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It's a matter of priorities. Do you want to live in a desirable/trendy/fun location on the coast? Or do you want to be a home owner? Some people can do both... but far more people can only do one or the other.
Out here in Fly-over country, we bought a pretty nice house that cost just slightly more than our annual income. Financed at 3.00% fixed. 15 year mortgage, with payments well under 25% of our income.
Outside of fly-over country, that's just not possible for most people.
Lots of people can’t live in So Cal. But they do. Because they really don’t have the means to go elsewhere
True for some. An excuse for others.
The key, like so many things, is to size things up when you're young. So many people don't. Then they trap themselves with expensive long term commitments (car loans, too much in student loans, big mortgages, kids, pets, etc.) that are not easy to get out of.
It's a matter of priorities. Do you want to live in a desirable/trendy/fun location on the coast? Or do you want to be a home owner? Some people can do both... but far more people can only do one or the other.
Correct. But a lot of people don't want to hear this hard truth, and so their lives get....even harder because they put their heads in the sand.
I have no idea, that's why I asked. I barely know who he is, I've heard his name on the internet and TV but that's about it.
He has a whole collection of books on how to get out of debt, how to spend invest etc. And hey the dude found a niche market on people who are out of control financially and he’s doing his personal best way to get them t9 learn to be debt free. His tactic may not be for everyone but nothing really is. Some people simply have no idea where to start because it’s a huge pile of debt. I call it quicksand syndrome. And he gives them a way out.
Quote:
Originally Posted by mysticaltyger
True for some. An excuse for others.
The key, like so many things, is to size things up when you're young. So many people don't. Then they trap themselves with expensive long term commitments (car loans, too much in student loans, big mortgages, kids, pets, etc.) that are not easy to get out of.
You’re expecting 22 year olds to look 10/20/30/40 years into the future? But you’re absolutely right. I have friends who rent and have pets. I never understood why you would tie yourself to such responsibility. But hey it’s their life lesson.
The few people I know who used DR debt tactic did well. A few failed but they didn’t follow it to the letter. The ones who got out of debt did get out of debt and it was not a easy task. But after that there was nothing else. Not one made any headway financially.
One friend could of bought with 10/15% down but lost out the hundreds of thousands in appreciation because she’s dead set on buying cash as per DR. She could of bought a house here waited for the appreciation and sold. She could of walked with a few hundred thousand in her pocket and bought cash out of state.
Last i talked to her she’s still renting. But dead set on buying cash. Ok do it the hard way I guess.
It takes a lot of work/effort to change your habits and the financial aspect is no different. To change you have to recognize there is an issue, accept your role in where you are, take responsibility, educate yourself and apply it. It’s not easy and the fact you haven’t seen too many do well using the DR method I don’t think is any reflection on the system or teaching but more indicative of the general issue facing those trying to make the change.
I also don’t think Dave advocates buying your house with cash so your female friend was simply offbase
I also don’t think Dave advocates buying your house with cash so your female friend was simply offbase
It is just more cash than the vast majority can raise, or will raise when the lending industry is willing to let you go with a much smaller down payment than Ramsey suggest is financially sound for the person taking on the debt obligation..
The few people I know who used DR debt tactic did well. A few failed but they didn’t follow it to the letter. The ones who got out of debt did get out of debt and it was not a easy task. But after that there was nothing else. Not one made any headway financially.
One friend could of bought with 10/15% down but lost out the hundreds of thousands in appreciation because she’s dead set on buying cash as per DR. She could of bought a house here waited for the appreciation and sold. She could of walked with a few hundred thousand in her pocket and bought cash out of state.
Last i talked to her she’s still renting. But dead set on buying cash. Ok do it the hard way I guess.
Yeah. Dave Ramsey minions can be very stubborn. They made him rich while they continue to struggle manage their finances. Hardly any of his advice has any practicality to the real world.
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Originally Posted by LifeIsGood01
He sells products?
Yes, what else would you call his books, worksheets, seminars, etc that made him a millionaire?
It takes a lot of work/effort to change your habits and the financial aspect is no different. To change you have to recognize there is an issue, accept your role in where you are, take responsibility, educate yourself and apply it. It’s not easy and the fact you haven’t seen too many do well using the DR method I don’t think is any reflection on the system or teaching but more indicative of the general issue facing those trying to make the change.
I also don’t think Dave advocates buying your house with cash so your female friend was simply offbase
I’ve heard both. He’s mostly a cash buy advocate but he will say a 15 year mortgage is ok with enough down to make your payment x % of your total income. And I get the reasoning behind it.
The problem is that there is more upswing in a market than downswing. And when there is a downswing you better have the money, job and income to qualify for that loan. On a upswing most simply cannot match that.
Very few people buy houses cash.
There are a few other sub-$100K properties in FWB that tend to be in pretty bad areas or condo complexes with poor reputations and you're pretty much buying a problem there.
Decent one bedroom in a better area and well-run complex, which is the only sub-$100K home in Niceville right now.
I only checked out the first one but really, a house that looks to be a couple blocks from the ocean in a very hot tourist area, yeah big surprise that's super expensive. You can't buy a place to live for 90k near the ocean, that's not really a big surprise. If your only making enough that you can afford a $90,000 you can't afford to live that close to the water. Living near the ocean and even in some cities isn't a right, either you make enough to afford it or you don't.
I had looked into moving to Florida from Chicago and while it's not the cheapest place in the country there's some very affordable homes, and property taxes are a fraction of what I pay. If you were to go a couple towns more inland or even another city entirely I'm sure you could find a decent livable house for under 100k.
This kind of perfectly illustrates the point that your dream home or even the exact location you'd like to live isn't always the smartest money move to make. If all you can afford is a 90k house you move somewhere more affordable, save money, work hard and improve your income, you delay gratification and down the road you can have that house less than a mile from clearwater beach or destin or wherever that was.
I like how people are quoting Chicago, the murder capital of th US. It's expediting rapid emigration as people flee to Indiana. So yeah the homes might be cheap but in ten years they'll practically be free like in Detroit!
While Illinois is a nightmare in terms of politics it's hardly anywhere near Detroit or Cincinatti or other descimated cities. While Chicago is way cheaper than New York, California, etc, its still one of the more expensive areas of the country outside of major cities. I think your being a little dramatic here. That said since you brought up Indiana let's take Munster Indiana, votes one of the best places to live. It's actually closer to downtown Chicago than many "chicago suburbs" it's safe, a great city, near the lake, train line to Chicago for people who want to commute, and all without the Chicago taxes and politics. Here's a 2 bedroom condo for 90k. Sure not a single family home but again not everyone earns enough to live in their dream home
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