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First house for a young man
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Gary350z:
My dad is quite the expert on this. He has many houses. Here is one thing he has said.

Your facts: house cost = $260k, real estate value gains about 10% each year.
You say you want to pay cash for the house.

Option 1: pay cash in full for house.
Return on investment = (10% x $260k)/$260k = 10% per year.

Option 2: get a loan, and put down a 20% ($52k) down payment.
Return on investment = (10% x $260k)/$52k = 50% per year.

This is called leverage. My dad says buy the house with the smallest down payment you can. These are rough numbers, not including many things, but you can see the difference. It all depends on what you want. I am definitely not an expert on this, I am just passing along a little information.  Good luck.

P.S. I have read many of your post. :D
coppice:

--- Quote from: EEVblog on July 03, 2017, 08:45:14 am ---Isn't the Chinese government limiting export of Yuan to $50k per person or some such?
I heard they are trying to stem the rush of currency out of the country.

--- End quote ---
They try. They don't really succeed. There are so many ways around such a restriction.
EEVblog:

--- Quote from: Gary350z on July 03, 2017, 11:00:55 am ---My dad is quite the expert on this. He has many houses. Here is one thing he has said.
Your facts: house cost = $260k, real estate value gains about 10% each year.

--- End quote ---

Unless it doesn't.
The last two Sydney housing booms had a 5+ year flat period afterwards.
We've just had the biggest boom in history, and many indications are that the boom is over.

Also, can and do lose money on homes. If you overpay and then are forced to sell you can loose big time.
Some suburbs in Sydney drop 30-50% after a boom, usually the exclusive ones with designer home were people overpayed for huge expensive houses on small blocks of land.

We have an entire generation of new housing investors who have not seen realestate prices stagnate or go down, or interest rates go up, they will be in for a big shock.
kasone:
I have lived in a paid for house for about 30 years and would not want to have a monthly payment. I was even laid off from my job for 30 days in a re-organization and not having to worry about house payments relieved a lot of stress.

If you spend all of your available on a house, you will not have any money to repair the inevitable problems that will come up. 

If you want financial advice, check out daveramsey.com. He has some great advice on money and has a proven concept that has helped a lot of people.
coppice:

--- Quote from: kasone on July 03, 2017, 12:25:28 pm ---I have lived in a paid for house for about 30 years and would not want to have a monthly payment. I was even laid off from my job for 30 days in a re-organization and not having to worry about house payments relieved a lot of stress.

If you spend all of your available on a house, you will not have any money to repair the inevitable problems that will come up. 

If you want financial advice, check out daveramsey.com. He has some great advice on money and has a proven concept that has helped a lot of people.

--- End quote ---
A relaxed and stable life has a lot more to do with low outgoings, than a high income. Low outgoings are much easier to replace.
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