Should I use my home as an investment?

[Clint]

I still don’t have the final word on whether or not I have a job even though I have little doubt that it will happen. Assuming it does happen, we will have to move. It’s a good thing because it will put us closer to our children and grandchildren.

When we move we will no doubt buy a home there. I’m thinking I should take all the equity out of the sale of this house and move it into the new one. I also think I’ll buy all the house I can possibly afford. I see real estate values increasing for as long as we have a viable economy. I’ll probably want to retire in seven or eight years and I’m thinking that would be a good time to downsize, take all the equity out of the house and use it to pay cash for something a little smaller.

I like the idea of enjoying my investment if at all possible and this seems to be a way to do it. Any thoughts?

[Tombstone]

Originally Posted by Clint

I still don’t have the final word on whether or not I have a job even though I have little doubt that it will happen. Assuming it does happen, we will have to move. It’s a good thing because it will put us closer to our children and grandchildren.

When we move we will no doubt buy a home there. I’m thinking I should take all the equity out of the sale of this house and move it into the new one. I also think I’ll buy all the house I can possibly afford. I see real estate values increasing for as long as we have a viable economy. I’ll probably want to retire in seven or eight years and I’m thinking that would be a good time to downsize, take all the equity out of the house and use it to pay cash for something a little smaller.

I like the idea of enjoying my investment if at all possible and this seems to be a way to do it. Any thoughts?

Sounds like a good idea to me. The caveat though, is you have to be careful where you buy. If you are in a rust-belt market - then I'd say no. I have yet to meet a person who purchased a nice home and lived in it for more than 8 or so years that didn't have a great equity experience.

And...if your home loses value...your equity investments will probably be in pretty poor shape too!

[Clint]

Originally Posted by Tombstone

Sounds like a good idea to me. The caveat though, is you have to be careful where you buy. If you are in a rust-belt market - then I'd say no. I have yet to meet a person who purchased a nice home and lived in it for more than 8 or so years that didn't have a great equity experience.

And...if your home loses value...your equity investments will probably be in pretty poor shape too!

We will be moving from a white hot real estate market to a red hot one that is getting hotter. We have learned our lesson the hard way when it comes to the rust belt. The house we will be selling is in an upscale neighborhood and we are at the bottom of the scale. I think that will allow us to leverage a little with the equity we will be moving.

Thanks Tombstone.

[randall]

Hi there, randall here - again,
I only wish I could use my home the way I want but in Scotland there is a "Married Womens' Act" - or something like that - and even although only my name is on the title deeds I cannot do one thing with this little house of mine unless my wife agrees to it.
AND SHE WONT!
Through no real fault of our own except choosing the wrong parents and being born either ten years too early or ten years too late in the wrong part of the country, we have ended up with paltry, little pensions including the governments' one and had to re-mortgage to do repairs to the roof and other things shortly after stopping work.
But my wife really loves her neighbours and says that they are worth more than money.
She will not even agre to equity release which would clear the mortgage and pay off our debts and still leave us a little for luxuries.
Solicitors tell me that it is all too common a complaint of men in Scotland who have the houses in their names only.
IF, if, if only???????
Roll over Rudyard Kipling.
God bless all.
randall

Keep the faith baby - spread it gently.

Ha! Ha! Always a delight Randall

[Clint]

Originally Posted by randall

Hi there, randall here - again,
I only wish I could use my home the way I want but in Scotland there is a "Married Womens' Act" - or something like that - and even although only my name is on the title deeds I cannot do one thing with this little house of mine unless my wife agrees to it.
AND SHE WONT!
Through no real fault of our own except choosing the wrong parents and being born either ten years too early or ten years too late in the wrong part of the country, we have ended up with paltry, little pensions including the governments' one and had to re-mortgage to do repairs to the roof and other things shortly after stopping work.
But my wife really loves her neighbours and says that they are worth more than money.
She will not even agre to equity release which would clear the mortgage and pay off our debts and still leave us a little for luxuries.
Solicitors tell me that it is all too common a complaint of men in Scotland who have the houses in their names only.
IF, if, if only???????
Roll over Rudyard Kipling.
God bless all.
randall

Keep the faith baby - spread it gently.

Well, it sounds like you have a bit of a problem on one hand and the enjoyment of stability on the other. In the final analysis you may be the one who comes out ahead.

God bless you too.

[Accountable]

Sounds like you have a decent plan to me, Clint. Pointers I've read:
* Keep an emergency fund set aside
* Buy the worst house in the best neighborhood
* Get a house inspector
* Take as much or more care picking the house inspector as you take picking the house.
* Never refuse cyber-friends refuge if they happen to drop by unannounced (okay, I may have made that one up. )

[Clint]

Originally Posted by Accountable

Sounds like you have a decent plan to me, Clint. Pointers I've read:
* Keep an emergency fund set aside
* Buy the worst house in the best neighborhood
* Get a house inspector
* Take as much or more care picking the house inspector as you take picking the house.
* Never refuse cyber-friends refuge if they happen to drop by unannounced (okay, I may have made that one up. )

Sounds like good advice and you're welcome any time.

[Lon]

Originally Posted by Clint

I still don’t have the final word on whether or not I have a job even though I have little doubt that it will happen. Assuming it does happen, we will have to move. It’s a good thing because it will put us closer to our children and grandchildren.

When we move we will no doubt buy a home there. I’m thinking I should take all the equity out of the sale of this house and move it into the new one. I also think I’ll buy all the house I can possibly afford. I see real estate values increasing for as long as we have a viable economy. I’ll probably want to retire in seven or eight years and I’m thinking that would be a good time to downsize, take all the equity out of the house and use it to pay cash for something a little smaller.

I like the idea of enjoying my investment if at all possible and this seems to be a way to do it. Any thoughts?

Transferring the equity from your present home into another home sounds like a good idea Clint, as long as you sell well and buy well. Having a paid for home when you retire in seven or eight years is also a smart idea.

[Clint]

Originally Posted by Lon

Transferring the equity from your present home into another home sounds like a good idea Clint, as long as you sell well and buy well. Having a paid for home when you retire in seven or eight years is also a smart idea.

Thank you Lon.