If you wait to buy a house you can afford to buy in cash
Sep 18, 2018, 10:40 AM
you will have wasted so much money on rent you could have paid for the house sooner.
Debt isn't always a bad thing. As long as your money is making more than the interest you're paying, you're leveraging your debt and putting your money to work.
bought in may '08, LilGuar#1 borned in July '08 Kicked our first-ever tenants out the following day, after only 2 months...rental was empty til October SheGUAR got laid-off in August I got laid off following January declining 'values' of both houses made them both unsellable
If you sell your home, you may exclude up to $250,000 of your capital gain from tax -- or up to $500,000 for married couples. You probably know that, if you sell your home, you may exclude up to $250,000 of your capital gain from tax. For married couples filing jointly, the exclusion is $500,000.
1031 exchange. If you sell rental or investment property, you can avoid capital gains and depreciation recapture taxes by rolling the proceeds of your sale into a similar type of investment within 180 days. This like-kind exchange is called a 1031 exchange after the relevant section of the tax code.
old place. I had to hold for 3 years due to taking the goverments $8,000. Pretty sure I put it on the market a month or so after I was clear of that. I probably was too anxious to sell.
Since I used part of that $8,000 to pay off credit card balance and haven't had to pay any interest on a credit card since, I figure I came out okay.
He does say to build up a good down-payment and go with a 15 yr mortgage with payment that doesn't exceed 25% of your take-home pay, which is good advice.
His only advice that I have a real problem with is college
Sep 18, 2018, 11:10 AM
tuition.
There's simply no way someone who has no money can work "part time" and save enough money to pay tuition--probably not even at a tech school at this point.
I think its an excellent idea, but just not realistic.
I chose the cheapest college I could find. Didn't live on campus. Had a part time job that I saved every dime I possibly could. Life scholarship. Came out 6k in the hole.
Same college today has tripled their tuition since I graduated.
And even if the student does two years at local tech school
Sep 18, 2018, 11:27 AM
and transfer to a university. According to the google, the aversge tuition is $9,970 for state residents at public colleges, and $25,620 for out-of-state residents attending public universities.
I don't know any "part time" jobs that pay enough that someone may be able to save that much after living expenses to pay that. Certainly no part time jobs for someone who doesn't have a college degree. Most 18 years olds don't have that much to offer an employer.
I know a guy who actually made money with his part time
Sep 18, 2018, 12:27 PM
job while in school, and paid for his school. Granted, a lot of that money he made had to go to legal fees about a year after he graduated when he got caught. If he hadn't been stupid and called it quits after he got a 'real job', he'd be golden right now.
his advice is to do what you can afford...and that might mean working a full-time job and taking classes at night, delaying college for a couple of years, etc...
A lot of personal variables in that kind of thing, so tough to make a blanket statement. However, some of these kids coming out with a 4-year degree and massive debt levels doesn't make a lot of sense. Some of these kids are making what amounts to mortgage payment on a 1st house, but just in debt service to student loans. Set's them back 10+ yrs financially.
It's a big topic, but I sure agree with his general philosophy to minimize debt (well he is no debt at all).
I came out of Clemson with $2k in student load debt and I remember thinking that was too high at the time. Parents paid for my 1st year and I co-op'ed after that and could live in Athens co-op'ing and save enough to pay for next semester at Clemson. Of course all of that has changed with tuition being much more expensive now.
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