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Old 10-16-2015, 07:42 AM
 
1,577 posts, read 2,201,059 times
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Quote:
Originally Posted by Serious Conversation View Post
For a lot of folks, $956/month isn't a pittance - it's a significant sum of money. Housing is most folks' largest expense.
For my situation as a single mother and now on my own, having a paid off home carried me through some rough times of layoffs, working two menial jobs to make ends meet for a while, going to night school for vocational training, helping my kids through college, and then thankfully for the last 12 years steady employment (with the exception of a layoff again but quickly found another job last year at the same organization). Now I am able to put away $550-650/mo in personal savings, aside from the max contribution to my 401K, and have no debt. That savings is a lot of money for me.
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Old 10-16-2015, 07:51 AM
 
Location: Tennessee
23,572 posts, read 17,553,447 times
Reputation: 27640
Quote:
Originally Posted by golfingduo View Post
Please see the comment above. Condos are not for everyone but if you have a good condo association they will provide you good value for that cost.

If you worry that the association is going to go hog wild then become a part of the process. Those meetings have to be held in public. Go to them. Become a voting member if you can. Then you can curb their craziness.
I didn't look at this specific unit, but the condos were in the development linked to below.

For $180/month, the water is paid, as well as maintenance/damage to the outside of the unit/communal property, snow removal, and access to a club house with a very nice pool area. The community has walking trails in it and some larger playgrounds for kids.

It's not hog wild and probably not a bad value.

13289 Komatite Way #1200, Fishers, IN For Sale | Trulia.com
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Old 10-16-2015, 08:12 AM
 
13,880 posts, read 7,391,112 times
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The longest I've ever held a mortgage before zeroing it out is 5 years. Unfortunately, I've needed to sell homes twice as part of a divorce settlement. Try doing "divide by 2" twice to your net worth and see what it does to your financial planning. My net worth was higher, inflation-adjusted, in 1998 than it is now.

I like the peace of mind knowing that my home is paid for. No matter what happens, I have a roof over my head and can dial back my cash burn to exist indefinitely. The wave of foreclosures in the Great Recession should be an object lesson for that kind of financial approach. Similarly, I have what is probably an excessive cash emergency fund of 1x my net pay. Dialed back, I could probably live on that for 3 or 4 years.
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Old 10-16-2015, 09:31 AM
 
12,705 posts, read 9,964,692 times
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Quote:
Originally Posted by emm74 View Post



You have zero idea what interest rates and lending standards will be 15 years from now, so there could be all kinds of problems with your recommended approach.
This is called black and white thinking - you're basically arguing that since I don't know everything with absolute certainty, I therefore know nothing.
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Old 10-17-2015, 01:57 AM
 
6,353 posts, read 5,157,447 times
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Quote:
Originally Posted by Serious Conversation View Post
For a lot of folks, $956/month isn't a pittance - it's a significant sum of money. Housing is most folks' largest expense.
I guess so… where I live, $956 a month won't buy a studio apartment any more.
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Old 10-17-2015, 03:40 AM
 
71,514 posts, read 71,694,121 times
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they get 400- 500 a month justfor a spot to to park your car in the area our investment apartments are in over by central park
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Old 10-18-2015, 11:32 PM
 
Location: Gulf Coast
1,158 posts, read 648,842 times
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How many years does one need to invest to make it equal the interest payments on a mortgage? I know that's a variable based on interest earned, interest on a mortgage etc. What does having poor cash flow due to economic downturn do to this scenario.

We've lived in 2 mortgage-free houses. Both times we were in better shape even having large amounts of "stuff" to pay that came along.

What does being mortgage-free do to one's sense of well-being and all over health and what's that worth? Being mortgage-free these days for us might mean an earlier retirement which I'm sure would result in better health and longevity. We're too far along to be throwing money in iffy investments. I'm looking forward to the day when we're again mortgage free.
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Old 10-19-2015, 04:19 PM
 
36 posts, read 32,700 times
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we currently have 10 mortgages but will be paying one off in the next 3 weeks, & are selling one of our rentals which will eliminate a mortgage as well as give us a big check from the equity that we will use to pay off another mortgage as well as put some cash in the bank. so, we should be down to 7 by the end of the year. mortgage debt is not a bad thing as it has allowed us to buy a large number of rental properties over the years. it's nice to know that the tenants are buying the houses for us by paying off our mortgages while we enjoy the tax deductions.
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Old 12-09-2015, 09:56 AM
 
4,479 posts, read 4,741,265 times
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yes and no
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Old 12-26-2015, 09:07 AM
 
4,665 posts, read 2,637,440 times
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I'm 28 and plan on paying off my home next year before I turn 30, my rate is 4.5% and I'll save about $400/mo from the mortgage. I don't have a good retirement plan, but I started paying extra to my house a few years ago and decided to keep going with my plan on paying it off before 30. I have no money in any retirement account, but I was thinking about maxing out an Ira before the year is over. I'm self employed, so a 401k is not really doable. After my home is paid off I plan on maxing out an Ira every year and buying a 4-plex with a mortgage.
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