Quote:
Originally Posted by howard
If you have a family and you need schools for your kids then you buy. But it is a losing proposition. Take 30 years mort and pay least possible. Don't pay 1 cent extra to pay off loan.
I bought house in 1990 for 300k. I put 100k into. I sold house in 1998 for 330k. WERE IN SAME PERIOD NOW.
If you bought mutual fund in 1990 and sold it in 1998. Here is fidelity magellan. Its know as 1 of the best funds.
In 1990 FMAGX was $13. In 1998 $53. Let me do some math for you. I put 20% down on that house so lets use figure of 70k.
My $70,000 I put down on House I could have bought magellan and in 1998 it would have been worth $286,000
Real estate market is in same down turn. So Im saying history says DONT BUY INVEST NOW.
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shoulda, woulda, coulda...
this is 2010. you tell me where to invest my money to get 300% return in 7 years. it's all connected to risk. the more risk you take the more you make and the more you can lose. so expecting to gain that much in such a short period means you can affor to lose your 90k. do you? I am guessing not. therefore, do not tell me what you would be better off 20 years in the past. for 100 happy investing stories there's 100 unhappy ones.
I started throwing money into the funds when the crisis hit bottom. and I didn't expose myself. I made just enough to cover the losses and gain some.
and right now I'd be thrilled with about 8% annual return.
300%? well time to invest in shrilanka (this year alnoe they had 70%+ gains) or some other country I sure wouldn't stuck all my savings into. so...