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- - Home equity (http://goldismoney.info/forums/showthread.php?t=37861)

Nuggethunter | 06-04-2006 06:16 PM
Home equity Do any of You folk think much of sitting on 100K$ of home equity and letting it rest there? That money will eventually be stolen by devaluation. Some peoples homes/land are paid off. Some arent. For the people that owe on there home they also havent fully prepped for the future. I have lotsa of prepping to do. Owe 80K$ on the place here and need 40K$ more to fully be PREPARED and safe . When I pay this place off , Ill be living on a place that I could sell for 180K$. Sounds expensive to me. To much money in ONE basket. I think living quarters/ housing is too darn rich. Maybe renting is the way?

Ponce Cuba | 06-04-2006 06:22 PM
Re: Home equity But for taxes this land is mine rain , shine or snow, a person without a home is a person without roots. "If you don't hold it, you don't own it"... Ponce

Tn...Andy | 06-04-2006 06:33 PM
Re: Home equity "The borrower ( or renter ) is slave to the lender". That should pretty much say it all.

Alric | 06-04-2006 07:19 PM
Re: Home equity Letting it sit there? People think equity is money they have saved up in there house. Equity is only what you payed back on your loan so far. Its not stolen by devaluation, because you never had it in the first place. Say you buy a 200k house and you have 100k equity. Thats 100k paided against the 200k. If you take the 100k out you still owe 200k. And the value of the house has nothing to do with it. The only time equity is actually worth anything is if you sell your house for more than the remaining balance on the loan. A ton of people consider equity as money but their assuming they can sell at the price they think the house is worth. Which may or may not be true. Since everyone has been complaining for years about the housing bouble, maybe they should stop assuming that.

Nuggethunter | 06-04-2006 08:17 PM
Re: Home equity For You folks that have a beautiful spread in the tall timber , what about us in the country but still owe? I just hate owein!!! Silver, Gold, chikiens, 2 dogs, 2 cats, open country, TIMBER, gold mining in my neighborhood , no debt, and lotsa preps. Thats what Im after , and tryin to figure it out , and I will, thanks to GIM. Im 46 and getting late ah !

REV127 | 06-04-2006 10:59 PM
Re: Home equity Well, you can sell and relocate somewhere land is much cheaper, $1,000/acre can still be had, and set up an operation you can work from home to make some money. Otherwise I'd tough it out, especially if there is no demand feature on your mortgage, inflation is a more likely scenario than deflation for the foreseeable future. Your silver and gold will go very far towards paying off your mortgage under these conditions, the way I do it is I put the money I'd put into a direct extra mortgage payment into silver instead, that way when silver appreciates respectably, say 30%, I can cash out and make an extra mortgage payment that comes complete with 30% more frn's free! Rent is dumb unless you live in some weird area where the monthly payment is absolutely peanuts and you have the coolest libertarian landlord in the world. Otherwise you're throwing money down a big hole never to be seen again all the while opening yourself to be kicked out of your home on short notice, or else having people entering your home for whatever reason they feel is necessary. When your lease is up you have nothing to show for it but a note saying get the heck out of my apartment. When you pay off a mortgage you have a real asset of actual worth, regardless of whether it fluctuates with the market. I've been homeless, it sucks, don't put yourself in that position. There is some kind of weird anti-real estate backlash in the PM community that is far overstated, as will be shown in the coming years. As far as needing $40,000 to be fully prepped, I guess that depends on what your expectations are, but you can be completely off grid, well armed and have years' worth of food socked away for $10,000, or even less. I'd suggest finding simpler sollutions, and doing as much of it yourself as possible.

Ghost Recon | 06-04-2006 11:08 PM
Re: Home equity Even though my home is paid off, it's still cheaper for me to rent an apartment. So my home will be up for sale soon. I'll move into an apartment for a while. I'm hoping that between my business and contracting that I can work 6 or 7 days a week. I'll play it by ear. I wonder how much longer it's all going to hold together. Eventually, I'll buy another house but it will be much smaller than this one and with lower taxes.

REV127 | 06-04-2006 11:27 PM
Re: Home equity Utilities and property taxes must be real killers where you live. Do you have a homeowner's association demanding fees, too? Where I am rent is quite nearly what a mortgage payment is and you'd have to be in a high cost luxory apartment to avoid not having the scum of the earth as your neighbors, whereas a lower income bracket single family home neighborhood will be nicer in terms of peace, quiet and cleanliness. If it's not too personal could you tell me the general area? I've got a feeling this whole bubble situation will prove to be highly regional and very conditional and I'm trying to gather what info I can on how different areas are effected.

HiHoSilver64 | 06-05-2006 01:38 AM
Re: Home equity Quote:
Originally Posted by REV127 "...... Rent is dumb unless you live in some weird area where the monthly payment is absolutely peanuts and you have the coolest libertarian landlord in the world. Otherwise you're throwing money down a big hole never to be seen again....."
I actually sold my house last year and piled all the proceeds into silver. :smokin: In my area renting is cheaper than a mortgage. since I PAID almost the entire purchaser price of my house in interest in the first 10 years :banghead: I don't feel like a dumb @$$ for renting. :haha: So what if I'm blowing my rent every month. I'd be blowing it on mortgage payment now with banker interest payments on a house that would likely go down in USD value 20%-30% so if I had to sell in 2 years I'd owe far more than what the house is worth. When I move there is no selling hassle and I wash my hands of the deal and clean the carpets. I have a decent landlord and we live in a fairly desirable area all things considered. I'm buying some time waiting for more favorable buying conditions for a house & property in an area I actually want and view as desirable. What I view as desirable is out of my current price range however, once silver hits the $40-50 area a portion will be cashed out for a down payment. As the price goes past $80+ a portion will be cashed out and the mortgage will be paid off. Sure housing my go down only 20-30% but the dollar will hyper inflate. Silver will go north and more than make up for lost traction. So . . . if you live in an area that you like then stay. If you want to take out a home equity loan for $$$ invest some in silver then use a portion for some preps this might work pretty well. Depends on the situation and your ability to repay. Consider all the variables good & bad. Only use a conservative estimate on the increased value of PM's say 20% to $40 a year so you don't get really wild eyed on so-called gains. Borrowing today's money and paying back with tomorrow's devalued money is great as long as you can aggressively grow the holdings in US dollars with PM's. YMMV:wavey:

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