Is Your Home the Only Investment You Need?

re: Is Your Home the Only Investment You Need?

WobblyJelly — Fri, 16 Mar 2007 12:21:05 GMT

I'm wanting to buy my first home, but I find all this news on the housing market a bit scary. Should I wait for things to settle before buying and how long would that be?

re: Is Your Home the Only Investment You Need?

Barney — Fri, 16 Mar 2007 12:37:01 GMT

In an ideal world every dollar borrowed should be for appreciating assets only. Unfortunately, we don't live in an ideal world. If I hear one more financial planner preach about "living within your means" as the solution to all the world's problems I'm going to be sick.

The real reason they want you to live within your means: so you'll have more money to buy their mutual funds with high management fees. The rich get richer while the rest of us dream of being the ones giving it to the average guy.

re: Is Your Home the Only Investment You Need?

WealthyGeek — Fri, 16 Mar 2007 12:42:11 GMT

Good article. Homeownership is not necessarily the path to becoming ‘wealthy’; but it can be the path to coming (slightly) less uncomfortable financially, at least in the long term. I’m wondering, though, about the strategy of paying off your house as quickly as you can. Even the most astute financial planners disagree on this point. Some will tell you not to bother, because a home mortgage is just about the cheapest money you can borrow. Other will tell you that you *should* pay it off as fast as possible, provided you’re disciplined enough to invest wisely the money you save yourself in interest payments.

re: Is Your Home the Only Investment You Need?

Michael — Fri, 16 Mar 2007 15:35:37 GMT

If you are in the market for buying a home, and you live in the US, I'd say wait to buy. House prices are dropping, and you may be able to get a great deal if you can wait. It's no longer a matter of trying to catch the market as it pulls away from you -- at least not in most areas.

If you live in Canada, it's a whole other ballgame. The market there is still singing along, and the prices are still going up overall. If you want to buy, now is as good a time as any, given that prices show no signs of dropping -- especially in the white hot Alberta markets.

re: Is Your Home the Only Investment You Need?

The Bruce Goose — Fri, 16 Mar 2007 20:53:12 GMT

I live in Canada. Are you sure the housing market here won't follow the American trend. I'm a renter who finds the current market ridiculously overpriced. Are you saying there's no relief in sight?? Dang!

re: Is Your Home the Only Investment You Need?

Marsha — Sat, 28 Apr 2007 12:25:22 GMT

I use this software program for homeowners to accelerate the payoff of my mortgage. It is saving me thousands, and paying off in half the time.

What I've Learned From Blogging On Real Estate

Mortgage Guide 101 Blog — Fri, 08 Jun 2007 12:08:23 GMT

I'm back early from my vacation (sometimes, you just can't predict how kids will react to a trip) and

re: Is Your Home the Only Investment You Need?

Scott — Mon, 25 Jun 2007 22:07:16 GMT

The WealthyGeek quoted financial planners who say mortgage money is about the cheapest money you can borrow. Agreed! It's even better to borrow against your home if you're not paying back your primary mortgage, but instead leveraging the equity to acquire appreciating assets that will enhance your wealth and quality of life in retirement, if not now. There are new lending programs that leverage cash flow to create equity in a property faster, allow for full interest deductions (be sure to confirm your situation with your CPA), and require no changes in spending behavior. Then, the equity that is generated can be applied to wealth building investments, eg, real estate, business acquisition, or in tax-advantaged opportunities. Indeed, you don't have to pay off the house if you don't want to, but it's good to know how to generate equity that can be leveraged aggressively and SAFELY to accelerate wealth building.