| RE:Real estate question... |
Subject: RE:Real estate question... by redwing76 on 2008/2/10 4:29:54 Ok, stepping out here, but paying 30 yrears on a motrgage is stupid. After the 1st ten years you've paid off the house. The next 20 years are all profit for the fat cat wall street investor that bought your house from the bank. Banks dont carry mortages, they sell the contract to a investor on wall street. Having a 1st and a second means that you put down less than 20%. In todays market that usually means that youre upside down in your home. If youre upside down you're wasting your time and money on a house that you'll never own. Who knows when your property will again gain value. Certainly not in the next 4-5 years. Real estate will fall 10% this year and 15% next year. Thats more than you can make up for in 5-10 years. What can you do? Make all of your payments and keep your credit at 100% and save all of the cash that you can its going to be along haul till real estate becomes profitable again. It may take 10 years so be prepared for the long haul. If you can save some money for the next two years you'll be in an excellent position to buy another home at a really reduced rate. Two homes are twice as good as one home, if one home goes up 10% two homes go up 20%. A word of caution renters can be real problem and costly there is no profit without risk. i bought a house in 1997 and refied it 4 years later and bought a house in another city and 2 years later I refied my house again and paied off my second house. My second house went up in value for enough to pay off my 1st house, but rather than pay off my 1st house I rented my 2nd house for a net of $700.00 a month. My 1st house I turned into a duplex for a net of $700.00 a month which is 65% of my mortage. After I paid off the 2nd house I bought a 3rd house that I held with no payments for 4 years and then I refied it to but my 4th house. I sold my 3rd house after its value peaked and netted $65,000 on it. I still have 3 homes with a debit of $284,000 on property worth at todays rate of $810,000. Buying one home and paying it off is stupid. Money never sleeps it has to keep on moving. Dont buy one home, buy two. |
