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Wow! I actually was referring to concrete block structure - the "little pink houses" of Old Florida. Post 2005 manufactured homes actually withstand storms almost as well. The ones you linked are top notch. I would love to find that in my price range. What is a CBS home?
Wow! I actually was referring to concrete block structure - the "little pink houses" of Old Florida. Post 2005 manufactured homes actually withstand storms almost as well. The ones you linked are top notch. I would love to find that in my price range. What is a CBS home?
Ah..you brought back memories. Rented one of those way back in the late 70's on Miami Beach.
Small 2/1 with a carport. Neighborhood was full of them then. That whole area got razed with towering condos replacing them.
Ok, so what are my justification? Mostly "warm fuzzies" and possibly slightly irrational fears.
I like owning things outright.
There you have it. I like owning things outright, as well.
I have an 82-year-old cousin, a widower, who lives in CT. He believes strongly in the stock market, but due to living in the same home he had built when he first married, his house was totally paid for. 2008 came along...all the young hot-shot stock brokers and financial wizards told him to stay invested. You know the rest. He was 75, and went from being a millionaire to a few-hundred-thousand-aire.
He's still in the market, and it's getting toppy again. This time he claims he "can't" get out...he needs the returns to live on. High taxes in CT, maintenance around the property (summer mowing/winter plowing) plus any home repairs. He also has a lady who comes in to clean weekly. Expenses add up.
My best advice to you: pay for your home outright. If you can't/decide not to, at the very least, put the full pay-off price in something extremely safe, not in stocks. 'Buy and hold' is for younger folks, who have time to make it up. Second piece of advice: avoid places with high taxes. Our taxes for 33 acres and a brand new 2-bed, 1-bath ranch are just over $800 per year. Be careful with HOAs. They can raise the fees. Finally, consider under-buying (less $$$ than you can afford). No reason to blow it all, just because you have it.
Ask yourself how you'd be situated if the market lost 22% this fall. If OK, then OK!
I do not think you should take you tax deferred money out as you will have a big tax bit. I would go for a 30 year mortgage and prepay a little each month if you can. The 30 year will cost you more than the 15 but if you have financial problems the payment might be easier to meet.
If I had the cash from other sources I would pay cash, but that is because I do not want a monthly payment.But inflation and low interest rates now probably make a mortgage a better financial deal.
I do not think you can live in the home. You can buy almost anything within an IRA if you can find a trustee to hold the assets and you do not personally benefit from the assets like living in the home or art work you display in your home.
Now if you rented the home to your neighbor and he rented his to you that might work but I still would not want to do that.
Thinking through the pros and cons of this. Looking buying a little piece of paradise, preferably a CBS built cottage but possibly a manufactured home in a restricted deed community with clubhouse and pool. That last bit means it is a neighborhood with a HOA that maintains the pool and clubhouse and that activities are organized by residents as opposed to a for profit company that leases lots. Big difference in cost; some I am looking at it is in the range of $200/month for HOA/taxes versus $600/month lease. Anyway, probably looking at a purchase in the $100k or under range.
If you are looking at purchasing a property for less than $100K, at that price and with today's loan rates your payments will be ridiculously low. A mortgage would make the most sense, with the deduction. Pretty awesome to find a place in that price range.
Do whatever will help you sleep at night. A mortgage might be a better idea than cashing out investments. Warm fuzzies are not to be underrated!
Indeed.
If I were single, given the current mortgage rates, I would toy with the idea of a 30, 40 or 50 year mortgage especially since I am 67 and could care less if I ever paid it off. Let that mortgage go on for a thousand years and ask me if I care.
Cash is king.
Cash is always king.
Remember the golden rule; he who has the cash always rules.
I'd keep my claws around the cash but you do what is best for you.
Interesting that no one has commented on my potentially irrational fear - the fear of a collapse.
Worried about them coming after your cash in the bank or stock/mutual accounts? They could change the laws and come after your fully paid for home if you go BK. If I worried about things like that I couldn't get out of bed in the morning.
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