What would you do?

[NaturalMystic]

I am about to sell my house that I bought ahead of the market skyrocketing. I would like to get any input on what you would do with the profits. I would like to buy another home, but would not be opposed to renting and investing the money. I would hate to buy and see the housing market continue to depreciate.




" It takes a revolution, to make a solution. Too much confusion, so much frustration." Bob Marley

 

[rapidtrends]

After I sold my house I would buy physical gold and silver.

Oh wait, I already did that!

 

[rapidtrends]

Seriously

 

[Cleaner44]

Can there be any doubt that the housing market will continue to depreciate?

Renting is definetly a good idea until the bottom is reached. Until then, personally I would invest the money and I love gold and silver for that purpose.

 

[Zippyjuan]

Nobody can tell you when or at what level price declines will bottom out. If you intend to live in the home for several years and can afford it now, I would go ahead and buy. For me, the idea of purchasing a home is to have it paid for by the time you retire so that you do not have that as an expense when your income level drops. I do not anticipate making money on my home- only living in it. Once it is paid for, then I will effectively make money since I will no longer have to pay rent or a mortgage. The declines will not go on forever.

I had a friend who tried to get me to sell my condo several years ago and wait for the prices to drop to what I paid for it and then buy it back again. Even today, the price I could sell it for is more than twice what I originally paid. If I followed his advice, I would not own one today and if I bought it back today I would be facing higher property taxes for the same place so I would have lost money. I kept it, kept my tax deduction on the mortgage interest payments, and have been paying down the principal in the mean time meaning it is closer to being paid for.

 

[NaturalMystic]

Thanks for the tips. I should profit 30-40k with the sale. I believe the money will be tax free due to living in the house for 5 years. If I invest in silver or gold and go to sell them down the road will the transaction be taxed. How confident are you in the hard money market for the next year? I may have some trouble talking my wife into doing this. It just makes me sick to think about using this money as a down payment and just to see the value of the home decrease by 50k.

 

[jonahtrainer]

Thanks for the tips. I should profit 30-40k with the sale. I believe the money will be tax free due to living in the house for 5 years. If I invest in silver or gold and go to sell them down the road will the transaction be taxed. How confident are you in the hard money market for the next year? I may have some trouble talking my wife into doing this. It just makes me sick to think about using this money as a down payment and just to see the value of the home decrease by 50k.

During deflation cash is EMPEROR. Gold is the ultimate form of cash.

Depending on your time horizon, I would put the currency into GoldMoney and have it split between gold, silver and some national currencies. Or, you could consider Harvest as the monthly distribution could cover your rent and it is a cash-flow beast.

For example, I recently drew down about 50k at 0% on a couple credit cards for 12 months. I am confident to put that capital to work in HTE and even sell puts and calls. With very little risk I will have at least about 58k in 11 months and pay off the cards. The capital is generating about 2k/month positive cash flow. Although highly unlikely, I am prepared to lose 5k before I liquidate the activity. After about 2 weeks the position is up about 1k (predictable for the cash-flow). I have played this game multiple times .... 0% money makes it just too easy and helps me keep increasing my credit lines. However, I am not confident enough to put that capital into physical bullion because Exchange Rate Risk is much less predictable from a cash-flow perspective.

 

[OptionsTrader]

I've got ideas if you want to pm me.

 

[Zippyjuan]

During deflation cash is EMPEROR. Gold is the ultimate form of cash.

Depending on your time horizon, I would put the currency into GoldMoney and have it split between gold, silver and some national currencies. Or, you could consider Harvest as the monthly distribution could cover your rent and it is a cash-flow beast.

For example, I recently drew down about 50k at 0% on a couple credit cards for 12 months. I am confident to put that capital to work in HTE and even sell puts and calls. With very little risk I will have at least about 58k in 11 months and pay off the cards. The capital is generating about 2k/month positive cash flow. Although highly unlikely, I am prepared to lose 5k before I liquidate the activity. After about 2 weeks the position is up about 1k (predictable for the cash-flow). I have played this game multiple times .... 0% money makes it just too easy and helps me keep increasing my credit lines. However, I am not confident enough to put that capital into physical bullion because Exchange Rate Risk is much less predictable from a cash-flow perspective.

Borrowing money on a credit card and investing in puts and calls is highly risky. If you do not have the money to pay it off within the twelve months you are charged interest for the entire period so you cannot weather the slightest downturn. Then you will be facing high interest plus any short term capital gains taxes. Gold is off its peak. Markets can be very volitile in the shorter term (six months). Just be sure you know all the risks.

 

[NaT805]

Nobody can tell you when or at what level price declines will bottom out. If you intend to live in the home for several years and can afford it now, I would go ahead and buy. For me, the idea of purchasing a home is to have it paid for by the time you retire so that you do not have that as an expense when your income level drops. I do not anticipate making money on my home- only living in it. Once it is paid for, then I will effectively make money since I will no longer have to pay rent or a mortgage. The declines will not go on forever.

I had a friend who tried to get me to sell my condo several years ago and wait for the prices to drop to what I paid for it and then buy it back again. Even today, the price I could sell it for is more than twice what I originally paid. If I followed his advice, I would not own one today and if I bought it back today I would be facing higher property taxes for the same place so I would have lost money. I kept it, kept my tax deduction on the mortgage interest payments, and have been paying down the principal in the mean time meaning it is closer to being paid for.

lol

 

[77mark]

put it in the bank and take advandtage of those high interest rates...gold is over valued at present.

 

[buffalokid777]

Can there be any doubt that the housing market will continue to depreciate?

Renting is definetly a good idea until the bottom is reached. Until then, personally I would invest the money and I love gold and silver for that purpose.

The problem with your theory is that NOT everyplace benefitted from the housing bubble.....

I live in Buffalo NY....a place that was UNTOUCHED by the housing bubble.........

Real estate values were NEVER inflated here and are still a good value UNLIKE many regional markets....

One of my friends fathers is a surgeon who does pacemaker operations....

His father bought a 12,000 sqf mansion here for $450,000 4 years ago.....it has an indoor pool and 10 bedrooms....what would that cost in california? 5-10x would be my best guestamation......

I bought a measley 1800 sqf house here that was assesed for 75k for 44K just 2 years ago (I don't have the resources of a heart surgeon).......and I only took out a 7 year loan to buy it........with $3000 down....my payments are $618/month....hehehe....cheaper than what I paid for rent.......

The same house in california would sell many times more........

But I didn't have to take a 30 year mortgage.....in fact I am 5 years away from owning it free and clear......and I am about to buy a 3 apartment house across the street for 75K.....that produces $1500/month in rental income.....You do the math....renters will pay the loan and taxes in less than 7 years......after its paid for.....all rental income is personal income minus taxes and repairs.....

Real Estate in California...Vegas....Florida....ETC is overpriced......but there are ALOT of other parts of the country that NEVER BENEFITTED from the housing boom and there are good investments in those places....don't trust me.....research for yourself........