Quote:
Originally Posted by Sly
Ok Will... if the question is "do I take my extra money and put it towards my house or do I take my extra money and let it sit in my bank account?", then I will agree with you. Yes, put it towards the house so long as you have a little cash on hand in case of emergency (you don't want to pay for emergencies with credit cards if you don't need to.)
Overall though, I don't think that's full advice. But like you said, that does answer the question.
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I don't know who "they" is but "they" say you should have at least 6 months reserve in savings to be able to pay all your bills, I think 12 months is ideal because as we all know it can take time to get back up on your feet.
So never have all your eggs in one basket, or house in this case. It's hard topull the money out once it's in, banks in the states seem to be in bad place right now and refinancing for more isn't something they seem willing to do.
Listen to Sagi, never invest money you can't afford to lose, because at some point it'll happen, you never win on all bets.
I'm looking at picking up a couple rental properties in Phoenix, by my calculations I'll get about 5% on my investment plus any appreciation on the home, and if the USD$ ever goes up again I hope to make a gain there. Problem is it only works on cash deals and if the properties are rented, I would love to do it on a bigger scale but as a Canadian it's pay in full or sorry can't play at all.
