must be productive.....(they were also members of the Clean Plate Club and I must admit, I suffer from that ailment too - always trying to lose weight!!
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Old 02-07-2008, 10:41 PM
 
Location: Lovelock, NV - Anchorage, AK
1,195 posts, read 4,995,077 times
Reputation: 465
I understand that my husband was was always told to finish everything, now we are hoping that the excercise we will get will help down size the weight. We are relocating for the winter months. Nevada in the winter home in Alaska in summer, this has been our home for 35 years and the entire family is up here. Got to check in on the grandkids often you know.
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Old 02-17-2008, 11:26 AM
 
Location: Tampa, FL
27,798 posts, read 26,231,496 times
Reputation: 14611
It is 570 days from the start date to the end date, My retirement date 9/9/2009

Or 1 year, 6 months, 23 days excluding the end date
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Old 02-17-2008, 12:41 PM
 
Location: Forests of Maine
30,692 posts, read 49,476,475 times
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Quote:
Originally Posted by BucFan View Post
It is 570 days from the start date to the end date, My retirement date 9/9/2009

Or 1 year, 6 months, 23 days excluding the end date
Good luck
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