For all of you guys who are homeowners or newly owned

[fistofrage]

Quote: Originally Posted by 23

Yep pretty much..and while I might want something big once or twice a year, I dont do it always, so I think I'd be ok...just want the mortgage to be affordable jumping from rent to that is a scary thought...but i wont worry too much

I wouldn't worry too much. My prediction is that at some point hyper inflation will set in. Rent is going up. Interest rates are at an all time low. People who have a fixed mortgage in the 4% to low 5% in a house that they intend to live in for the next 10 years plus will be very happy that they have a fixed mortgage as the cost of rent spirals upward.

[23]

I would say rent has gone up already really. Mine is low now becuase I've been in the current building for a long time, but people pay 13-14-1500 or more for rent now

Buddy of mine had a 2 bedroom apt in santa monica and was paying 2200 a month... thats just insane

[Jonesy]

I've personally bought 5 properties in my life (sold 3) and truly it's the first one that's the scariest (obviously).

With the drop in prices in some markets and crazy low interest rates you guys have I'd be like a kid in a candy shop over there right now. Def do it man and like fist said I think if you can get a fixed rate loan now you'll be loving it in 10 years. We pay more than 5% now here in Australia on variable loans so if you can get it fixed for 5% or below I would jump at that.

Can you guys use offset accounts against your home loans in the US? Here we have an account that my wife and I pay our salaries into that is the home loan account and it brings down the principle on the loan while it's sitting there but we use that account for bills etc. It adds up to many thousands of dollars of interest saved over the life of the loan.

GL with it man. It is nerve racking and you should definitely do your due diligence and take your time but at the end of the day I think it's totally worth it especially now.

[mjb2124]

Quote: Originally Posted by 23

beyond that, its almost like its not there if you know what i mean

I know exactly what you mean. I look at the statements simply because they're mailed to me and kind of chuckle at them. It's not money that I'm touching until I'm retired so there's no sense in getting really upset over how much is lost...it'll bounce back. Plus, the way I look at it now is I'm buying into more shares at a lower price now...when it does bounce back, it will be that much higher.

[mjb2124]

Quote: Originally Posted by bigeastbumrush

The more you make; the more you spend. It's all about lifestyle.

There's a lot of truth to that...But for one person a $50,000 car might not be a lot where as for another person, it might be a huge amount. I always get annoyed when people try to keep up with the Joneses as everyone is different and everyone makes a different amount. As long as the person is happy, that's all that matters.

[bigeastbumrush]

Quote: Originally Posted by 23

I would say rent has gone up already really. Mine is low now becuase I've been in the current building for a long time, but people pay 13-14-1500 or more for rent now Buddy of mine had a 2 bedroom apt in santa monica and was paying 2200 a month... thats just insane

My monthly mortgage payment is lower than what I was paying monthly to rent.

A rule of thumb I used was to back into how much you're willing to pay per month on a mortgage (how much you can realistically handle worst case scenario if you lose your job) and then decide how much for the house you're willing to buy.

Quote: Originally Posted by mjb2124

There's a lot of truth to that...But for one person a $50,000 car might not be a lot where as for another person, it might be a huge amount. I always get annoyed when people try to keep up with the Joneses as everyone is different and everyone makes a different amount. As long as the person is happy, that's all that matters.

I was making less and doing more somehow. But the more I made...things just seemed to start caving in.

It's about managing your lifestyle. When things go wrong (someone loses a job for instance), it's not the fact that they don't have money that really stresses them out the most. It's the fact that they can't get adjusted to the lifestyle that they used to live when they had money coming in.

[23]

Jonesy..explain that account thing a bit more would ya?

..and I've seen your latest place...lol Who can argue that it hasnt worked out for you?

mjb...yes, even though some was lost, it definitely bounced back, it was just at the time, I wasnt making much as I just showed you, and I could only contribute 20 bucks per check and I just went the conservative route since they scared the mess out of me about aggressive being so riskly LOL

...now a 50k car is too much for me, but then again im not looking to do that...my GMC Yukon will be paid off in a year or two, and I'd like to take some time to just enjoy not having any car payments anyway, so Ill just keep what I have for awhile

[mjb2124]

Quote: Originally Posted by bigeastbumrush

I was making less and doing more somehow. But the more I made...things just seemed to start caving in. It's about managing your lifestyle. When things go wrong (someone loses a job for instance), it's not the fact that they don't have money that really stresses them out the most. It's the fact that they can't get adjusted to the lifestyle that they used to live when they had money coming in.

That's why it's different with everyone. I've been the same throughout...splurge a little bit here and there (want to enjoy things with life while I'm alive), but for the most part I save and invest as much as I can. 11-12 years ago when I made 1/2 to 1/4 of what I make now and my spending habits are pretty much the same. I have a nicer car/house now (car is paid off), but that's about it. It's all about setting a budget and expectations and sticking to it IMO.