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the Fet
climber
Tu-Tok-A-Nu-La
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Sep 30, 2016 - 02:57pm PT
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Many studies have shown it only keeps pace with inflation except in bubbles.
Those studies were probably for home ownership in general. But there is no single home market. There are hundreds of markets in the US. And the cycles are vary from place to place.
It's all about where and when you buy.
A house in the south bay is not a good idea at this time if you are investing money, but as your primary residence there's a lot of factors that make it more worthwhile. That's not even getting into the emotional factors of owning your own home.
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Reeotch
climber
4 Corners Area
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Sep 30, 2016 - 02:59pm PT
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Ho man . . .
If you got a mortgage, you're the one whose owned
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zBrown
Ice climber
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Sep 30, 2016 - 03:05pm PT
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Don't forget that when your house appreciates by $500K, since you're married that's a $500K gain tax free when you sell.
What is your marginal tax rate?
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the Fet
climber
Tu-Tok-A-Nu-La
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Sep 30, 2016 - 03:08pm PT
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Money is so cheap to borrow on a primary residence right now (3.5%) you'll end up with good return (mostly on other people's money) in many parts of the country, plus the other benefits of home ownership.
Inflation lately has been around 1% but long term has been 3%. Either way the cost to borrow is very low.
The main negatives are it ties you down and can suck up your time.
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Jaybro
Social climber
Wolf City, Wyoming
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Sep 30, 2016 - 04:39pm PT
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Congrats
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eeyonkee
Trad climber
Golden, CO
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Sep 30, 2016 - 06:53pm PT
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Last time I was in San Jose was probably 1978. I was with my climbing partner Al Chase and his friend Vic, who lived in San Jose. Al was from Waterford, Maine. We were on a brief respite from the Valley. Al later died on Denali in 1980 -- actually he just never returned. San Jose was completely different back then of course. It was a lot closer to the Dionne Warwick song.
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Majid_S
Mountain climber
Karkoekstan
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Sep 30, 2016 - 09:12pm PT
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San Jose is now called LA
Traffic is so bad I wish I went back to LA
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Bushman
climber
The state of quantum flux
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Nice job Bluering, good on you and your investment, congrats!!
My wife and I bought our first home in suburbia near Sacramento when I was only 30 days sober, no regrets. Sold 13 years later for a profit and got out of town. 14 years now since the purchase of a rural ranch house with 3 acres and a view. It's 27 years later and I'm still sober, and my wife is finally retiring from her stressful state job in January.
Buying a home is really just buying a mortgage, but you control the money (the debt) as long as you plan ahead and are responsible. That's all the banks really do anyway. Keep a savings and cash for unexpected home repairs and improvements. My own retirement is several years off but on the horizon now.
However you do it, you're not buying a landlord a home or maintaining their investment for them anymore like you used to. There is a certain freedom to that.
If all hell breaks loose just consider, we never had anything to begin with and we can't take it with us when we go.
-bushman
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donini
Trad climber
Ouray, Colorado
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Congrats Bluering!
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clinker
Trad climber
Santa Cruz, California
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It used to be a nice neighborhood. Now, it's a little shithole.
I thought you were Polish not American Indian.
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SC seagoat
Trad climber
Santa Cruz, Moab, A sailboat, or some time zone
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So, a couple months ago, two or three families moved to the house across the street (a single family house).
Which house? You only have them all over the world!!! ;)
Susan
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