Should I buy my own place or continue to rent (rentals, condos)

[ebrooks]

Originally Posted by mysticaltyger

May be true in general, but there are always exceptions. I don't own but I have a nice net worth....nothing special by SV standards...but a lot more than a lot of people of my age & income level.

A lot of liquidity is a form of ownership

[ebrooks]

Originally Posted by otterprods

Was that inside a fortune cookie you just ate?

No, but you can put it inside a fortune cookie and put it where it will do the most good.

[mysticaltyger]

Originally Posted by ebrooks

A lot of liquidity is a form of ownership

I think so, but it wasn't clear from your earlier post whether you meant home ownership, or something else.

[ebrooks]

Originally Posted by mysticaltyger

I think so, but it wasn't clear from your earlier post whether you meant home ownership, or something else.

Mystical, I'm pretty fast on my feet about just what I mean.

[nmnita]

Originally Posted by fashionguy

Currently I rent a 1 bedroom apartment for around 2k$ per month.

I have around 150k saved. Let's say next year when I enter the market I have 200k at hand.

My annual salary is around 130k. Company stock is doing well, so total income before tax would be around 200k, but stock market is highly unstable so really can't predict the future.

I am 30 and single. I pay A LOT for tax.

I am not very comfortable in investing my money other than real estate. But I also am not sure that the current housing market is a good entry point.

On the one hand I don't like the fact that I am throwing away so much money on rent, and totally at the mercy of the landlords. On the other hand, buying a place is a long term commitment, and would be less flexible in case my financial situations or priorities change. Advice?

I happen to be a firm believer in home ownership, especially in a situation like you appear to be in. At least I would start looking to see what is out there. The market is coming back, but interest rates are starting to climb, so what you can get today for your buck might be a lot less in a few years. Why not take some, but not all of your $150 to $200,000 and use for a down payment. Keep the rest for a rainy day or other investments.

[mysticaltyger]

Originally Posted by ebrooks

Mystical, I'm pretty fast on my feet about just what I mean.

Well, it wasn't clear to me.

[ebrooks]

Originally Posted by mysticaltyger

Well, it wasn't clear to me.

Mystical, you insist on clarity. Loosen up. Where there is less clarity is where it gets interesting.

[ebrooks]

Originally Posted by otterprods

OK. Good. A lot of people tend to think that vested stock = cash and that the longer they leave it in the more it will be. So they're basically gambling in ignorance.

Normally I would say just keep renting if you're not into owning a home. But at 2k a month (and climbing) you're probably better off just buying a little condo or something. Just be careful to not get lured in by a bunch of stainless steel and other finishings and wind up over-paying.

As for general investments, there are plenty of mutual funds and CD's which are hardly any more risky than savings, as long as you have some time to let them mature. As for the long-term stuff, you can do what you want, but it often makes sense to leave them really aggressive as long as you don't plan on needing them within 10 years or more. Many of my funds went way under in 07-08 and are now back up higher than ever. It was a little scary to look at for a while, but a little patience saved me a lot of money, as opposed to just flushing them out of panic and then putting them in something less likely to bounce back quickly. If you look at your house as a way to make a bunch of money, you're setting yourself up for disappointment. That's not to say that it definitely won't, but it's just a slow-moving market right now. On the other hand, if you look at it as a nice place to live for a fair price, you cant really lose. It's been said before on here, but I'll say it again: Housing is primarily an expense not a source of income.

You buy a duplex. Live in one half and rent the other. Get one with garages. The rental pays for your loan. You save bucks in rent you don't pay. So in that respect it's a win-win. All the above a trade-off for low rent living shoulder to shoulder with your renter. But it's frugal and it should work. Owning a duplex or triplex or fourplex is a near-guaranteed hedge against economic hazards.

[mysticaltyger]

Originally Posted by ebrooks

Mystical, you insist on clarity. Loosen up. Where there is less clarity is where it gets interesting.

Eh, yes. I like clarity & will not apologize for it.

[ebrooks]

Originally Posted by mysticaltyger

Eh, yes. I like clarity & will not apologize for it.

No need for apologies, but consider: clarity is akin to consistency. "A foolish consistency...."