I'm a financial planner, and I can tell you buying a home in your 20s or 30s may not be the great investment you think (Newark: apartments, rentals)
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I dont think there’s a one size fits all right answer. Everyone’s situation is different. i do believe that if you do it correctly that buying a house for most people is a smart financial decision.
I bought and developed two multifamily houses in Newark (Ironbound). My equity in just 5 years between two properties is about $700k and rents pay my taxes, mortgage and all expenses...plus I live for FREE. Talk all you want about Newark. Soon enough Newark will pay for my single family house. Keep hating on Newark.
You do realize people do what you have done and do it in other places .
Buy a house you can afford, not one that someone says you can afford.
Stop trying to live like your parents who bought their house along time ago. Your parents probably didn't live the live style they have now when they purchased their first home.
Take out a 30 year mortgage but pay it off in 15 years. It's not that hard.
Reap the benefits!
Buy a house you can afford? REALLY? Have you seen how much housing prices have increased vs. growth in taxes and wages the last 20 years!? Its just NOT that easy! Oh and student loans that I assume 25 years ago were lacking as were the risk of layoffs which have become more prevalent now.
Sounds good to some extent but if you can sell it for a $200K profit, that implies a lot of other homes are commanding a similar price. So that means to really keep that cash profit in your pocket, you have to trade down to a smaller, less pricey home or maybe move to a part of the country you don't really want to live.
2. I donot pay for nothing. Banks pay for it. I take the profit and buy another $400k using bank money and sell for $600k. Tons of buyers are begging for bidding war.
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Originally Posted by walker1962
Sounds good to some extent but if you can sell it for a $200K profit, that implies a lot of other homes are commanding a similar price. So that means to really keep that cash profit in your pocket, you have to trade down to a smaller, less pricey home or maybe move to a part of the country you don't really want to live.
Of course the article has some truth to it. The average American makes a lot of financial decisions that aren't very smart--new cars every few years, vacations more than they can afford, general waste and over consumption just to consume. The average American has 0 retirement savings and is $300 away from complete financial disaster. If someone is buying in a market where prices are relatively flat, and they aren't putting much down on the loan--it's risky. Pure and simple. Financially smart people will run numbers and take a risk if it's a calculated risk. But the average American isn't all that smart when it comes to financial matters.
For us--in Hoboken, since that has come up a lot in this random thread---we are able to live simply and frugally here with 2 kids. Buying here when we did has been a great financial decision, with a much better outcome than renting would have gotten us. Our mortgage/tax/HOA/Insurance payment each month is far below current rental prices or even what we'd be paying in any suburb we'd care to live in. But half of that is luck. We bought at a good time. We refinanced at the absolute lowest interest rate. We haven't had to sell (yet) during an economic downtown. We've had steady raises and haven't inflated our lifestyle. We have no other debt, so we've been able to make double and triple payments for some time and we'll have it all paid off before we reach the 10 year mark. Neither of us has been laid off or suffered a major illness. It's always a combination of financial acuity and good luck.
Real estate is never a sure thing. Don't put all your eggs in one basket. Make sure you are paying the least amount of interest you can manage on your home loan, and don't neglect your retirement accounts and your non-retirement investments.
What do you do when it floods in hoboken?
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Originally Posted by jdacunha
So when people talk crap about Newark it is generally acceptable? When someone shares positive first hand experience about a community is an advertisement?
The Ironbound has pretty much the same crime ratios per capita as Harrison, Belleville or any neighboring town. Less than Jersey City, by far.
Ironbound and NjPAC area is very nice. Tiexera bakery egg custard ftw. Newark should use that as the frontlines for gentrification. Harrison is turning into hoboken. Lot of money going into area. Kearney housing prices already going up. If they fix up newark, people don't have to go into nyc. They need to put a direction rail connection to AC along hte coast line that bypasses philly. connect all of nj. make it the center of the world. we need more infrastructure funding.
[quote=Dangerous-Boy;54822327]What do you do when it floods in hoboken?
My particular building hasn't ever flooded. So it hasn't been an issue.
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So it hasn't been an issue.
