It does matter! It allows you access to cheap forms of debt through cash out refinance or HELOC...sonyminidiscman wrote: ↑ if its your primary residence it doesnt matter. my house double in price but i aint richer . unless you can sell and rent and move between houses without too much work. can be done when you are single... much harder if you are married and kids lol.
with the amount of free money given out this year, your money will only devalue faster. if house prices were to fall, it'll be the big million dollar homes that will get affected. basic starter homes will likely be ok.
yes this is exactly the wrong way of thinking.sonyminidiscman wrote: ↑ if its your primary residence it doesnt matter. my house double in price but i aint richer . unless you can sell and rent and move between houses without too much work. can be done when you are single... much harder if you are married and kids lol.
with the amount of free money given out this year, your money will only devalue faster. if house prices were to fall, it'll be the big million dollar homes that will get affected. basic starter homes will likely be ok.
I have a home, an investment home, and will also be planning to 'buy' my parent's home in a pretty prime location (my wife too with her parent's home). Contrary to "oh, I own a home so it doesn't matter", I don't want the house prices to keep sky rocketing. It's bad for society, for my kids, and their future kids if they have any (that's the way I think, and that others are missing the boat on).sonyminidiscman wrote: ↑ if its your primary residence it doesnt matter. my house double in price but i aint richer . unless you can sell and rent and move between houses without too much work. can be done when you are single... much harder if you are married and kids lol.
with the amount of free money given out this year, your money will only devalue faster. if house prices were to fall, it'll be the big million dollar homes that will get affected. basic starter homes will likely be ok.
you shouldn't be using your house as a bank account. i don't know why you would want to take a heloc out of your primary residence.xxfirexx23 wrote: ↑ It does matter! It allows you access to cheap forms of debt through cash out refinance or HELOC...
more specifically, just the point you made on principle residence rising in price doesn't matter, it does. Particular, if you don't own a home for a principle residence, you're now priced out. This is the poorer getting poorer, and richer getting richer. You noted in your other post that you shouldn't use your house as a bank account. But in my opinion, you definitely should. It's just like any other investment, use your investment to make more money. Money rolls like a snowball and therefore rich becomes richer (if you do it right with discipline). If you don't do that, and like you say, stay comfortable and stale, then sooner or later you'll start to fall in the poorer becomes poorer category (because of the devalue like you noted).sonyminidiscman wrote: ↑ what is the right way to think about this.
To fund any business activities you may want to undertake.sonyminidiscman wrote: ↑ you shouldn't be using your house as a bank account. i don't know why you would want to take a heloc out of your primary residence.
I used that back in March to invest in the stock market and I just replaced my summer car and more than 1/2 of it come off from that profit.sonyminidiscman wrote: ↑ you shouldn't be using your house as a bank account. i don't know why you would want to take a heloc out of your primary residence.
You shouldn’t be doing that to fund your purchases at the mall but you can definitely use it to invest and make more money. People use it if they need to purchase another property and need the down payment cash before they sell their place. Tons of reasons why you should and shouldn’t use your HELOC.sonyminidiscman wrote: ↑ you shouldn't be using your house as a bank account. i don't know why you would want to take a heloc out of your primary residence.
My rule to myself is that HELOC from your primary home should be last resort. But many use heloc to buy a pool, buy a car, get a nice fridge and nice kitchen cabinet. yes, certain time, math does make sense. but what I got from OP is that he is a first time home buyer trying to decide if he should buy now or wait till next year for his primary home. none of these heloc stuff would apply to him for a while as he won't have enough equity in the house to use heloc.bobbings wrote: ↑ You shouldn’t be doing that to fund your purchases at the mall but you can definitely use it to invest and make more money. People use it if they need to purchase another property and need the down payment cash before they sell their place. Tons of reasons why you should and shouldn’t use your HELOC.
I use the heloc to invest in march, if my investment is down I wouldn't cash out to buy a car.sonyminidiscman wrote: ↑ so you risked your house to buy a depreciating asset. thats not recommended. its great you made money from it i am happy for you.
I'm glad not everyone thinks like this. You shouldn't take out a loan against your house to buy clothes, but I see no problem doing so to fund investments.sonyminidiscman wrote: ↑ you shouldn't be using your house as a bank account. i don't know why you would want to take a heloc out of your primary residence.
that depends on what you call investments. investing in your business or investing in stocks are 2 different thing. wouldn't recommend anything to take heloc to buy stocks.
In my area basic starter houses start at 800 and up for townhouses....million dollars won't even cut it for a basic stand alone house.sonyminidiscman wrote: ↑ if its your primary residence it doesnt matter. my house double in price but i aint richer . unless you can sell and rent and move between houses without too much work. can be done when you are single... much harder if you are married and kids lol.
with the amount of free money given out this year, your money will only devalue faster. if house prices were to fall, it'll be the big million dollar homes that will get affected. basic starter homes will likely be ok.
ky.antz wrote: ↑ more specifically, just the point you made on principle residence rising in price doesn't matter, it does. Particular, if you don't own a home for a principle residence, you're now priced out. This is the poorer getting poorer, and richer getting richer. You noted in your other post that you shouldn't use your house as a bank account. But in my opinion, you definitely should. It's just like any other investment, use your investment to make more money. Money rolls like a snowball and therefore rich becomes richer (if you do it right with discipline). If you don't do that, and like you say, stay comfortable and stale, then sooner or later you'll start to fall in the poorer becomes poorer category (because of the devalue like you noted).
Long story short, what i'm trying to say if people with that mindset will get complacent and miss out on good money making opportunities.
That’s your risk tolerance and you seem more risk averse than others but that’s fine. Some people will borrow to fund investments in risky stocks or RE or anything that could potentially hit a home run. Imagine going all out on Tesla stocks before the surge this year.sonyminidiscman wrote: ↑ that depends on what you call investments. investing in your business or investing in stocks are 2 different thing. wouldn't recommend anything to take heloc to buy stocks.
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