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Old 05-13-2011, 10:47 AM
 
Location: Conejo Valley, CA
12,460 posts, read 20,092,270 times
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Quote:
Originally Posted by MrRational View Post
Yes it does. That is a philosophical discussion.
No, its entirely a financial discussion, one which you are ignoring. Again, if real estate is not a good value why would I want to shift my assets into real estate because I reach some particular age?
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Old 05-13-2011, 11:01 AM
 
Location: The Triad
34,092 posts, read 83,000,140 times
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Quote:
Originally Posted by user_id View Post
No, its entirely a financial discussion, one which you are ignoring. Again, if real estate is not a good value why would I want to shift my assets into real estate because I reach some particular age?
why would you want THE OPTION to?
well, maybe you wouldn't.

my words :
You'll *want* to be financially capable of making a shift of your assets from an investment portfolio into real estate.

whether to is a whole other set of questions
sort of like oh, maybe a philosophical discussion?
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Old 05-13-2011, 11:13 AM
 
Location: Conejo Valley, CA
12,460 posts, read 20,092,270 times
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Quote:
Originally Posted by MrRational View Post
You'll *want* to be financially capable of making a shift of your assets from an investment portfolio into real estate.
Yep, you words, the ones among others I'm responding to. I'm glad we cleared that up. Now, what exactly does it mean to be capable of making a shift? Its not sufficient to merely have the appropriate net-worth, instead, you'll have to have enough liquid net-worth. Hence being capable comes with a cost, namely you'll have to forgo other investment opportunities. So then, one has to address and think about whether or not real estate is going to provide value, not just today but in the future. If you determine this in the negative, then why would I care about remaining capable of making a shift?

And no, still not a philosophic discussion, just a financial one.
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Old 05-13-2011, 11:44 AM
 
Location: The Triad
34,092 posts, read 83,000,140 times
Reputation: 43666
gotcha. (again)

you keep trying to force the discussion into the spaces between the points.
you seem more comfortable there. I'm not interested.
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Old 05-13-2011, 12:12 PM
 
Location: Boca Raton, FL
6,884 posts, read 11,247,022 times
Reputation: 10811
Smile Just my opinion

Quote:
Originally Posted by ragnarkar View Post
For me, housing isn't a very high priority in my life and I don't wish to invest in my own home despite popular belief (although I have other investments.) It seems when you disregard housing, the cost of living between the high and low cost areas aren't radically different.

Case in point, one of my best friends who is currently unemployed lives in San Francisco and pays maybe about $500/600 in rent to rent a room to share a housing unit in a relatively good neighborhood. He doesn't own a car and just buys the monthly bus pass for about $50-60 or whatever to get unlimited transportation around the city. Figure about $70 for health insurance and $200 for food (mostly cooking rather than eating out) and he's spending less than $1000/mo of his savings to live in SF while looking for a job in the area.

He might spend less than that to live in, say, Omaha but since his career is in IT and most of his connections are in California, it makes much more sense to be located in San Francisco than Omaha while looking for the job.

I'm curious if any other people here manage their frugality despite living in a high cost of living area (i.e. California, East Coast, Chicago, Miami, DC, Raleigh, etc.)?
I live in a "high cost" area but I grew up in good areas and the important things to me are housing, education and religion.
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Old 05-13-2011, 12:51 PM
 
Location: Conejo Valley, CA
12,460 posts, read 20,092,270 times
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Quote:
Originally Posted by MrRational View Post
you keep trying to force the discussion into the spaces between the points.
You're right, because that is where people like to hide their gibberish.

You didn't address the issue, that's okay, if you make things vague enough you'll never have to actually address anything.
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Old 05-13-2011, 02:14 PM
 
Location: NJ
31,771 posts, read 40,711,393 times
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Quote:
Originally Posted by user_id View Post
Except for the fact that there are numerous government programs that allow people to get mortgages for 0~3.5% down.

So you are saying that in areas of the country where its cheaper to rent, the person who saves, etc usually buys a house despite it costing more? Yeah...that sure makes sense. I guess that explains the penny-pinching, gotta make up for the extra housing costs.
i dont understand how someone that is so dumb can argue so much.

look at renters as an aggregate group and look at homeowners and see who is more frugal and financially comfortable. renters are much more likely to be living paycheck to paycheck and **** away any extra money the come across.
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Old 05-13-2011, 02:34 PM
 
Location: Conejo Valley, CA
12,460 posts, read 20,092,270 times
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Quote:
Originally Posted by CaptainNJ View Post
look at renters as an aggregate group and look at homeowners and see who is more frugal and financially comfortable. renters are much more likely to be living paycheck to paycheck and **** away any extra money the come across.
You claimed that " renters are renting because they cant save up the money for a downpayment", which is not accurate as there are numerous programs that enable people to buy homes with no to little down-payments.

In terms of "frugality" and financial well being, there is going to be a huge difference between the high cost-of-living areas and the low-cost of living areas. In the latter renting is often correlated with being low-income, in the former case the correlation is much weaker. But, I'm not sure why these correlations are even important, the causation here works in the other direction. That is, one is first low-income, then a renter. Not low income, spendthrift, etc because they are a renter.

If renting is cheaper, in what sense are the people that own more frugal? After all, housing is most peoples largest expenditure.....

Anyhow, frugality is really just being penny-wise and pound-foolish. Keep cutting those coupons....
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Old 05-13-2011, 02:41 PM
 
Location: NJ
31,771 posts, read 40,711,393 times
Reputation: 24590
Quote:
Originally Posted by user_id View Post
You claimed that " renters are renting because they cant save up the money for a downpayment", which is not accurate as there are numerous programs that enable people to buy homes with no to little down-payments.

In terms of "frugality" and financial well being, there is going to be a huge difference between the high cost-of-living areas and the low-cost of living areas. In the latter renting is often correlated with being low-income, in the former case the correlation is much weaker. But, I'm not sure why these correlations are even important, the causation here works in the other direction. That is, one is first low-income, then a renter. Not low income, spendthrift, etc because they are a renter.

If renting is cheaper, in what sense are the people that own more frugal? After all, housing is most peoples largest expenditure.....

Anyhow, frugality is really just being penny-wise and pound-foolish. Keep cutting those coupons....
my claim holds true for most renters. they can not afford the down payment, they dont have a good enough work history or credit to get a mortgage. something is missing financially preventing them from buying.

its cute that you make your little anti-frugality statement at the end of your post as if anyone would ever take any advice from you.
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Old 05-13-2011, 02:51 PM
 
Location: Conejo Valley, CA
12,460 posts, read 20,092,270 times
Reputation: 4365
Quote:
Originally Posted by CaptainNJ View Post
my claim holds true for most renters. they can not afford the down payment, they dont have a good enough work history or credit to get a mortgage. something is missing financially preventing them from buying.
I really have no idea whether its true for "most renters", but what useful information does one derive from this in terms of finances? None. Whether or not most renters can in principle buy or not has no barring on whether or not its cheaper to rent vs own in some area. I'll ask again, if renting is cheaper as is the case in many areas of the country, how is it frugal to own?

Quote:
Originally Posted by CaptainNJ View Post
its cute that you make your little anti-frugality statement at the end of your post as if anyone would ever take any advice from you.
I'm not really concerned whether a bunch of coupon-clippers take my advice, I'm only concerned with the general issues. Namely, focusing on pennies while you ignore the pounds. Buying into an over-valued real estate market is definitely ignoring the pounds....
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