BUY THE HOUSE AND PAY IT OFF

By
Real Estate Broker/Owner with People first then business! Ran Right Realty Riverside, Ca BRE LIC #636943

Anyone who is 40 and up will be quick to tell you that the last 20 years of their lives has come and gone so fast. Heck, I thought High School would never end soon enough for me but it did. At some point, you look back and think what you could have done better or more of? Time waits for no one rings very true. I have said all that to say all this.

BUY SOMETHING RIGHT NOW

Anything purchased today will put you on the road to a very pleasant and productive TWENTY YEARS (20) FROM NOW program. That's right. You buy and you have this mentality to pay off the loan that someone gave you to help you gett started. The premise is a very simple one too. You will always need a place to stay. Make this your home your permanent residence

IT WAS NORMAL TO DO SO

If you go back just a mere 50 years ago, people were buying their homes and then paying off. That was the normal thing to do. Almost everyone owned their home. It was so popular that all the 1950's TV shows depicted community long term living as standard. You grew up and knew your neighbors, police, and shop owners. Everyone had a stake in the community

IMMIGRANTS UNDERSTAND THIS

Many people coming into this country knew without being told to take their life savings or pool their funds and buy a business or a home and pay it off. Whatever happened after that was very manageable. America is structured that way

SOCIAL SECURITY WORKS BY THE WAY

You cannot qualify for Social Security unless you pay into it. So, people get a job, have deductions taken and if you keep that up for 10 years in a row, you have established a SS history that qualifies you to receive funds. Be extremely suspicious, weary and non-supportive of anyone in politics messing with this system. It was designed to compliment the American dream in natural succession

BUY THE HOUSE FIRST

Buy the home, pay it off and then when things become more simpler and less hectic, so are your bills and the cost of living. A home with a mortgage mitigated or paid off runs decently on social security income. Now Wall Street, bankers, investors and other money centered people and businesses will not like the fact that you are not spending money and taking risks...TOO BAD

Many of us have.....Been there and done that....

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Topic:
Real Estate Best Practices
Location:
California
Tags:
cost of living
equity
immigrants
neighborhoods
american dream
social security
mortgages
paying off
investing
naggar
buying a home

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Rainer
131,961
Laura Murray
Weichert - Silver Spring, MD
Search Montgomery Co., MD for homes www.MDRealEstateOnline.com

Personally I am a believer in smart debt.  I believe that for some folks (folks who can mange money)  always having a mortgage is a good thing because of the tax deductions, etc.  You would be better off putting money toward something else that increases in value, rather than paying off a mortgage.

July 27, 2012 11:16 AM #1
Rainmaker
1,236,959
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Laura...I see the sense in your comment and it holds...However, we just had that thinking become mainstream and it caused the crash as we know it right now. You see there are (or was) trillions of dollars of equity sitting in people homes and a campaign to tap into that money was successfully launched and for a brief period, the American dream went into warp drive. Jet-skis, fur coats, vacations, second homes, jewelry, and living at large is all fine until it fails..WHOA. Some of those chickens we hear about that come home to roost landed with a BOOM...Smart Debt for those that can handle it..YES..thank u Laura

July 27, 2012 11:28 AM #2
Ambassador
1,326,557
Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

Richie,

The fixed aspect of the mortgage payment makes this an easy decision. 20 years from now your salary will be vastly greater, while the principle and interest on your loan didn't change. I wish I could have done that with my weight.

Rich

July 27, 2012 12:24 PM #3
Rainmaker
1,236,959
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Richie to Rich...It works with weight? I am in too...lol

July 27, 2012 12:42 PM #4
Rainmaker
341,459
Elizabeth Bolton
RE/MAX Destiny Real Estate Cambridge, MA - Cambridge, MA
Cambridge MA Realtor

Hi Richie ~ I am so with you on this.  It's absolutely true - the thirty year mortgage is a modern invention that would have boggled the minds of people in earlier generations. My dream is to pay off my mortagages and actually *own* real estate. You can't beat that security.  John Cummuta is one of my favorite financial gurus who advocates paying off all debt including your mortgage - I listen to his tapes over and over as I drive.

Liz

July 27, 2012 07:23 PM #5
Ambassador
1,088,859
Bryan Robertson
Catarra Real Estate, Inc - Los Altos, CA
Broker, Author, Speaker

I had to go back to renting after my divorce and remarriage.  When we do buy, it'll be with a 30 year mortgage that we pay down as fast as possible - ideally 20 years or less.  While I plan to work till I drop, out of want, not need, getting the mortgage paid off gives a substantial peace of mind.

July 28, 2012 07:18 AM #6
Rainmaker
1,236,959
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Hello there Elizabeth...It a capitalistic society, this would be considered dangerous to the master plan of spending and keeping money traveling. Money sitting would hurt the economy. However, it wouldn't hurt the person who is debt free

 

Hello Bryan...personally speaking, it is satisfying to start something and then finish it whatever that maybe. On something as big a s a mortgage, the satisfaction is enormous. I say go for it....best dear boy

July 28, 2012 07:36 AM #7
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