Should I Buy A House?

Over at a financial forum...

Joe asked about buying a house.  We Nattered...

Joseph, Joe, Joey, not one of dose funny sounding new age names... good thing as those who read this, this and this will attest.   

A recent survey showed that 58% of homeowners believe that their properties will not retain their value in the second half of this year.  Due to the banksters, the next MBS bubble FHA loans, overspeculation, and general public idiocy, housing prices and rents are AGAIN, at absurd and unsustainable levels. The first question is, is paying rent against your religion?  That's a spreadsheet decision based on entry costs and other factors.

Most will tell you there are three things that make or break real estate, I say there are three things to keep IN MIND when you get THE FEVER….

Location, location and location. Its relative, proximate is sometimes almost as good, 2nd tier up from the beach, third of the cost 300K vs 1M, 2 blocks to walk, how lazy are you?

Hey Kid, their not making any more of it RE that is. Next to BOTTLED WATER, the BIGGEST AND OLDEST SCAM IN THE WORLD. No they aren't making any more but look at all that is undeveloped due to WATER RIGHTS.

And when you get those rights… I've got some great swampland in Jersey/Florida that I'll sell you. Refer to #1 for who won that battle.

And I would add these five.. 

1. If you find the location and home of your dreams and NEVER plan on moving, hell or high water, and can pay CASH, then have at it because in that scenario, you can stick a fork in valuations, because your done and so are their relevance.

2. If not lucky enough for Door #1, and most younger folks aren't… then if you buy, whatever it is make sure its not only got LOCATION, but its AFFORDABLE.  Not only for your budget with contingency factors, but for RESALE potentially into a much worse market.  When you need to sell, its always nice to have PRODUCT that the majority can AFFORD.  Just like bigger, higher price isnt always better.when times get tough and capital gets scarce i.e. the shit hits the fan, depending on the demographic where you are 150K will sell like hotcakes, 250K slower, 350K not so much.  

3. P loves CASH, so do I as in NO or LOW DEBT, principal, interest, taxes required insurance and impounds, f*ck that noise.  There is nothing like being able to flip the banksters and their corporate henchmen the bird. Can't do that with the property tax man, these are feudal times.  CASH or get it PAID OFF ASAP.  

4. In my best Dickie V, UNITS BABY!!!  As a long time land lord I can attest that P gave the most sound advice you can get. OPM, other peoples money as in the renters. On site active management is recommended. Many don't want to be landlords, this will effect your demographic for resale, but when the public runs and hides, investors are always out there. Again, affordability comes into play on both the front and back end, and in the latter, the idea is plan for AFFORDABILITY as part of an EXIT STRATEGY.

5. ALWAYS have an exit strategy that plans for most all contingencies. The 4 D's are a nice start… displacement (job), divorce, death, depression (economic and spousal). That way your less likely to get blindsided on the financial end, excepting my favorite whine, I wanna go to Miami!!!.

I know you old dogs, that's MY patented and trademarked better than triple D, improved quadruple D version.  You may use with permission and licensing fees, please inquire with P's Magic 8 Ball… OUT!