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That's why I took a sledgehammer to our budget and bought a home that is much more (in every way) than we'd anticipated. Appreciation isn't a certainty but there is that "you only live once" factor.
We have a bridge loan until our current house is remodeled and put on the market but so what?
Slashing costs is a great idea .but remember, slashing costs only seem like more income until it bottoms and costs rise over the years . You need to not only do cost cutting but invest effectively too so income increases as well .
One reason transplants from high cost of living areas who owned paid off homes seem to do better than locals in cheapsville is the high cost of homes is a bigger forced savings .
A home that saw 3% appreciation that is 250k is a whole lot less then a 700k home that saw the same appreciation . Now when that 700k home is sold and they relocate to cheapsville themselves they have far more than locals . Plus the higher wages in high cost of living areas can provide a lot more in ss.
If you have the ability and discipline to invest and rent you can do the same thing but most Americans don’t so that home becomes their greatest asset
I've done well on two of my primary home transactions in NNJ, as well as benefiting from late DH's capital gain when he sold his house in NNJ after we married- but now I'm out here in Cheapsville (KC MO area) and I haven't seen that kind of appreciation. We downsized 3 years ago and barely got out what we put into the house (bought 2003, sold 2015). I don't think my current home has appreciated much. DS and DDIL just sold a house in Des Moines for pretty much what DS paid in 2010. (It was built in 1928 and had some lovely original woodwork but the HGTV crowd would have turned their noses up at it.)
Fortunately, "make a killing on the house" is not part of my retirement plan, but I'd be in trouble if it were.
That's why I took a sledgehammer to our budget and bought a home that is much more (in every way) than we'd anticipated. Appreciation isn't a certainty but there is that "you only live once" factor.
We have a bridge loan until our current house is remodeled and put on the market but so what?
I don't see homes appreciating as much as in the past but who can predict the future. Probably depends on the area. One would think at some point, homes would become too expensive for the majority to afford unless they go to 40 year mortgages. Yikes!
In retirement appreciation may mean little if you are living in the house .Cash flow is king .
That is why we did not buy as of yet . I can save 6k a year buying vs renting . Until you figure the money spent to buy wiill lose 15k a year at a min in income .
The fact the co-op may one day appreciate is irrelevant to us
You have a way of verbally rolling your eyes when responding to posts about people who made good decisions and have lives with positive outcomes.
I applaud people that make good decisions and lives with positive outcomes but I detest arrogance and people with pat themselves on the backitis. They must have outrageous chiropractor bills getting realigned.
I applaud people that make good decisions and lives with positive outcomes but I detest arrogance and people with pat themselves on the backitis. They must have outrageous chiropractor bills getting realigned.
Raising a good kid who has uncommon smarts is something to be proud of.
Cash flow is king and that's why many will rely on reverse mortgages at some point, so it won't mean little at all. You can't reverse rent.
Reverse mortgages are really just preselling the house . The problem for many who count on reverse mortgages is they postpone the inevitable and erase any hope of escaping it .
People who tend to be under funded and need a reverse mortgage generally find it is a temporary stop gap because rising costs can eventually just eat them up anyway . A reverse mortgage is a loan .
Now they end up with no or little equity left to relocate with .
Renting and investing elsewhere can work out just fine . The fact I can’t take a reverse mortgage is irrelevant because I would likely never take or need one since my investments provide even more .
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