2005 and 2006

[Tommy_Dolitte]

2005's +'s and -'s

+ Realized the power of giving
+ >10% annualized returns
+ 39.4% of gross saved
+ Purchased a Polar F11 and got in shape!
- Too much spent on food prior to above
- Too much spent on workout gear and Banana Republic!!

2006 Plans

+ Relocating to cheaper area of the country
+/- Contemplating renting for 6 months b/f buying

Note: I think renting will be the best move for me. I've found a 2 BR that's renting for $575. Waiting to see if the prop mgr will take my offer of a lump sum 6 month payment for a 10% reduction and waive of application fees, etc. I figure I can save the difference and be ahead of appreciation for the mortgage I would have otherwise carried. +. I just feel "better" not having a mortgage as I feel out the new job.

Advice?

Cheers!
TD

 

[Martha]

I am with you on the renting. Rents in many parts of the country have been flat for a long time or have even dropped.

 

[Mr._johngalt]

I am with you on the renting.  Rents in many parts of the country have been flat for a long time or have even dropped.

I like the "renting" idea. I my case, I think I can win big keeping
50-60% of our port. in real estate, and it provides inflation
protection. Anyway, I think renting is a must if moving to an area
you don't know extremely well.

JG

 

[soupcxan]

Watch out for pre-payment of a lease...I have thought about doing it for a discount, but there are some risks...the landlord could become insolvent or dissappear with your funds, if there is a problem with the apartment you have less leverage to get it fixed, and if you have to leave early for whatever reason it will be harder for you to get a refund. Something to consider.

 

[Helen]

I like the "renting" idea.  I my case, I think I can win big keeping
50-60% of our port. in real estate, and it provides inflation
protection.  Anyway, I think renting is a must if moving to an area
you don't know extremely well.

JG

When I first graduated from college and moved to an apartment in Boston there were two retired couples who had lived in the apt. complex for over 30 years.  By the time I moved out of the apartment, the rent had increased from $130 per month to $800 per month (the T  had extended close to the apt. complex and real estate in general was going through the roof).  That was a big lesson for me to realize that owning my own residence was a good way to beat inflation.

I bought my house 13 years ago and paid it off this summer.  I don't even pay attention to the price of real estate, it doesn't matter to me.  I now have a cheap place to live ($1,900 for property taxes plus any home improvements).

I don't own REITs or any other real estate.  I guess I'm market timing - I've been mostly in short term securities for about a year.  I think we're heading for a down turn in both housing and the stock market.

Just My Opinion,

-helen

 

[Mr._johngalt]

Watch out for pre-payment of a lease...I have thought about doing it for a discount, but there are some risks...the landlord could become insolvent or dissappear with your funds, if there is a problem with the apartment you have less leverage to get it fixed, and if you have to leave early for whatever reason it will be harder for you to get a refund. Something to consider.

Whether a renter or a landlord, and no matter which side of any contract you are on, the one who can keep the most cash in pocket the
longest has the leverage. I know of no exceptions to this.

JG