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FED lowers interest rate 1/2 pt
- Thread starter 2EZ2BRICH
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Doktor Bollix
New member
Greenspan should never have jacked it up so high when he was raising rates, it's too unpredictable and disruptive Someone once compared raising interest rates as a key lever:
"It is like pulling a brick across a table top with a piece of elastic : nothing happens for ages, and then the brick hits you in the eye."
One of the causes for the recession in the first place.
"It is like pulling a brick across a table top with a piece of elastic : nothing happens for ages, and then the brick hits you in the eye."
One of the causes for the recession in the first place.
Doktor Bollix said:
A Lowered interest rate = Increased spending
Increased Spending = Economic Growth
I think Greenspan did the right thing. He's probably worried
about the whole stock market debacle, which could spiral
into other areas of the economy. If that happenned, people
would save instead of spend. Economic Growth would then
stagnate.
Fonz
S
SSAlexSS
Guest
Fonz said:
True, but with war/unemployment/lack of spending/too much debt and general uncertainty lower interest rates dont change much.
Furthermore the Lower interest rate, the lower the DOLLAR on the international scene.
Lowering of interest rates is a two edged sword. Its good for something, and bad for something else as well.
Interest rates are at their lowest (not good and economy isnt doing well). Lower Interest rates always affected the economy well. It doesnt work today. Interest rates have been cut 11 times in 2001, yet economy crashed. Soon there will be no interest rate worthy of anything to invest in (for foreign investors). Less foreign investors + less of consumer spending + Lack of support for america (iraq) and we are in trouble!
Doktor Bollix
New member
I understand the rationale. My point was in hindsight raising rates was a bad call last couple of times he did it, not his fault it's just a very unwieldy instrument hence the elastic band/brick simile.Fonz said:
the nature boy
New member
I'm waiting for the housing market to crash. Foreclosures are at an all time high.
HG Pennypacker
New member
This is just a temporary fix. Cutting interest rates can't hide the fact that earnings are still down and fundamentals stink. Cutting rates helps the consumer, but it doesn't increase IT spending.
KHMER ROGUE
Banned
Three words
Keynesian policy sucks.
Of course, in theory, everything looks nicely but it doesn't always fare out well in the real world. Don't forget that Psychology and Sociology are parts of Economy too. One of its main source for a sucessful economic revival is Increased consumer confidence. I don't think we're seeing that around here.
HG Pennypacker's right.
Keynesian policy sucks.
Of course, in theory, everything looks nicely but it doesn't always fare out well in the real world. Don't forget that Psychology and Sociology are parts of Economy too. One of its main source for a sucessful economic revival is Increased consumer confidence. I don't think we're seeing that around here.
HG Pennypacker's right.
VicTusDeuS
New member
Fonz said:
He raised rates because inflation was starting to creep up. Stocks were overpriced and profit-less companies that should be worth a penny would IPO for $100.00. Consumer spending was out of control. To attempt to slow it down a little he raised the rates. But since everything was so highly inflated to begin with, it lead to it's eventual crash. The economy was growing way too fast and now is the time where things will even themselves off.
VicTusDeuS
New member
The Nature Boy said:
It will. Just wait till those low interest rates eventually rise up. People will loose money on their homes that they paid too much for in the first place.
FreakMonster
New member
VicTusDeuS said:
How will people lose money on their homes if their low interest rate they got is a 30 yr. fixed rate?
vinylgroover
New member
He had no option. Investment sentiment and confidence is down with all the global instability at the moment, a cut in rates is one way of stimulating some confidence back into the economy.
A drop in rates by the U.S leads to a cut in most other western economies as well, so you don't have to worry about losing your export competitiveness.
The construction sector is always a barometer of a healthy economy......this will stimulate construction activity in the housing, infrastructure and commercial property markets.
A drop in rates by the U.S leads to a cut in most other western economies as well, so you don't have to worry about losing your export competitiveness.
The construction sector is always a barometer of a healthy economy......this will stimulate construction activity in the housing, infrastructure and commercial property markets.
Hey Fonz and Natureboy,
i bought into that web site for foreclosures (foreclosureleads.com). the list has definitely increased. the only thing is that buying a foreclosed property seems to be more difficult now. people realize that they do not have to loose everything. that they can put their homes up for sale and get something back after paying off the mortgage.
EX: 3 homes i saw on the list were going through the foreclosed process. the owners have put them up for sale. one in particular owed $180k. he sold the home for $260k, and paid off the mortgage and bought into a condo. seems people are more aware of their options these days.
any suggestions or advice you muscle headz may have..please share. i'm new at the real estate game...thanks !
2ez....hehe
i bought into that web site for foreclosures (foreclosureleads.com). the list has definitely increased. the only thing is that buying a foreclosed property seems to be more difficult now. people realize that they do not have to loose everything. that they can put their homes up for sale and get something back after paying off the mortgage.
EX: 3 homes i saw on the list were going through the foreclosed process. the owners have put them up for sale. one in particular owed $180k. he sold the home for $260k, and paid off the mortgage and bought into a condo. seems people are more aware of their options these days.
any suggestions or advice you muscle headz may have..please share. i'm new at the real estate game...thanks !
2ez....hehe
This reduction shows how bad the economy is. It is a 40-year low right now for interest rates. Hopefully, this will turn things around soon, but many thought that a year ago. And Japan is at 0% interest and their economy sucks. Great time to buy real estate unless your community is already overpriced like most.
i understand why most would think that this is an ideal time to purchase real estate due to the interest rate being at a 40yr low . however, prices are sky high and there is a degree of economic certainty. real estate seems like a better investment option due to current market conditions, but the question is, what will happen to real estate prices when the confidence in the market is restored.
we are in a better position now than ever before to recover. moreover, downturns have and will always occur, what is certain that the market has always came back stronger each time.
Real Estate does not seem like a wise option now, unless you can find a good handyman special or a foreclosed property. wait another 1-2yrs and watch the forelcosure list increase.
ai have a cousin that owns a century 21 in california and another that owns a wiechert in NJ. both are saying people are reducing asking prices. also, they are saying that homes they sold a couple months ago, cannot get the same price the house was purchased for. the signs for a pullback in real estate is there. if it will happen or how much it will pull back is anyones guess.
hope i am making sense here...it's late for me..heheh
we are in a better position now than ever before to recover. moreover, downturns have and will always occur, what is certain that the market has always came back stronger each time.
Real Estate does not seem like a wise option now, unless you can find a good handyman special or a foreclosed property. wait another 1-2yrs and watch the forelcosure list increase.
ai have a cousin that owns a century 21 in california and another that owns a wiechert in NJ. both are saying people are reducing asking prices. also, they are saying that homes they sold a couple months ago, cannot get the same price the house was purchased for. the signs for a pullback in real estate is there. if it will happen or how much it will pull back is anyones guess.
hope i am making sense here...it's late for me..heheh
VicTusDeuS
New member
FreakMonster said:
The rates are so low now that it is a good time to take out that loan. Because it's such a good rate, everyone wants to do this. There are only so many homes and everyone knows now is the time to get a mortgage if you want a lower rate. Supply/demand drives up the prices of these homes and people are still willing to pay these inflated prices. When rates eventually go back up, the demand will drop and the price would even out some more. Plus, it seems like they give out mortgages to any piece of trash these days. Sooner or later these people will not be able to keep up with payments and the homes might get forclosed.
HG Pennypacker
New member
The interest rate cut isn't going to lower rates on 30 yr fixed rate loans. It will have more of an effect on the shorter term adjustable rate variety and car loans.
VicTusDeuS said:
your right on point bro. you are almost guaranteed a mortgage on a new home if you can put 20% or more down. with the inflated prices people are getting for their homes recently, putting down should not be a difficult thing to do.
i have a guy here, who had $80k left on his old mortage. he was able to sell his 2bdrm home for $240k. his wife wanted a bigger home , No, she wanted a new home, so they purchased a $340k home with 3bdrms. he was able to put down a little more than $100k (which is greater than 20%), on the new home, capital gains from the sale of the old home.
so now instead of paying an $800/month mortgage...he is paying $2200+ per month incl taxes. banks will give anyone a mortgage but the real question is will he be able to keep up with the increase mortgage payment.
my point is, becareful out there. i really believe he would have done a lot better adding on to his existing house, instead of buying new. new additions are much cheaper.
Lumberg
New member
I just bought a house a week ago.
I have heard that below 4% fed funds rate moves do not have any real effect, they are symbolic only.
I think Greenspan has dug himself quite a hole. Once inflation and growth start to edge up he is going to be in a world of trouble. Exactly what happened to him when the bubble burst and he was way too high.
Low mortgage rates = higher prices. It's as simple as that. Soon rates will go up and prices will go down. But when you're ready for a home, you're ready for a home.
JC
I have heard that below 4% fed funds rate moves do not have any real effect, they are symbolic only.
I think Greenspan has dug himself quite a hole. Once inflation and growth start to edge up he is going to be in a world of trouble. Exactly what happened to him when the bubble burst and he was way too high.
Low mortgage rates = higher prices. It's as simple as that. Soon rates will go up and prices will go down. But when you're ready for a home, you're ready for a home.
JC
HG Pennypacker
New member
joncrane said:
This is good advice. If you're living in it, your home should be a long term investment. When you're ready to buy a house, buy it.
HG Pennypacker
New member
Timing the housing market, exactly, is like trying to time when The Nature Boy will start liking women again. Neither will ever happen.
So how would you answer the following:
1. when you purchase a home, are you buying an asset or liability ?
2. how does one know when they are ready to buy a home ? what is used or what should one use to gauge the situation.
3. are you still building equity with monthly payments if prices were to recede as interest rates increase ? if so, please explain.
I am new to this real estate stuff. i'm all ears.
1. when you purchase a home, are you buying an asset or liability ?
2. how does one know when they are ready to buy a home ? what is used or what should one use to gauge the situation.
3. are you still building equity with monthly payments if prices were to recede as interest rates increase ? if so, please explain.
I am new to this real estate stuff. i'm all ears.
2EZ2BRICH said:
1. Liability.
2. When you have enough money.
3. Inconclusive.
If I were to buy a house, I would pay it off in 3-5 years.
Mortgages are extremely wasteful.
I'd rather live semi-frugally for 3-5 years than incurr a 20 year mortgage. Plus, the savings you'd generate would more than make up for the frugal part.
E.g.
Salary: $100,000
House: $350,000
Save up after 5 years: $350,000
Gives you a disposable income of $30,000/year NET
(500,000-350,000)/5
Buy it.
Now, you OWN an asset NOT a liability
(i.e you can RENT it.......more income)
AND,
the savings:
$350 000 Cost. Mortgage rate of 6%.
Amount paid approx after money down: $550,000
Net Loss: $200,000 (Now Savings)
See?
Mortagages are just a bad, bad choice.
Fonz
Lumberg
New member
Fonz said:
1. Liability.
2. When you have enough money.
3. Inconclusive.
If I were to buy a house, I would pay it off in 3-5 years.
Mortgages are extremely wasteful.
I'd rather live semi-frugally for 3-5 years than incurr a 20 year mortgage. Plus, the savings you'd generate would more than make up for the frugal part.
E.g.
Salary: $100,000
House: $350,000
Save up after 5 years: $350,000
Gives you a disposable income of $30,000/year NET
(500,000-350,000)/5
Buy it.
Now, you OWN an asset NOT a liability
(i.e you can RENT it.......more income)
AND,
the savings:
$350 000 Cost. Mortgage rate of 6%.
Amount paid approx after money down: $550,000
Net Loss: $200,000 (Now Savings)
See?
Mortagages are just a bad, bad choice.
Fonz
Yes but you are negleting a person's marginal utility of money.
There are people that pay their mortgage payments and then carry credit card debt. To those people their utility for money is very high; they are willing to pay 19% interest.
You on the other hand are squeamish about even paying 6% for use of money today that you will pay back tomorrow.
There is no right or wrong; it is just personal preference.
I get the impression that you come from money--the way you talk about money and of course the impressive education you brag about.
To someone that doesn't have large savings, or prefers to enjoy their life a little more while they are young, a 30 year mortgage is great.
Another consideration is that no matter how thrifty or reckless you are, lenders apply the same general formula: debt payments cannot exceed 33% of gross monthly income. I am thrifty like you; I felt that I could have afforded more house and higher payments but the lenders didn't.
Oh and finally; when you purchase a home, you are purchasing an ASSET. You are still paying money down. If you were keeping a personal balance sheet you would have the amount of the MORTGAGE, which would be less than the value of the house, in the liabilities column. Your overall net worth actually goes down becaue of transfer costs.
JC
joncrane said:
You make some valid points.
I agree Credit card debt is what kills most people.
Paying the CC bill all off every month is the best option(But not
the one most people take) No interest.
I'm not sure about the asset part in the US. In the UK some
mortgage lenders do not let you rent the house while you're paying the mortgage*This indicates it is classified as a liability(
Well....the money you still owe them). House Equity = Book Value
of the House - Exisitng mortgage payment left.
And agreed on the Savings/young part. I'm not really a big saver
either. But my mother is.
She was actually a professor of economics for a short period of time and talks about these things all the time over dinner.
We were actually debating the real estate market yesterday.
The UK market is 1000X worse than the US one right now.
Compared to Europe, the US Real Estate is quite cheap.
Fonz
Lumberg
New member
It's funny that credit cards offer 0% interest for 15-45 days if used correctly (which I do and it sounds like you do too), but then turn around and slap you if you pay even one day late. My paycheck goes into an interest-earning account. I buy everything I can on my credit card. Then I pay the bill in full electronically on exactly the due date. So I actually earn interest on the money the credit card is lending me at 0%! You can't beat that with a bat!
As far as renting a mortgaged house in the US, here's how it works:
To get the best interest rates, you have to use the home as a primary residence. If down the line you want to rent it out you have to have lived in it for a certain period of time first (like 2 years) and the rate won't go up.
If you are buying the house as an investment (not a primary residence) you pay a higher rate.
As far as renting a mortgaged house in the US, here's how it works:
To get the best interest rates, you have to use the home as a primary residence. If down the line you want to rent it out you have to have lived in it for a certain period of time first (like 2 years) and the rate won't go up.
If you are buying the house as an investment (not a primary residence) you pay a higher rate.
HG Pennypacker
New member
If this wasn't mentioned, don't forget that you need to try to project if you will be earning the same income 5 or 10 years down the line. If you are making a lot right now, but your career is such that you may be in for a drop in pay, you may want to put more down on a house so that your monthly payments will not strangle you when your income level decreases.
I was able to pay off our property early by paying additional towards the principle. It was a 15 year mortgage and I paid it off in 7years. Course prop is cheap in my area.
Credit card debt, personal debt is the real hidden problem facing the economy now. I too, pay my cc off monthly and really am more careful than most in my spending habits. Course I'm probabely older than most and have found out that material shit really does not bring joy or peace of mind. Just more stuff to take care!
Can not get my hubby to understand this. Just in the last 6 months he has bought himself a water tanker, ultra fucking fancy snomobile, and a Harley all on credit. The truck he wanted because we are members of a fire district and the truck could potentially make money on fires(forest), however the truck stands unused 9 months of the year and he still has to make the payments. Now the snomoblie -he had a brand new one last year the biggest baddest etc he just had to sell that and buy this one. Please understand we need these where will due to major snow etc. But the thing is he bought this new one which has no storage place for gas, food, personal location device for avalanches. Its just plain fucking useless as tits on a boar hog. Now the bike he could have waited to buy as that will have to sit around for the next five months and still payments to be paid.
I don't mind him having toys but he can't seem to stop spending money he does not have on things he does not need. A famous quote from him on delayed gratification "People stopped using it because it doesnt work" What the Fuck? I not a clothes horse, don't spend much on myself. Just am concerned cause he is 48 and has saved literally nada for retirement. We own three small business which arent doing all that great cause he manages them . So he has a line of credit from a bank and he uses that and credit cards.
I don't know if this is a mid life crisis type thing or what. He says that life is about having everything you want and having it now. He is my anti-christ. Unfortuntaly I fiqured this out so late. He won't even discuss it or really much of anything and I keep my mouth shut so as to not harp.
I am just covering my own butt by investing and learning as much as possible. I save what I can and pray someday he'll get it . But I believe he is typical of most people in regards to money.
No wonder the rest of the world hates us we are greedy and self involved. Just needed to vent that cause you guys seem semi intelligent about money and from what I 've seen that is rare.-Valerie
Credit card debt, personal debt is the real hidden problem facing the economy now. I too, pay my cc off monthly and really am more careful than most in my spending habits. Course I'm probabely older than most and have found out that material shit really does not bring joy or peace of mind. Just more stuff to take care!
Can not get my hubby to understand this. Just in the last 6 months he has bought himself a water tanker, ultra fucking fancy snomobile, and a Harley all on credit. The truck he wanted because we are members of a fire district and the truck could potentially make money on fires(forest), however the truck stands unused 9 months of the year and he still has to make the payments. Now the snomoblie -he had a brand new one last year the biggest baddest etc he just had to sell that and buy this one. Please understand we need these where will due to major snow etc. But the thing is he bought this new one which has no storage place for gas, food, personal location device for avalanches. Its just plain fucking useless as tits on a boar hog. Now the bike he could have waited to buy as that will have to sit around for the next five months and still payments to be paid.
I don't mind him having toys but he can't seem to stop spending money he does not have on things he does not need. A famous quote from him on delayed gratification "People stopped using it because it doesnt work" What the Fuck? I not a clothes horse, don't spend much on myself. Just am concerned cause he is 48 and has saved literally nada for retirement. We own three small business which arent doing all that great cause he manages them . So he has a line of credit from a bank and he uses that and credit cards.
I don't know if this is a mid life crisis type thing or what. He says that life is about having everything you want and having it now. He is my anti-christ. Unfortuntaly I fiqured this out so late. He won't even discuss it or really much of anything and I keep my mouth shut so as to not harp.
I am just covering my own butt by investing and learning as much as possible. I save what I can and pray someday he'll get it . But I believe he is typical of most people in regards to money.
No wonder the rest of the world hates us we are greedy and self involved. Just needed to vent that cause you guys seem semi intelligent about money and from what I 've seen that is rare.-Valerie
The decrease in interest rates has not affected the typical buyer as much as it seems. Rates to borrowers are staying a little bit higher than they really should, as lenders are trying to offset the large number fo foreclosures.
Comparisons of "40 year lows" and the like are somewhat misleading due to some of the procedural changes / de-regulations that have occurred in the banking industry.
As for the "real estate amrket" crashing, it depends where you are buying.
Fonz,
Mortgages offer tax advantages useful to most buyers.
Comparisons of "40 year lows" and the like are somewhat misleading due to some of the procedural changes / de-regulations that have occurred in the banking industry.
As for the "real estate amrket" crashing, it depends where you are buying.
Fonz,
Mortgages offer tax advantages useful to most buyers.
vinylgroover
New member
Firstly, the notion that there is a crash pending is nonsense in a low interest rate environment.
The first sign that the real estate market is going soft is that investors start leaving the market. Investors are interest rate sensitive, so while ever interest rates remain stable or are falling, investors will stay in the market and buy more.
Secondly, foreclosures are less likely to occur in a low interest rate environment, since housing affordibility is increased. Foreclosures will only occur if low interest rates are accompanied by a massive increase in unemployment. While ever, interest rates remain low, people's cpacity to repay is unaffected.
Thirdly, there is always anecdotal evidence of people losing money through property. However, this doesn't indicate a drop in values across the board is pending. rather, it's more likely a case that particular people made poor buying decisions and paid too much for their property in the first place.
Decreases in interest rates will always stimulate activity and demand in the housing market, because it is first home buyers who are most affected by a drop or increase in interest rates. Again, assuming there is not excess supply already in the market and unemployment is stable, any cut in rates will stimulate the housing market.
Whether you are ready to buy or not depends solely on your motivation for buying and your capacity to do so.
You should not be going on with less than 15-20% deposit. If you are buying for investment purposes, buy now, while interest rates are low to take advantage of the higher returns. Buy wisely, and look around.
Buy in areas which have good access to public transport, shops, schools, public facilties etc. Location is always the key.
Remember, property is a scarce commodity, land is in fixed supply therefore the underlying value of land will always increase, so if you don't buy now, you will only pay more for it in 3 or 5 or 7 years. There will always be booms and busts, but in the long term, you will always be ok with property.
Buying property is an asset not a liability. A liability is credit card debt or purchasing a motor vehicle on credit. Property is a commodity which will appreciate in value and should be treated as an asset.
The first sign that the real estate market is going soft is that investors start leaving the market. Investors are interest rate sensitive, so while ever interest rates remain stable or are falling, investors will stay in the market and buy more.
Secondly, foreclosures are less likely to occur in a low interest rate environment, since housing affordibility is increased. Foreclosures will only occur if low interest rates are accompanied by a massive increase in unemployment. While ever, interest rates remain low, people's cpacity to repay is unaffected.
Thirdly, there is always anecdotal evidence of people losing money through property. However, this doesn't indicate a drop in values across the board is pending. rather, it's more likely a case that particular people made poor buying decisions and paid too much for their property in the first place.
Decreases in interest rates will always stimulate activity and demand in the housing market, because it is first home buyers who are most affected by a drop or increase in interest rates. Again, assuming there is not excess supply already in the market and unemployment is stable, any cut in rates will stimulate the housing market.
Whether you are ready to buy or not depends solely on your motivation for buying and your capacity to do so.
You should not be going on with less than 15-20% deposit. If you are buying for investment purposes, buy now, while interest rates are low to take advantage of the higher returns. Buy wisely, and look around.
Buy in areas which have good access to public transport, shops, schools, public facilties etc. Location is always the key.
Remember, property is a scarce commodity, land is in fixed supply therefore the underlying value of land will always increase, so if you don't buy now, you will only pay more for it in 3 or 5 or 7 years. There will always be booms and busts, but in the long term, you will always be ok with property.
Buying property is an asset not a liability. A liability is credit card debt or purchasing a motor vehicle on credit. Property is a commodity which will appreciate in value and should be treated as an asset.
vinylgroover said:
OK, Mr. Professor
j/kExplain to me the UK market then...........
And a property an asset?
Again, check your accounting manual.
House Equity= Book Value House(Asset) - Total Mortgage left(Liability)
When you buy a house you get both an asset and a liability +
a long-term liability(interest).
Accounting 101 here people........ (kidding
)Fonz
Valerie: I'd talk to him now. His overspending is going to come back and bite you in the ass.
spentagn
New member
Fonz said:
And a property an asset?
Again, check your accounting manual.
House Equity= Book Value House(Asset) - Total Mortgage left(Liability)
When you buy a house you get both an asset and a liability +
a long-term liability(interest).
Accounting 101 here people........ (kidding
Fonz
Actually, your long-term liability is composed of the net present value of all future cash flows, meaning principle and interest, discounted at the IR.
And property is an asset. Do simple ledger entries to figure it out.
Lumberg
New member
valerie-
I feel for you. It must be awful to deal with your husband. I could never put up with that. If my wife did that she would be out the do'. Don't be afraid to harp--sometimes nagging is the only way to get someone to listen.
JC
PS Show us your tits! Or your ass! Better yet, your whole naked body!
I feel for you. It must be awful to deal with your husband. I could never put up with that. If my wife did that she would be out the do'. Don't be afraid to harp--sometimes nagging is the only way to get someone to listen.
JC
PS Show us your tits! Or your ass! Better yet, your whole naked body!
vinylgroover
New member
Fonz said:
OK, Mr. Professor
Explain to me the UK market then...........
And a property an asset?
Again, check your accounting manual.
House Equity= Book Value House(Asset) - Total Mortgage left(Liability)
When you buy a house you get both an asset and a liability +
a long-term liability(interest).
Accounting 101 here people........ (kidding
Fonz
Valerie: I'd talk to him now. His overspending is going to come back and bite you in the ass.
What about the UK property market?
The fundamentals of property are more or less the same wherever you go in the world, just the boom and bust cycles are different.
You can quote any accounting text book you like, but property is fundamentally an asset, if you don't understand that, you need a refresher course in investment theory
vinylgroover
New member
valerie said:
At least you have a house which is yours valerie, alot more than most people will have going into retirement. Good for you.
Have you got your own voluntary pension fund that you are/have been contributing to for retirement Valerie?
Yeah-I've got an IRA account (several,roth) . I also have my own investments and cash stash. I have been saving money on the side whenever I can. My hubby is a good guy but this money thing drives me crazy. He just won't even discuss it with me. I know for a fact what it will take to retire and it is more than he realizes.
It is good to have our house paid for and I also paid off the mortgage on one of our businesses. This I should have not done as it tied up my money, oh well its not the only money screwup I 've made.
I guess what I need is help in how to discus this with him as he really shuts down as soon as I open my mouth. Honestly I wish I had known this about him years ago . There were signs that I ignored. I really thought he was smarter than he is. I no longer work him with in in our auto repair shop cause it was too hard to make ends meet because he would give credit to anyone and of course people would not pay. It was so stressful to pay all the bills and payroll and here he would extend credit to people who had screwed us. I quit and he hired an accountant, she has helped him understand a little .
He thinks I 'm greedy or too concerned about money. The truth is I think money =time to do what you want. I see how much my parents are enjoying their retirement and I'd like the same.
Thanks for letting me vent. I had wanted to discuss this but as I read here how much the men dislike women I fiqured they'd think I'm a gold digger or a killjoy. I got my own money .-valerie
It is good to have our house paid for and I also paid off the mortgage on one of our businesses. This I should have not done as it tied up my money, oh well its not the only money screwup I 've made.
I guess what I need is help in how to discus this with him as he really shuts down as soon as I open my mouth. Honestly I wish I had known this about him years ago . There were signs that I ignored. I really thought he was smarter than he is. I no longer work him with in in our auto repair shop cause it was too hard to make ends meet because he would give credit to anyone and of course people would not pay. It was so stressful to pay all the bills and payroll and here he would extend credit to people who had screwed us. I quit and he hired an accountant, she has helped him understand a little .
He thinks I 'm greedy or too concerned about money. The truth is I think money =time to do what you want. I see how much my parents are enjoying their retirement and I'd like the same.
Thanks for letting me vent. I had wanted to discuss this but as I read here how much the men dislike women I fiqured they'd think I'm a gold digger or a killjoy. I got my own money .-valerie
vinylgroover
New member
Valerie,
Some of us here are more mature than that. There is a big difference between someone who is wise with money and concerned with retirement and someone who is money hungry, the two should never be confused.
I'm disappointed for you, it must be tough. No one wants to be working till they're 70 because they didn't save for their retirement.
Just curious, valerie, do you have children?
Some of us here are more mature than that. There is a big difference between someone who is wise with money and concerned with retirement and someone who is money hungry, the two should never be confused.
I'm disappointed for you, it must be tough. No one wants to be working till they're 70 because they didn't save for their retirement.
Just curious, valerie, do you have children?
I wish he would but he has no interest in the subject. He is not into education. Thats why I've been studying up finances and investing. I fiqure one of us should be. It may be because I am concerned about it and he seems to always take the opposing tact.
A friend told me that he will never change and that I must accept it. I think I have been in denial about this and finally I see things as they really are. I tell you we do learn so much from our family about handling money. His family is totally opposite mine. I was rasied to set aside for a rainy day,etc. -valerie
A friend told me that he will never change and that I must accept it. I think I have been in denial about this and finally I see things as they really are. I tell you we do learn so much from our family about handling money. His family is totally opposite mine. I was rasied to set aside for a rainy day,etc. -valerie
o.k. now i am really lost here. like Fonz, i always considered a house to be a liability.
1. who owns the house when the purchase is made ?
2. tax deductions are recieved with interest paid on mortgages, but when property tax, lights, cable, gas, water and the regular maintenance, are all paid with after tax dollars. where's the savings ?
so let's think about it a minute, why not start an investment portfolio over purchasing a home. seems that the investment portfolio is more likely to generate money for you quicker, than a new home will. instead of paying a $2000 mortgage every month, along with taxes and all the other utilites ...why not throw that money into an account. at least the account will be yours from day 1 and not the banks...Hmmm ?
hope my question is clear...it's late...hehe
2ez
1. who owns the house when the purchase is made ?
2. tax deductions are recieved with interest paid on mortgages, but when property tax, lights, cable, gas, water and the regular maintenance, are all paid with after tax dollars. where's the savings ?
so let's think about it a minute, why not start an investment portfolio over purchasing a home. seems that the investment portfolio is more likely to generate money for you quicker, than a new home will. instead of paying a $2000 mortgage every month, along with taxes and all the other utilites ...why not throw that money into an account. at least the account will be yours from day 1 and not the banks...Hmmm ?
hope my question is clear...it's late...hehe
2ez
vinylgroover
New member
It depends on your own priorities and investment criteria etc.
Buying shares is a great investment idea in itself, but you can't live in your share portfolio.
Investing in real estate is a also a form of forced savings. It forces you to save your income because you know you have a mortgage to pay off. For those who are poorly disciplined at saviong, it's a good way to force you to save.
They are two totally different forms of investment, although the overriding principles are the same; if you take a long term horizon with both, you will come out a winner.
There is no reason why you can't invest in a share portfolio down the track, once you have purchased your home. You can use the equity in your home to start a share investment portfolio, borrow against it etc.
If you already have a decent deposit saved for a house or property, it is advisable to enter into the property market first, as it will take you a long time before you can save that amount again, assuming you choose to invest in shares first.
The thing with property is you have to choose carefully, be aware of what the market is doing and view it as a long term play.
I am in development myself, which is why you will hear me sing the praises of property as an investment. I see it day in and day out, it really is a great investment......for many reasons.
Buying shares is a great investment idea in itself, but you can't live in your share portfolio.
Investing in real estate is a also a form of forced savings. It forces you to save your income because you know you have a mortgage to pay off. For those who are poorly disciplined at saviong, it's a good way to force you to save.
They are two totally different forms of investment, although the overriding principles are the same; if you take a long term horizon with both, you will come out a winner.
There is no reason why you can't invest in a share portfolio down the track, once you have purchased your home. You can use the equity in your home to start a share investment portfolio, borrow against it etc.
If you already have a decent deposit saved for a house or property, it is advisable to enter into the property market first, as it will take you a long time before you can save that amount again, assuming you choose to invest in shares first.
The thing with property is you have to choose carefully, be aware of what the market is doing and view it as a long term play.
I am in development myself, which is why you will hear me sing the praises of property as an investment. I see it day in and day out, it really is a great investment......for many reasons.
spentagn
New member
2EZ2BRICH said:
The person owns the house. The lending institution has a unilateral contract with the home owner that relinquishes ownership of the asset in the case of default.
Because you still have to pay for somewhere to live. A home will theoretically appreciate in value. Try getting a return on that apartment you've leased for the past 20 years.
Also, the introduction of home equity loans adds liquidity to a person's finances, and also adds money to the economy.
The value of loans is evident in the securities market. People buy on margin because, on average, you're gonna get a hell of a lot more return than you'll be paying in interest.
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