OK, let's say you can put cash in the bank or ... - GoFuckYourself.com

RayVega · 08-31-2006, 02:55 PM

I'm selling my house and moving from new York to another state where the real estate is much less expensive. Now, I have a nice chunk of change coming since I have a built some equity in the current home. More than enough to buy a nice home in Minnesota without holding a mortgage at all.

now:

Financial Consultant#1 says don't buy a house outright or put a big down payment down, but borrow just under 80% and keep the cash in your possession where you can make it work for you either by investing in more real-estate or in an interest bearing account. Cash in hand beats all, use other people's money, not your own!

Financial Consultant says, put it all in the new home, lower or no monthly payments means less stress and more security.

So just for kicks, what would you do?...

Chris · 08-31-2006, 02:57 PM

that is all up to you really
do you want the money to grow or do you just want out of morgage payments???

mattz · 08-31-2006, 02:57 PM

I would put it in for the house...their is always a chance of loosing money with an investment...but thats just me.

mikeyddddd · 08-31-2006, 02:57 PM

Just for kicks, I'd put it in g-strings.

Daruma · 08-31-2006, 02:59 PM

pay off new house
you can always get a loan against the house if needed

squishypimp · 08-31-2006, 03:00 PM

its safer to just drop it into your own home cause really you cant loose it ever. However you can be risker and invest it but you have a higher chance of loosing it all...

Itchy · 08-31-2006, 03:04 PM

OPM
Invest the cash

Elli · 08-31-2006, 03:07 PM

Buying all-in into a house when the market is already stupidly high... hmmm might be better to get the mortgage, play with the extra money, and watch the market. If it comes down, then you haven't lost that much.

avolongold · 08-31-2006, 03:07 PM

pay your house off, if things ever go bad down the road at least you won't have to worry about mortgage payments which is usually a person's biggest expense.

Plus the major chunk of money you make now can go into your pocket or towards other things

mikesouth · 08-31-2006, 03:07 PM

http://www.clarkhoward.com

08-31-2006, 03:11 PM

I'd pay off the house assuming it's in a semi-strong or a growing market. It's easy for a consultant to tell you to invest, as he'll almost get a % off the top. Investments often have a chance of getting wiped out. Stck with the sure thing, and if there is ever a nice op that comes up to invest in, you can borrow money against the house.

dennisthemenace · 08-31-2006, 03:14 PM

Since you said more than enough to pay off the house, I would:

Pay for the house. Invest the remainder in something long term and safe as hell.

Then with the money you'd be paying to a mortgage you can split into percentages - so much to live off, so much for tame investments, so much for crazy, risky stuff and so much to stuff into the mattress for when the markets and planet go to poop.

RayVega · 08-31-2006, 03:46 PM

Interesting mix of opinions...good point about the market being at it's height and interest positioned to go up from here though...interesting decision.

RayVega · 08-31-2006, 03:47 PM

aw screw it...i'm gonna blow it on hookers and booze! and live in a box under a railway station...

Fizzgig · 08-31-2006, 03:50 PM

Quote:

Originally Posted by Chris

that is all up to you really
do you want the money to grow or do you just want out of morgage payments???

Getting out of mortgage payments rules.

Instead of paying interest you can put your money into savings, invest it or just party a lot.

Boobzooka · 08-31-2006, 05:27 PM

I would (and have) purchased my home in cash. I don't like debt and I believe there are hard times ahead. Better to have the necessities secured than put yourself at risk trying to squeeze out some extra luxury. I suppose I'm simple-minded that way. That said, I also believe that rapid inflation will lighten any personal debt load, so maybe you want to take advantage and gamble. That's not my nature.

WiredGuy · 08-31-2006, 05:32 PM

Pretty simple decision really. Find out what percentage you'll get getting a mortgage. If you think you can make a higher percentage by investing the money, then get the mortgage. Otherwise, buy the house outright.

WG

free4porn · 08-31-2006, 05:35 PM

Quote:

Originally Posted by RayVega

aw screw it...i'm gonna blow it on hookers and booze! and live in a box under a railway station...

You beat me to my suggestion

But if you decide not too, invest it!

selena · 08-31-2006, 05:37 PM

I'd pay the house off, because I like the security of knowing shelter is assured.

Then I'd taken any extra, plus 10% of my earnings, and invest.

DWB · 08-31-2006, 05:38 PM

OWN the house.

That is not the best financial advice and many will say that is downright dumb, but do not live in dept. Don't do it.

If you live in dept, you live in chains. And to be honest, if you can afford to drop the cash on a house, you probably don't need to worry much about making that money work for you somewhere else.

MandyBlake · 08-31-2006, 05:38 PM

pay cash for the mortgage.

RayVega · 08-31-2006, 06:04 PM

Seems like the majority has the money in the real estate...

Chris Corn · 08-31-2006, 07:59 PM

Borrow for the house 75% and use the rest for a very large investment property. The investment property, large plex unit will pay for your mortgage with lots left over. So you get two things instead of one, a house plus and investment and all the original money stays intact since they are very unlikely to depreciate historically in value. Your investement grows in value, your tenants pay down whatever dept you have and they also pay for your residence. You also get to write off a whole tone of shit, travel, computer, office, portion of your house, etc.

08-31-2006, 02:57 PM	#2
Chris Too lazy to set a custom title Industry Role: Join Date: May 2003 Location: icq: 71462500 Skype: Jupzchris Posts: 27,880	that is all up to you really do you want the money to grow or do you just want out of morgage payments??? __________________ [email protected]

08-31-2006, 02:57 PM	#4
mikeyddddd Viva la vulva! Join Date: Mar 2003 Location: you can't please everyone, so you got to please yourself Posts: 16,557	Just for kicks, I'd put it in g-strings. __________________ AdultStarProfits AmbyaCash AnilosCash AzianiGold ColdHardCash FlashTheMoney IdolBucks MediumPimpin NSCash Nubiles PussyCash ScoreCash Sextronix SpunkyCash TubeTitans Twistys

08-31-2006, 02:59 PM	#5
Daruma Confirmed User Join Date: Nov 2002 Location: PandaLand™ Posts: 3,494	pay off new house you can always get a loan against the house if needed __________________ RIP TD

08-31-2006, 03:00 PM	#6
squishypimp PostMaster General Join Date: Aug 2006 Posts: 10,781	its safer to just drop it into your own home cause really you cant loose it ever. However you can be risker and invest it but you have a higher chance of loosing it all... __________________ Signature For Sale

08-31-2006, 03:04 PM	#7
Itchy Datetronix.com Industry Role: Join Date: Jan 2001 Location: Chill-A-Wack BC Posts: 6,525	OPM Invest the cash __________________ ICQ: 2588560 Skype: Pornocop

08-31-2006, 02:55 PM	#1
RayVega Confirmed User Industry Role: Join Date: Jul 2004 Location: New York ICQ#348007554 Posts: 4,212	OK, let's say you can put cash in the bank or ... I'm selling my house and moving from new York to another state where the real estate is much less expensive. Now, I have a nice chunk of change coming since I have a built some equity in the current home. More than enough to buy a nice home in Minnesota without holding a mortgage at all. now: Financial Consultant#1 says don't buy a house outright or put a big down payment down, but borrow just under 80% and keep the cash in your possession where you can make it work for you either by investing in more real-estate or in an interest bearing account. Cash in hand beats all, use other people's money, not your own! Financial Consultant says, put it all in the new home, lower or no monthly payments means less stress and more security. So just for kicks, what would you do?... __________________ Ray "The Don" Vega Managing Director Private Equity Fund [email protected]

08-31-2006, 02:57 PM	#3
mattz Confirmed User Industry Role: Join Date: Dec 2001 Location: AZ Posts: 7,697	I would put it in for the house...their is always a chance of loosing money with an investment...but thats just me.

08-31-2006, 03:07 PM	#8
Elli Reach for those stars! Industry Role: Join Date: Apr 2003 Location: Vancouver, BC Posts: 17,991	Buying all-in into a house when the market is already stupidly high... hmmm might be better to get the mortgage, play with the extra money, and watch the market. If it comes down, then you haven't lost that much. __________________ email: [email protected]

08-31-2006, 03:07 PM	#9
avolongold Confirmed User Join Date: Jul 2006 Posts: 580	pay your house off, if things ever go bad down the road at least you won't have to worry about mortgage payments which is usually a person's biggest expense. Plus the major chunk of money you make now can go into your pocket or towards other things

08-31-2006, 03:07 PM	#10
mikesouth Confirmed User Industry Role: Join Date: Jun 2003 Location: My High Horse Posts: 6,334	http://www.clarkhoward.com __________________ Mike South It's No wonder I took up drugs and alcohol, it's the only way I could dumb myself down enough to cope with the morons in this biz.

08-31-2006, 03:11 PM	#11
shermo Guest Posts: n/a	I'd pay off the house assuming it's in a semi-strong or a growing market. It's easy for a consultant to tell you to invest, as he'll almost get a % off the top. Investments often have a chance of getting wiped out. Stck with the sure thing, and if there is ever a nice op that comes up to invest in, you can borrow money against the house.

08-31-2006, 03:14 PM	#12
dennisthemenace Confirmed User Join Date: Feb 2003 Location: In the present moment Posts: 2,668	Since you said more than enough to pay off the house, I would: Pay for the house. Invest the remainder in something long term and safe as hell. Then with the money you'd be paying to a mortgage you can split into percentages - so much to live off, so much for tame investments, so much for crazy, risky stuff and so much to stuff into the mattress for when the markets and planet go to poop. __________________ All the best to you

08-31-2006, 03:46 PM	#13
RayVega Confirmed User Industry Role: Join Date: Jul 2004 Location: New York ICQ#348007554 Posts: 4,212	Interesting mix of opinions...good point about the market being at it's height and interest positioned to go up from here though...interesting decision. __________________ Ray "The Don" Vega Managing Director Private Equity Fund [email protected]

08-31-2006, 03:47 PM	#14
RayVega Confirmed User Industry Role: Join Date: Jul 2004 Location: New York ICQ#348007554 Posts: 4,212	aw screw it...i'm gonna blow it on hookers and booze! and live in a box under a railway station... __________________ Ray "The Don" Vega Managing Director Private Equity Fund [email protected]

08-31-2006, 05:27 PM	#16
Boobzooka Confirmed User Join Date: Aug 2006 Location: BOOBZOOKA.COM Posts: 626	I would (and have) purchased my home in cash. I don't like debt and I believe there are hard times ahead. Better to have the necessities secured than put yourself at risk trying to squeeze out some extra luxury. I suppose I'm simple-minded that way. That said, I also believe that rapid inflation will lighten any personal debt load, so maybe you want to take advantage and gamble. That's not my nature.

08-31-2006, 05:32 PM	#17
WiredGuy Pounding Googlebot Industry Role: Join Date: Aug 2002 Location: Canada Posts: 34,486	Pretty simple decision really. Find out what percentage you'll get getting a mortgage. If you think you can make a higher percentage by investing the money, then get the mortgage. Otherwise, buy the house outright. WG __________________ I play with Google.

08-31-2006, 05:37 PM	#19
selena Confirmed User Join Date: Aug 2004 Location: On The Edge Posts: 7,994	I'd pay the house off, because I like the security of knowing shelter is assured. Then I'd taken any extra, plus 10% of my earnings, and invest. __________________ ~ Doer of Things at MetArtMoney Where Flawless Beauty Meets Art ~The MetArt Network ~ selena.delgado9

08-31-2006, 05:38 PM	#20
DWB Registered User Industry Role: Join Date: Jul 2003 Location: Encrypted. Access denied. Posts: 31,779	OWN the house. That is not the best financial advice and many will say that is downright dumb, but do not live in dept. Don't do it. If you live in dept, you live in chains. And to be honest, if you can afford to drop the cash on a house, you probably don't need to worry much about making that money work for you somewhere else.

08-31-2006, 05:38 PM	#21
MandyBlake The one and only! Industry Role: Join Date: Nov 2002 Location: Atlanta, GA Posts: 17,761	pay cash for the mortgage. __________________ Mandy's Playhouse Her First Fat Girl If you're interested in promoting my sites, ICQ me! 178411921

08-31-2006, 06:04 PM	#22
RayVega Confirmed User Industry Role: Join Date: Jul 2004 Location: New York ICQ#348007554 Posts: 4,212	Seems like the majority has the money in the real estate... __________________ Ray "The Don" Vega Managing Director Private Equity Fund [email protected]

08-31-2006, 07:59 PM	#23
Chris Corn Confirmed User Join Date: Jul 2006 Location: Canada Posts: 237	Borrow for the house 75% and use the rest for a very large investment property. The investment property, large plex unit will pay for your mortgage with lots left over. So you get two things instead of one, a house plus and investment and all the original money stays intact since they are very unlikely to depreciate historically in value. Your investement grows in value, your tenants pay down whatever dept you have and they also pay for your residence. You also get to write off a whole tone of shit, travel, computer, office, portion of your house, etc. __________________ I shoot video. Corn.Christopher (at) gmail.com ICQ 212-072-421