mr.yuck Posted March 23 Share Posted March 23 On 3/15/2024 at 9:01 AM, misteraven said: Going to get wild and I’ll predict will have people with “jobs” reminiscing about having a roof over their head, let alone one they own. My two cents. I know this is kinda getting away from home ownership, but it really feels like your saying holding massive debt is going to be beneficial in the coming years. After all, what's paying off a couple million in debt once hyper inflation jumps off? Quote Link to comment Share on other sites More sharing options...
fat ralphy Posted March 25 Share Posted March 25 Came across this ricing map - wild. Definitely relevant to this discussion. 2 1 Quote Link to comment Share on other sites More sharing options...
mr.yuck Posted March 25 Share Posted March 25 Oh shit. And even that map is 2.5 years old. Quote Link to comment Share on other sites More sharing options...
Mercer Posted March 25 Share Posted March 25 It's weird, if I could convince my wife to move I'd have my house paid off and be able to pocket enough for another luxury wip. Unfortunately I'd earn way less though so I gotta wait until retirement. 2 Quote Link to comment Share on other sites More sharing options...
abrasivesaint Posted March 25 Share Posted March 25 I bought a home last year in New England, the price for what I have (2br, 1ba, 924sq/ft) was absurd, but that’s the market in this region, or everywhere depending on the perspective. This wasn’t a purchase of a forever home by any stretch. It was merely a temporary hold-over because to rent a 2br apartment would have been roughly the same, so i decided to try the investment route. I live in an HOA, which i absolutely despise. However, of all the HOAs out there, this one seems to be one of the best. They largely don’t give a shit about things that other HOAs normally put the boot on. For instance, I have a decent sized fenced in yard, which is great for the dog. The majority of HOAs that i encountered while shopping around didn’t allow fencing or walls of any sort. The lesser of evils, i suppose. The plan is to move the fuck out of this region and somewhere cheaper very soon. In other states, i could have bought a 4br, 2.5ba thats 3x the size and actually own the land for the same costs.. Goofy ass world. 4 1 Quote Link to comment Share on other sites More sharing options...
abrasivesaint Posted March 25 Share Posted March 25 I’ve mentioned this in here before a long ass time ago, but when i moved to Denver temporarily, in 2017-2018, i looked at buying a condo for $178k, didn’t pull trigger. As of today, condos in that part of town float between $500k-$700k. woof. 2 1 Quote Link to comment Share on other sites More sharing options...
Joker Posted March 25 Share Posted March 25 Same here @Mercer. I could sell my home and move to middle America and buy a house outright, and afford to fix it up and make it mine, and have no mortgage payment. However my wife is a coastal gal so she needs to be within driving distance of the beach so I've had to shift my thinking. Which brings me to my thoughts on this: If you want to own a home you have to make that goal a priority. If you have debts, pay them off and start saving every spare dollar you have. You don't want ANY DEBT going into home ownership. Most lenders will let you know that up front and tell you that you need to pay off your debts before they'll lend you money. If that's not a possibility but you have a job and have been contributing to a 401k look into borrowing from your balance. Some 401k balances offer great home buying downpayment loans that is to your advantage. This way you're paying yourself back and not a bank, kinda. There's several first-time buyer programs out there as well that can help you fast track the process from saving to purchasing, a quick Google search for first time home buyer programs will give you a wealth of information and a good place to start. Hell, even taking the time to chat with a mortgage agent or a financial advisor (yep, adult shit) can help you reach your goals. I definitely understand that things are very different from when we first purchased our first home (23 years ago). The cost of everything has gone up and wages haven't kept up with that. So if your wages are the excuse for not getting you to a place where you can afford a home, but owning a home is a goal, then you have to create a plan to get there. It might take five years to get there (that's how long it took us to save for a downpayment) but if that's your goal then you have to focus on that. If it means living in a three bedroom apartment with others so that you have low rent, driving a cheap car that is paid off, and eating cheap food all to save as much money as you can, then that is the path. And if you're not interested in buying a home, or even care to, please... I'm begging you, start saving NOW for your retirement. If you work somewhere that offers a 401k start contributing to it now. Like, now. At least contribute the amount that they match (most companies are 4%). It comes right out of your paycheck and you'll barely notice the difference. Trust me. And if your company doesn't offer a 401k look into opening an IRA with a brokerage company like Charles Schwab, Vanguard, or Fidelity. Doesn't matter which one, just start now while you're young. And once you're fully invested in your 401k don't give in to the thoughts of cashing it out. If you leave the company to go work somewhere else find out if they offer a 401k program and then transfer your balance to the new one. And if they don't offer a 401k then transfer your balance to an IRA with a broker like one of the ones listed above. I'm absolutely serious with this. If you're expecting to survive on social security when you retire you're dreaming. Start saving when you're young. And fucking floss your teeth, you animals. 2 4 2 Quote Link to comment Share on other sites More sharing options...
ndv Posted March 25 Share Posted March 25 (edited) On 3/22/2024 at 8:18 PM, mr.yuck said: I know this is kinda getting away from home ownership, but it really feels like your saying holding massive debt is going to be beneficial in the coming years. After all, what's paying off a couple million in debt once hyper inflation jumps off? This sounds like the part we're lenders will start taking out life insurance policies. If something wre to happen, your life insurance will be cashed out and pay off debts. Lenders gonna get paid no matter how the dice rolls. Rinse and repeate. Edit: imagine employeers taking out life insurance policies on employees and if anything happens they cask out on a mil. Edited March 25 by ndv Quote Link to comment Share on other sites More sharing options...
ndv Posted March 25 Share Posted March 25 ^^ perhaps if the insurance thing is already be in practice Quote Link to comment Share on other sites More sharing options...
LUGR Posted March 25 Share Posted March 25 2 hours ago, Joker said: Same here @Mercer. I could sell my home and move to middle America and buy a house outright, and afford to fix it up and make it mine, and have no mortgage payment. However my wife is a coastal gal so she needs to be within driving distance of the beach so I've had to shift my thinking. Which brings me to my thoughts on this: If you want to own a home you have to make that goal a priority. If you have debts, pay them off and start saving every spare dollar you have. You don't want ANY DEBT going into home ownership. Most lenders will let you know that up front and tell you that you need to pay off your debts before they'll lend you money. If that's not a possibility but you have a job and have been contributing to a 401k look into borrowing from your balance. Some 401k balances offer great home buying downpayment loans that is to your advantage. This way you're paying yourself back and not a bank, kinda. There's several first-time buyer programs out there as well that can help you fast track the process from saving to purchasing, a quick Google search for first time home buyer programs will give you a wealth of information and a good place to start. Hell, even taking the time to chat with a mortgage agent or a financial advisor (yep, adult shit) can help you reach your goals. I definitely understand that things are very different from when we first purchased our first home (23 years ago). The cost of everything has gone up and wages haven't kept up with that. So if your wages are the excuse for not getting you to a place where you can afford a home, but owning a home is a goal, then you have to create a plan to get there. It might take five years to get there (that's how long it took us to save for a downpayment) but if that's your goal then you have to focus on that. If it means living in a three bedroom apartment with others so that you have low rent, driving a cheap car that is paid off, and eating cheap food all to save as much money as you can, then that is the path. And if you're not interested in buying a home, or even care to, please... I'm begging you, start saving NOW for your retirement. If you work somewhere that offers a 401k start contributing to it now. Like, now. At least contribute the amount that they match (most companies are 4%). It comes right out of your paycheck and you'll barely notice the difference. Trust me. And if your company doesn't offer a 401k look into opening an IRA with a brokerage company like Charles Schwab, Vanguard, or Fidelity. Doesn't matter which one, just start now while you're young. And once you're fully invested in your 401k don't give in to the thoughts of cashing it out. If you leave the company to go work somewhere else find out if they offer a 401k program and then transfer your balance to the new one. And if they don't offer a 401k then transfer your balance to an IRA with a broker like one of the ones listed above. I'm absolutely serious with this. If you're expecting to survive on social security when you retire you're dreaming. Start saving when you're young. And fucking floss your teeth, you animals. Co-sign flossing your teeth. Un-flossed teeth is one of the nastiest smells. If you don’t believe me, go floss your back teeth and smell the floss 🤮. Also, all that 401K IRA talk is solid advice too. 1 1 Quote Link to comment Share on other sites More sharing options...
abrasivesaint Posted March 25 Share Posted March 25 18 minutes ago, Joker said: And fucking floss your teeth, you animals. oh, NOW you tell me. 1 2 Quote Link to comment Share on other sites More sharing options...
metronome Posted March 25 Share Posted March 25 Co sign @Joker on the retirement saving. The easiest way to save is to set up a recurring auto deposit, you save monthly/biweekly/weekly and you never even notice you’re doing it. If you are self employed this is obviously a little more tricky. 1 1 Quote Link to comment Share on other sites More sharing options...
Joker Posted March 25 Share Posted March 25 (edited) The 401k IRA thing is so important if you're not savvy with stocks and trading and Bitcoin or whatever is the thing of the moment... or are lucky enough to be born into family money. I'm not smart at all when it comes to this kind of stuff so I rely on folks who are to build my wealth for me. It's the best option that has been working for me. To put it in perspective, with my current employer I was able to immediately start contributing to a 401k on my first day of employment. After six years of contributing pre-tax dollars every paycheck my balance is over $100k... for doing nothing but showing up to work. I contribute 12% of each paycheck - mostly because I learned this lesson late in life (20 years ago) so I'm playing catch up, but if you're young you can start with 4% and trust me - you won't notice it coming out of your check. I have an IRA I've been contributing to for about ten years as well but I'm just talking about the 401k since most employers match up to 4% of your contributions (some do more, but most are at 4%). Meaning, if your annual salary is $50k your employer will contribute money out of their profits in the amount of 4% of your salary to your 401k, every year. Sure, that's only $2,000 but that's a free $2,000... for doing nothing. The shit part about all this, because we're talking money after all, is if the market crashes your accounts lose money. Not a lot but enough to make you angry. I feel like there should be a new thread about retirement savings. LOL! Edited March 25 by Joker 2 6 Quote Link to comment Share on other sites More sharing options...
mr.yuck Posted March 25 Share Posted March 25 29 minutes ago, Joker said: I feel like there should be a new thread about retirement savings. LOL! Do it. I'm gonna be honest. I have $0.00 towards retirement. I have a plan, though. I'm not sure if it's a good one. But I do have a plan. 4 Quote Link to comment Share on other sites More sharing options...
Mercer Posted March 25 Share Posted March 25 (edited) Fully agree on the retirement savings. My parents both grew up pretty poor, joined the army and we didn't have shit growing up. They started doing better when us kids moved out and did one hell of a job with their 401Ks. It's a sharp contrast between them, and their siblings in retirement. I hate seeing people in their 70's working as a greeter at wallmart, or standing in the isle at the drug store deciding between food or their prescription. Even worse is late stage when they end up in retirement/nursing homes and the quality of care is sub-par. I know a lot of people like to live like they might not be here tomorrow, but the overwhelming odds you will be are pretty obvious. Also, the whole Bitcoin/stocks thing is fun and all, but not a substitute for actual savings and investment into something you can mostly count on. I'm into 401ks simply because that's less money going towards taxes. A win/win. Investments like that are gambles, and fall into discretionary type spending category, you still need something sound to retire with and that's always going to be more of a priority. I'm at the point I could almost afford to retire to Argentina and live well in the mountains of Patagonia, or Mendoza now. Knowing I've got a secure future is much more satisfaction & happiness than I get from consumerism, and I'm a pretty consumeristic person. Edited March 25 by Mercer 4 Quote Link to comment Share on other sites More sharing options...
abrasivesaint Posted March 25 Share Posted March 25 I have always opted into every retirement plan an employer has ever offered. To me, it’s just another savings account that employers also pitch into. That said, i don’t appreciate the concept of retirement like most folks do. 3 Quote Link to comment Share on other sites More sharing options...
fat ralphy Posted March 26 Share Posted March 26 I put 15% into a pretax investment account - I am also working in a pension system though and get (years of service x 2.5 = percent of my highest year of salary fo life) I cant retire until I am 55 though so I have more time to work into it - With the HCOL in the Bay Area its hard to save outright . 3 Quote Link to comment Share on other sites More sharing options...
LUGR Posted March 26 Share Posted March 26 55 is earlier than most. 1 Quote Link to comment Share on other sites More sharing options...
Mercer Posted March 26 Share Posted March 26 I haven't been doing so well saving myself even with contributing to the 401k. Most of my "savings" goes towards home improvements to increase my properties value. I bought a beautiful home in a pricy area that was used as a rental property for 20 years and neglected before that. Needed everything redone, I bought it because I know how to do pretty much all the work it needed. For the next two years my focus will be upping it's value and nothing more. Then I'll get on some maxing out the 401K contributions again, and most likely cash this home out and build another home from scratch hopefully living mortgage free. I'm kind of scrambling because my father in law in Argentina, and mom may need a place to stay nearby family, and I'l like to have a larger property for that where they can have their own space. Possibly a guest house or MIL apartment or two. I know it would be more responsible to make double payments, drop 10/15% in the 401k but unfortunately my wife and I aren't as responsible as we were years ago. We like having an unnecessarily nice house, and my wife is way worse on the consumerism tip so she's on board with the improvements heavy. 2 1 Quote Link to comment Share on other sites More sharing options...
Joker Posted March 27 Share Posted March 27 Honestly, I don't think that's a bad plan @Mercer. Taking a cruddy home in a good neighborhood and bringing it back to life is a good investment in itself, and is basically the same as putting money in a savings/retirement account. It's incredible how someone can spend $100k in materials and supplies to fix up a broken down home and get double that investment, if not more, in return. Being able to do the work yourself makes that small investment go even further. Between our last house and this one I've become a lot more confident in taking on projects myself instead of hiring them out. Drywall and mud & taping used to scare the crap out of me but I forced myself to do it in my last house and realized that it wasn't as hard as I thought. I mean, I'm not nearly as fast as the pros but I can get pretty good results on my own. It's saved me a lot of money. And Youtube has been a savior for tutorials on how to do things as well as tips/tricks. Our first home we bought in 2002 for $125k. That same home today is worth $600k, and looking on Zillow and Google street view I can see they've done absolutely nothing to the interior or exterior since we sold it. So they've basically made $475k for doing nothing. Wild. 2 1 Quote Link to comment Share on other sites More sharing options...
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