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My life is a crazy, unpredictable, jumbled mess of fun. Each day creating adventures and stories that will last a lifetime 

Monday, May 9, 2011

Free Advice vol 4 - Housing

Today lets talk about something serious - Housing. 

Why is it serious? Because of peoples view point.

Why did all this spiral out of control? Greed. 

This is a double edge sword. The banks were greedy and offered pushed people into bigger houses than they could easily afford. At the same time many home owners were making unwise choices , second and third mortgages, Rv loans, boat loans, multiple maxed credit cards. The list goes on.

Now don't get me wrong, I don't think that it was only the Banks that collapsed the economy - the 911 attack coupled with raising gas prices all played a role. One we could have handled, all three was a trifecta of bad timing and bad planning.

Why do I think view point matters? This is something that I don't really understand. Some articles are like this one showing a downturn, but also showing that now is a good time to buy. Others say that to buy a house is no longer a good idea and a waste of money.

Since when did buying a house become about making money? 

I wanted a house that I knew how much I was going to pay each month for the rest of my loan.
I wanted a place I can invest in, fix up, paint, and make my own.
I want a my own space, where no one save the city can dictate to me what I do on my property.
I also want a place I can retire in. A place that has been paid off.

Lets get real, I read about women living in cheap apartments eating cat food to survive and I wonder what life would be like if they only had to pay yearly taxes on a paid off house rather than a monthly payment on an apartment which will continue to raise its rates every few years.
If your a family that moves often then it would be a good idea to rent and have a future house fund off to the side for when you can settle down.
Buying a house and staying there in your thirties is really the best thing you can do. 

Take us, we bought our home for 110,000. with a 4.75 fixed rate over 30 years. My husband was 36 the day we bought our home and will be 66 the day we are done paying for it if we don't pay it off sooner! 

He can retire at 67 using all his retirement money for LIFE and eventually medicine. This is our plan if everything in life goes well. We have life insurance to protect us in case it goes bad.

To me a house is not something to make money off of - rather its something that will eventually save me money. Right now with all the extra fees, roof and pmi added onto our loan we pay 845.00 a month within ten years we will only owe 670.00 (or less) a month. Housing rates, Renting rates and my husbands income will all continue to rise. Which equals more money a month for us to live on. 

Housing is an investment but it depends on how you look at it. For me its an investment for our future. For others its all about the value. 
I don't know about you but its not easy in any market to find a 4 bedroom 2 bath 1900 sq foot house for 110,000. Zillow already has our home valued at 148,000.Does that mean anything to me? 

Not really its not why I bought my home. Just make sure to have all the facts before listening to all the fear mongering that they are pushing now. And yes that's my free advice for the day!

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