Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (26) | Ignore Thread Prev | Next
Author: brewer12345 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5069  
Subject: Re: Condo down payment source (long) Date: 10/27/2003 11:12 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 7
Lots of good stuff so far, but I'll add my $.02:

BF is high. The real estate market has all the hallmarks of a bubble in many areas, and he is playing right into it. Let me guess: he's never seen a down RE market, right? If so, then in his experence you cannot loose on RE, so why not buy the max. It doesn't work that way. RE markets can and do go down, and the leverage associated with RE can get you killed. If you have relatively little (or negative) net worth, then you can afford to speculate on your home even less than someone well-off. If I lose $50k on my home it will not be pleasant, but it won't materially affect my standard of living or ability to retire when I please. What would it mean to you? To BF? To the two of you as a young married couple with student loans out the wazoo and maybe some kids?

Keep your IRA and keep it separate after you marry. So long as things are going well in your relationship, nbody should be hurt by that. If things aren't going well, then you will really need separate assets. A la student should understand wanting contracts/legal structures in place to protect yourself without taking it personally.

Lastly, CK already pointed this, out, but it should be underscored: RE is extremely illiquid, especially when you live in it. If you think the housing market is over-valued and due for a fall, you typically can't do anything about it because it would entail moving out and paying the ~7% transaction costs. If you think that a stock is pricy, you can sel it for $12 or so. That makes all the diference in the world sometimes.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (26) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Value Hounds

Ubiquiti Analysis
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement