I paid cash for the truck and a house. Everything is dependent upon a persons financial situation!! Currently it is very difficult to earn a 3% return on an investment without risk. Plus, if the 3% is not capital gains kept for one year, the return is taxed at a persons income tax rate. I am holding much more cash than I want and the only thing to me that is somewhat appealing is the home rental market, but I’ve done that before and although I made money, it was a headache. I’m all ears, please provide suggestions, other than the current stock market?
What did ya pay…..MSRP, ADM Poll
- Thread starter Floyd554
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Also, I should not have written that about Cinisi, too much bourbon, two jerks don’t make it right! Regardles, prices are going up again!
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Ford says chip shortage will force it to halt or cut production at 8 plants: reports
Difficulties in obtaining semiconductor chips will prompt Ford Motor to temporarily halt or scale back production at eight plants in North America, the company said Friday, according to reports.
xxxMannimalxxx
Active Member
Wait - you don't care if someone sells their wife on the black market but YOU DO care about the same person spending $10k ADM?
Awesome. Let cooler heads prevail!Also, I should not have written that about Cinisi, too much bourbon, two jerks don’t make it right! Regardles, prices are going up again!
Ford says chip shortage will force it to halt or cut production at 8 plants: reports
Difficulties in obtaining semiconductor chips will prompt Ford Motor to temporarily halt or scale back production at eight plants in North America, the company said Friday, according to reports.
GCATX
King Dingaling
We're on the same page, sorta. We have 2 rental houses, picked the 2nd one up last Summer, new build, so hopefully no issues for a while. The other one is about 15 years old, we have cheap management company handle it for us, so we are hands off. Would like to pick up 2 more eventually, mortgage locked in while inflation goes through the roof. Rents will have to go up to keep up with inflation, but we still owe the same amount, mostly, and property values will follow inflation.
Paying cash for a new Raptor would be 20% down on a decent rental house, maybe 2 depending on location.
I agree with everything you indicated, but property values have to level off after interest rates climb……less people can afford to buy. I am on Zillow everyday thinking about picking up a rental. This is the first time since 1991 I haven’t been heavily invested in property, or stocks, but there comes a time to stop building wealth to spend it, not sure I’m there yet, but maybe. Also, with a rental a positive return does not immediately occur, all purchase expenses must be realized before a positive cash flow starts. Back to Zillow!
GCATX
King Dingaling
Assuming interest rates rise, which they should, my thoughts are that if rates going up can slow inflation, you might be right. If they can't appreciably slow inflation, what I believe given Brandon's helicopter money BS, then home values will continue to rise along with rents.
Granted, in my area there is a severe shortage of single family homes, and they won't catch up for several years, or the foreseeable future. In 2008 while much of the real estate markets in the country took a big hit, we just went flat for a couple years. And I think the home loan rates were probably 7-9%, just guessing.
In general, I think having a pile of money in the bank is risky right now. Not that it will go away, but it's worth less and less every month. There is no denying that.
But, everyone's financial situation is different, you sound like your are pretty set. I feel like I'm still on the road, just decided I'm okay with a little more risk with everything so volitile. If things truly crash to the bottom, we'll all be in the same boat anyway. You know, the boat that all our guns fell out of.
I 100% agree with everything you wrote!!!! However, the only thing you forgot to factor is age. If I were 30,40 or even 50, my risk tolerance would be different. Unfortunately I am 64, which brings other things to consider that involve less risk. Also, liquidity comes into play. Currently SCHD, an ETF, pays about 3%. If a person bought 500k of SCHD, after taxes they should NET about $1k per month with the option to liquefy if needed. Conversely RE normally requires an Agent and 6% commission. If you’re 30-40, you are smarter than most, but remember you will not be 30-40 forever…….unfortunately
CINISI
Full Access Member
You’re STILL here? You mean too much doshhh.Also, I should not have written that about Cinisi, too much bourbon, two jerks don’t make it right! Regardles, prices are going up again!
Ford says chip shortage will force it to halt or cut production at 8 plants: reports
Difficulties in obtaining semiconductor chips will prompt Ford Motor to temporarily halt or scale back production at eight plants in North America, the company said Friday, according to reports.
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