I like my DH's attitude, "they aren't making any more land, this is all there is ever going to be, so you can't go wrong owning it".
We didn't want to keep our big house when we retired, so we sold it and just kept most of the property along with our big garage. That way, we always have storage, and a place for the kids and us to meet up for holidays, camping, etc.
WTTCS wrote: As I read the below, it occured to me that we on this very forum have had many discussions about selling, renting, or not fulltiming, due to home equity and the values of same.
You read what I read and tell me who the smart one are.
"In fact, Americans' equity in their homes - usually their single biggest asset - now has dropped to the lowest level on ****record in figures going back to the end of World War II. Homeowners' portion of equity fell to 46.2 percent, which means the amount of debt tied up in their homes exceeds the equity they have built up."
Yep keep that albatross.
This poster simply does not understand what he (or she) read... This simply says that Americans home "equity" (the value of their property over what they owe) is at it's lowest level on record. I believe it... and I want to thank all the citizens of this fine country who borrowed heavily in the equity in their homes to finance second homes, trips to europe, lavish vacations, Class A diesel pushers, etc... this is the reason "equity is at it's lowest point on record, not because house values have dropped a bit in the past two years.
The equity in my home has not been seriously impacted by the downturn in real estate sales (in fact, the mean average selling price around the lake where I live is up 8% year on year. However, the time on market has increased by 12%). However, my neighbor, who bought his second home with "equity" he took from his first home (thereby reducing his home equity to the "lowest level on record") is now in danger of losing both homes.
It is important to understand the context of what we read. The downturn in the housing market is a pretty minor correction; spending your "equity" on other things is a major correction.
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First off there is no reason you have to buy a house if you stop FTing.
It would be unwise IMO to do something like this without some sort of an exit strategy, either being able to rent or own a home / apartment or go to assisted living depending on age / condition.
Otherwise it really doesn't matter.
The problem is home equity was never really meant to be a piggy bank people would rape to buy goodies they otherwise couldn't afford. Most of the US population is now seeing the effects of pissing away all their assets and mostly why consumer sentiment is so poor. They have run out of credit and have to stop spending and pay off the bills for all the junk they bought the past 5 or so years.
* This post was
edited 07/02/08 02:43pm by an administrator/moderator *
If you sell the house, save a good portion of your proceeds to invest cautiously and live off later. It is usually cheaper /mo. to rent than buy (in the early stages of ownership) and it makes sense to rent in the later years of your life - no hassle, no repair costs, no prop taxes, etc.
OTOH, if you are young, have a decent, stable income, buy a house. Most people have made the bulk of their net worth from appreciation from their house or investment real estate, properly leveraged, properly managed. Land is still limited (especially buildable land), most areas are not building enough homes to keep up w/ demand over the long run, so anyone w/ a long time frame will likely continue to build equity.
But if you are retired, go ENJOY the fruits of your labor! You are not required to leave it to your kids! Sell, hit the road, and rent later.
2006 Duramax Chev dually.
2008 Mobile Suites TKSB Working toward "long timing".
Gale Hawkins wrote: This subject on another thread discussed the danger of going FT and not keeping your house or investing the money so you can repurchase if you do not die while still on the road FT. Selling one's home and burning the money for an RV or living expenses may be a huge mistake for most.
Guess I am of a different opinion on some of these things.
1- sell the house
2- living in your RV is generally less expensive than
3- house payments, taxes, water, sewer, garbage, insurance, utilities
4- take the money and stash it in a safe place
5- until you have a desire, need, or want to use it for
6- enjoy your life in some resemblence of "freedom"
When you become infirm it's fairly easy to rent or lease a nice maintained apartment or condo and likely the payments will be far below what you were paying for the house.
You may even be able to continue RV'ing at some level but if not the time is then to sell the motorhome.
God Bless
Bill
Bill W. Trammell
Wife - Judy
2001 Monaco Dynasty Chancellor
2008 Malibu 2LT toad
Our house is paid for. We are readying it for sale. The market here is still pretty good. We are saving for DP at the same time. After the house sells, we plan on buying a townhouse out west and leasing it out until we want to live in it. Leftover money will either go into savings or towards the DP if we still need more $$.
First of all these type of reports are not correct.
They are based on comparison of what these homes where worth at the PEAK of the boom. Which is FAR MORE than what they should have been worth, these were 'inflated' prices.
So comparing where the market is now compared to the height of the boom is not an actual figure for how far down the market has gone or equity lost.
Please show me a home that was purchased in 1990 that when it sold today it lost 50% of it's value.
That is UNLESS you are an owner that used your home as a piggy bank.
For them.....too bad....too sad....but it's your own fault.
* This post was
edited 06/07/08 12:29pm by rockhillmanor *
31 ft Four Winds
Chevy Tracker 4x4 Blue Ox We must be willing to get rid of the life we've planned,
so as to have the life that is waiting for us.
We bought and sold three homes after 1990! Made money on 2, barely broke even on 1. Timing is everything. And we sold the last one in 2005 a year before we went fulltiming at the peak of the market for that area. So for people who had to move often for jobs (we moved 9 times in 40 years) a 20-year appreciation isn't possible. You just hope for the best and realize that you work with what you have and make the best of it.
Barb
Barb & Dave - full-timing Traveling catpanions Kit (age 18) and Shadow (age 11) Figment II (2002 Alpine 36 MDDS) Mischief (2004 Subaru Forester Toad) FMCA - F337834, SKP #90761 http://homepage.mac.com/barbaraok/ Our blog
The RV is easier to upkeep than a house if your old. If you need help in an RV you will likely need the same care in a sticks and bricks. It doesn't really matter......wheels or no wheels. It's a matter of preference, how much living space do YOU NEED or how much do you WANT?
I am 37 I am selling my sticks and bricks and full timing, no plans at ever owning another HOUSE. That may change again at some point down the road but doubtful. I looked at life in a sticks and bricks as waiting to die, since it is damned near impossible to maintain a house and work and ENJOY life all at the same time. For me my idea of joy has nothing to do with mowing grass, replacement windows, sheetrock, paint, etc etc etc that goes along with owning a home. I don't see not being able to enjoy life as being an issue with an RV.
I still feel it comes down to what you want and what you need, most of these large homes are filled with a bunch of Junk no one really needs.Especially if they don't have a house......lol.
Others with various silver spoons may feel differently. The Rv and the trailor and the motorcycles might not be much but at least they are mine and the bank does not dictate much to me at all, nor does any "career". I chuckle inside when I pass some of these over the top houses and cars that are financed to the gills thinking that guy has no idea what is going to happen to his entire life when his job goes to China. He will wish he was in an RV when that debt note doesn't work for him anymore. It's even funnier when I see the owners and they are my age....hope they inherited it because its very likely the bank owns his house not him.
It's simple math. There is more debt than there is money to pay off the debt....we wonder why our economy is in big trouble?
* This post was
edited 06/07/08 10:40pm by scottmanesis *
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