Its just me and my husband.
We can't have children and we don't want any.
We have one credit card at $14,000 and one car note debt at $19,000.
Do you think it makes sense to have a mortgage if we don't plan on leaving it to anyone when we die?? We travel alot and unpredictable repair things in a home is not worth it.
What is your feedback on this?
2007-07-09 08:48:11 · 7 answers · asked by CWeb44 1 in Business & Finance ➔ Renting & Real Estate
I think you have far too much debt to consider buying a home at this point, depending on your income of course. As far as investments are concerned, you'd be better off taking any extra money you have available and putting it toward lowering your debt, first, and second putting it into mutual funds or medium-risk stocks. The average return on a home (after the first five years of ownership) is 6%; in otherwords, you can expect to make a 6% profit on your home should you eventually decide to sell. This of course varies by the area and market in which you plan to buy. If, however, you were to invest your money, you could make a "profit" of 8% or more, depending on the funds and stocks you choose and how aggressively you trade.
I think most people have a flawed notion that real estate is the smartest investment. In most markets, it's not. And if you already have the amount of consumer debt you do, your first priority should be paying that off - not taking on more.
2007-07-09 09:17:19 · answer #1 · answered by Courtney 3 · 0⤊ 0⤋
I say buy the home. You will get the tax credit for the interest while you have the mortgage, your payment will be more or less fixed across 30 years while rental will continue to go up. You will have the ability to sell it, or take out the equity to finance your other needs. Tons of advantages to buying a home. You might consider a condo that generally have on site maintenance available.
2007-07-09 16:35:04 · answer #2 · answered by flamingojohn 4 · 1⤊ 0⤋
You need to look into your local market and find out how homes in your area are appreciating. If they are then investing into a home definately makes sense. Also, when you get older you can get whats called a reverse mortgage. A reverse mortgage pays you monthly, and the bank takes ownership of the home when you die. It's a great way to get added income when you retire.
2007-07-09 15:53:43 · answer #3 · answered by Joshua C 1 · 0⤊ 0⤋
Depends on how stationary your job is. I say no. It is not worth it. It is more fun and exciting to be mobile, that way you can bounce around easier. unless you want to staret collecting real estate as investments to rent them out and create income, that is another story.
But when you pay rent, all that money goes out and you have nothing to show for it. You are paying your landlords' mortgages...
2007-07-09 15:52:45 · answer #4 · answered by Anonymous · 0⤊ 0⤋
what are you asking ? are you asking if it is worth buying a house ? then I would definately say yes ,because what will you have when you are elderly ? at least you will have a home . so go ahead and buy a house . it is worth it in the long run . good luck .
2007-07-09 15:52:22 · answer #5 · answered by Kate T. 7 · 0⤊ 0⤋
I personally believe that the less debt you have the better off you are.
2007-07-09 15:52:58 · answer #6 · answered by Daryl C 1 · 0⤊ 0⤋
Try going to this site, they have lots of information about this sort of stuff.
2007-07-09 16:23:32 · answer #7 · answered by Anonymous · 0⤊ 0⤋