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Feb 22, 2019
1:47
:30
pm
JONBOY
All-American
Did this, moved into a bigger house after 6 years and kept the first as a rental
For 10 years, sold it for a $100k gain plus the $40k we paid down the mortgage and will be debt free in 3 years
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JONBOY
New username
Blue Ridge
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JONBOY
Joined
Jun 20, 2001
Last login
Jan 26, 2021
Total posts
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Messages
Author
Time
One of the worst financial decisions a new grad or new professional can make is buying a bigger home than you need.
Baron
There was no collusion
2/22/19 1:11pm
That's why if you're smart, you move to a place like the SF Bay Area, where you
mik3
2/22/19 1:12pm
RE: That's why if you're smart, you move to a place like the SF Bay Area, where you
Tokolosh
2/22/19 1:14pm
RE: One of the worst financial decisions a new grad or new professional can make
CougarHut
2/22/19 1:17pm
But now days you need to have a minimum of $24,000 to itemize.
JAGA97
2/22/19 1:20pm
Most people stay in their home far less time than they anticipate.
garyfan
2/22/19 1:23pm
I think we'll see this change. Assuming interest rates head higher over the next few years, it will be more
HarlemCoug
2/22/19 3:06pm
I take the opposite position...stretch more than you think on your first place
Iman23
2/22/19 1:23pm
Yea that is great if you want to kill your gainz. This is for people who want to be good at making money and not slaves
Baron
2/22/19 1:25pm
The utility of the extra features of a house that makes you house-poor doesn't
TaiJuan
2/22/19 1:28pm
<< Deleted >>
Rooney
2/23/19 5:27am
Bottom line is, stretch on investment instead of consumption
hansel
2/22/19 1:49pm
True fact.
cougfanz
2/22/19 2:03pm
Also renting is OK. It is not "throwing your money away" like some people think
JackStack
2/22/19 1:24pm
If you have a mortgage, you are simply renting money rather than a house.
crack
2/22/19 1:25pm
But you can live in a house and can't live in money.
garyfan
2/22/19 1:28pm
the difference is that while renting, you are generally much more flexible
JackStack
2/22/19 1:38pm
renting has additional benefits
grandpacoug
2/22/19 1:44pm
Unless the owner is subsidizing the tenants those costs still go into the rent being charged...
Tokolosh
2/22/19 1:48pm
Renting is the right choice at times. But often people confuse the rent vs buy decision...
Tokolosh
2/22/19 1:46pm
there is another benefit to owning a home which no one has mentioned yet.
grandpacoug
2/22/19 1:49pm
One of the worst financial decisions a person can make is marrying a spouse who is bad with money.
Sea Chicken
2/22/19 1:25pm
Probably the most important choice after your career.
Baron
2/22/19 1:27pm
In some cases, could be more important than your career.
crack
2/22/19 1:28pm
What's worse is I've seen non-married people do this. What a waste of money and
GAINZ
2/22/19 1:25pm
What would a single person do with all that space? And it's not like they are going to stay there after they get married
Slim
2/22/19 1:43pm
I mostly agree, except in some places it’s cheaper to get a mortgage for a 3
Lieutenant America
2/22/19 4:06pm
I think it's just as bad to move multiple times within the same city.
Fatalplacebo
2/22/19 1:29pm
This seems to be what floats the economy of St George.
kccougar
2/22/19 1:44pm
at the current time you are probably correct about St. George.
grandpacoug
2/22/19 1:46pm
I would expect a new grad to move multiple times in the first decade anyway. why buy a house?
byujag
2/22/19 1:30pm
Are you talking about switching companies?
Great38
2/22/19 1:52pm
It depends. Early career job switching has become a lot more common...
Tokolosh
2/22/19 1:55pm
Yea. This probably depends some on career and market in the city you live.
Cougar8Duck
2/22/19 3:17pm
False. I overextended myself 6 years ago and it’s been a fantastic decision
SlantRoute
2/22/19 1:43pm
This is called survivorship bias.
mik3
2/22/19 1:44pm
Fine by me. Call it whatever you want. Took a risk and it’s been awesome
SlantRoute
2/22/19 1:50pm
How much did you put down?
Baron
2/22/19 1:52pm
Glad to hear. Pointing out that your experience doesn't make OP "False".
mik3
2/22/19 1:55pm
I know. I’m purposely being a little obtuse
SlantRoute
2/22/19 3:05pm
And you’d be singing a much different tune if things had gone the other way
BYUFootballisBack
2/22/19 1:46pm
If you bought two homes and rented it out, you would have doubled that
Baron
2/22/19 1:46pm
if buying one rental house is good, buying two must be better and why not 10....
grandpacoug
2/22/19 1:50pm
well, you aren't wrong. If you have the financing it's a smart move
Saxa
2/22/19 1:51pm
I hope to some day. But you are the pro at that
Baron
2/22/19 1:52pm
Did this, moved into a bigger house after 6 years and kept the first as a rental
JONBOY
2/22/19 1:47pm
great strategy.
grandpacoug
2/22/19 1:51pm
That was my plan. Timing didn't work. Bought the first house in 2008.
Cougarrr
2/22/19 2:40pm
Yep. U also lose leverage. Doctors make that mistake all the
cougfanz
2/22/19 2:02pm
These days the doctors are much more worried about their student loan payments than their mortgage payments. Those
Slim
2/22/19 2:33pm
I think it's a bad idea in general to stretch too far in buying a house
Belboz
2/22/19 2:03pm
We bought a smaller home that we plan to rent out
Crazy Duck
2/22/19 2:04pm
I generally agree. But there are many instances when buying big can pay huge
JAGA97
2/22/19 2:15pm
False, I did that and now I own two homes, rent one out and it pays nearly both
Romex
2/22/19 2:18pm
And you make the mistake of ignoring opprtunity costs.
Baron
2/22/19 2:23pm
Laugh if you like but you could have a third home by now. But not everyone can get the gainz.
Baron
2/22/19 2:59pm
I want to live in a nice house. I spend a lot of my life there and I only
Windward_Coug
2/22/19 2:27pm
Where did I say not to do that? And ok'd people can burn their money if it makes them feel good. Not so much a 23 year
Baron
2/22/19 2:28pm
I'm just saying that CB generally looks down on those that spend to have a nice
Windward_Coug
2/22/19 3:01pm
See, I think the problem many fall into is thinking house prices always go up
crack
2/22/19 3:08pm
I agree. It ties up a lot of money. Best bet is to get something very
WizeGuise
2/22/19 2:43pm
Not as bad as leasing expensive cars, phones, etc..
byu1
2/22/19 3:01pm
If you are a yewt, save your money and buy the gas station you work at.
Bovine University
2/22/19 3:25pm
RE: If you are a yewt, save your money and buy the gas station you work at.
Tokolosh
2/22/19 3:31pm
I'm still trying to figure out how to come up with the down payment.
Rooney
2/23/19 5:29am
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