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View Poll Results: Mortgage or Investments
No mortgage pay 350k for house 54 51.92%
Mortgage with money in investments 50 48.08%
Voters: 104. You may not vote on this poll

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Old 09-07-2019, 05:23 AM
 
306 posts, read 236,953 times
Reputation: 615

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Quote:
Originally Posted by mathjak107 View Post
Just track down and ask the people who’s house we were awarded in that tax lien sale we took part in .

I wrote about that adventure a few times ...it worked out terrible for us as an investment but these people did lose their house to us
Yes, it's true, you do have to pay your taxes.
Sorry someone else's bad fortune turned out to be a bad investment for you.
Funny how the universe works.
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Old 09-07-2019, 06:15 AM
 
6,480 posts, read 4,885,492 times
Reputation: 13592
Quote:
Originally Posted by Larry Caldwell View Post
......Interest rates are climbing, housing prices are past their pre-crash highs, and the equities market has stalled. A wise investor will switch to a new strategy. The time to buy on margin is after the crash, not before.
It appears you did not get the memo.

Interest rates are low. Mortgage rates are very low and have been dropping again. The Fed just dropped their rate and is planning on another cut.

Of course many home prices have climbed to the pre-2008 levels. I would hope so after more than 10 years.

There is nothing consistent about the stock market. There are always sell offs, ups and downs and flat spots. You might want to check your returns for the past year. Mine have been decent in spite of the trade war. It seems very likely that Trump will resolve the trade war before the election and the stock market will take another big jump forward. Personally I don't bet on such things.
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Old 09-07-2019, 07:23 AM
 
253 posts, read 91,713 times
Reputation: 1191
When I move in retirement I have even thought about renting. My current plan is to find a house, put half down and mortgage half. People look down at renting but there is a huge upside - the ability to get used to the area and if you don't like it move. I lived in apartments where once the lease was up it was goodbye charlie for many reasons. No harm, no foul, I'm leaving and that's it. Buying and selling houses is a huge job, and comes with risks.
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Old 09-07-2019, 08:05 AM
 
Location: Loudon, TN
6,059 posts, read 5,003,316 times
Reputation: 20657
It's very possible to leverage your primary home investments with a mortgage, and if you are financially squared away, you can certainly "time the market" in housing. If you buy and sell strategically, you can easily make a lot of money using "other people's money". I've done it a couple of times, reaping a couple hundred thousand in the process. It's a lot less risky than many other short term (10 year-ish) investments. Buy on the low, sell on the bubble, rent until the after the crash. Wash, rinse, and repeat. I have to pay for a place to live anyway, I might as well make some money doing it, and without tying up my capital so it can go out and earn in the equities market.

I'm not some kind of tycoon, so I'm not really talking about super high priced homes here. I wish I was! I started this process accidentally with my first home, but quickly saw how it could work to my advantage and have adopted it as my ongoing strategy.
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Old 09-07-2019, 08:08 AM
 
Location: SoCal
14,057 posts, read 6,724,733 times
Reputation: 10732
High transaction cost is a problem with real estate. However, I always rent when I move to a new area, even when my corporation gives some benefits for moving house and stuff. It’s too stressful to do a few transactions at once, selling and then buying at the same time.
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Old 09-07-2019, 08:44 AM
 
6,480 posts, read 4,885,492 times
Reputation: 13592
Quote:
Originally Posted by TheShadow View Post
It's very possible to leverage your primary home investments with a mortgage, and if you are financially squared away, you can certainly "time the market" in housing. If you buy and sell strategically, you can easily make a lot of money using "other people's money". I've done it a couple of times, reaping a couple hundred thousand in the process. It's a lot less risky than many other short term (10 year-ish) investments. Buy on the low, sell on the bubble, rent until the after the crash. Wash, rinse, and repeat. I have to pay for a place to live anyway, I might as well make some money doing it, and without tying up my capital so it can go out and earn in the equities market.

I'm not some kind of tycoon, so I'm not really talking about super high priced homes here. I wish I was! I started this process accidentally with my first home, but quickly saw how it could work to my advantage and have adopted it as my ongoing strategy.
In my area lots of houses are flipped. Some are done professionally. Typically that involves remodeling of kitchens and baths, flooring and fresh paint. Other houses are flipped by the homeowner. Typically they are in the house for a few years, make improvements slowly with part of their free time and then sell.
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Old 09-07-2019, 10:38 AM
 
Location: Loudon, TN
6,059 posts, read 5,003,316 times
Reputation: 20657
I'm not really talking about flipping. That's buying, fixing up, and quickly selling. I'm talking about making money by buying and selling my own primary residence at advantageous times, in a serial fashion, at an interval of 6 to 10 years following the boom-bust cycle of the local housing market, and using the leverage of a mortgage to accomplish that. (whew, that was a long sentence.) Many people buy and sell for their personal reasons completely at odds with the market and thus don't make an profit, or they sell in the high market and then immediately buy in that same escalated market and end up underwater in the next bust. I sell as the bubble is approaching a burst, and then rent until the market drops before buying again. Alternatively, I have also bought in a less escalated area, and waited for it to become hotter over the years as suburbia continues to sprawl. It takes patience, this is not a get rich quick scheme. It's simply following the market trends and being smart about the timing of my real estate activities. Some people like to flip houses, but some have lost their shirts that way too. With interest rates as low as they have been in the last 8 years or so, it makes sense for me to use other people's money, and invest my profits at a higher rate.
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Old 09-07-2019, 10:59 AM
 
73,298 posts, read 73,074,368 times
Reputation: 50886
Quote:
Originally Posted by seasallyttle View Post
Yes, it's true, you do have to pay your taxes.
Sorry someone else's bad fortune turned out to be a bad investment for you.
Funny how the universe works.
We made money but no where near what we should have
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Old Today, 03:46 PM
 
Location: Mount Airy, Maryland
10,676 posts, read 6,083,545 times
Reputation: 16754
Quote:
Originally Posted by seasallyttle View Post
Yes, it's true, you do have to pay your taxes.
Sorry someone else's bad fortune turned out to be a bad investment for you.
Funny how the universe works.
You seem to be implying MJ did something morally wrong in purchasing this house.
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