OK so my boat is a pile. Now I can either remove my tanks put in ss tanks, get my tanks repaired do some fiberglass work to the floor the bulkhead n the dash and keep it. But I have my eye on a really nice hull that I can get but I'm saving for a house and I don't want to spend my money on it but I want to boat I missed hanging out with everybody at the lake this year and the river what would you guys do repair what you have or purchase a new home or new float. I know this sounds like a no-brainer man I want this boat


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the river and lake is not going any where and you can always find a good deal if not better after you get situated in the new pad. Have patience and think long term security not short term happiness.

...the pic I forgot to add to the last post.


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Get the damn house.  I've been trying to get out of my starter home now for two years. We've made offers on three houses and we get out bid by just a few thousand dollars each time.

Screw the toys until the house thing is done. The economy is about to shit all over you.  Get a low mortgage rate, even of you have to buy it down with points.

It's more fun owning a boat if you don't have to worry about a home.

JMO.

Get the house.  I have s pretty nice Sanger Super jet if you get to that point.


GT

What GT said! ^^^^^^


I love my boat but would sell it in a heart beat for the right house.

. If your boat doesn't run you have a whole different outlook.  Ford guys they are just a little different lol. The price of a used hull should not effect your house deal much. When you been through what I have you learn tomorrow is never promised. Enjoy life and live everyday to the fullest. Owning a home for most of is just a difference in who we send the payment to.  I have a house now and would feel no different if I was renting it. Well I would have called the owner when the A/C went out instead of my billfold taking the hit. JMO


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I guess it's all about how close you are to getting a home and your perspective.

I couldn't rent a house of I had too. I wouldn't be able to afford it.

With a 2.75% mortgage,  you would be insane to not purchase a home if you can.  That's as close to free money as you can get.

To put it in perspective,  interest rates just ten years ago were 10%.

Keep the $3000 in your billfold (thanks Jim) and find the right house, make an offer and know you have that $3k in case some goofy shit that always happens,  happens.

It's nearly November,  gives you plenty of time this winter to dick around with the boat.


JMHO.

Here's what I'm trying to buy right now.... Let me just say it. "Screw that boat". Lol

GT

I'm 3-6 months away I have 17k in home fund am in last stage of working on my credit. But for some reason I'm in love with this boat 4K no moto no pump nice interior bottom looks good so I'm struggling to stay on my course if I miss another summer I'll go crazy I spent just over 1000 renting boats this summer n missed all meets.

Also I'm about to hit my slow season for work next three months and only make 1/3 or half my usual checks

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So many indicators saying now that the economy worldwide is about to tank, that it is hard to ignore the probability.  There is more cash sitting on the sidelines just waiting to see what happens, than anytime in the last 100 years.  Any house you buy in the future may very well be heavily discounted over its price today.  As a current owner of 3 houses, I can tell you that ownership aint all sunshine and smooth water.  Termites, tile, and taxes are all really expensive for owners but not renters.

No,  I totally disagree.

Look at what happened to rents since 2008. My neighbor rented their 4 bedroom tract home for $3900 a month. The people renting it told me that that was a deal.

You could have rented the same home in 2007 for $1400/mo..

If you get in now,  with a low interest rate,  the right home,  you will be sitting pretty if/when the economy does poo poo.

Of course it depends on your ability to stay employed.

In my area,  homes gained almost 40% in value, the thing is,  there's nothing on the market,  and when there is,  it's multiple offers and a two week close. Insane.

I stand to clear over $300k on the sale of my home. I have to reinvest it. This house has turned out to be the best investment I had,  my 401 didn't do a damn thing for me.

Keep in mind I had to work my ass off to keep it. But now that the smoke is cleared I'm set for life. Buy my forever home and a fifteen year fixed mortgage,  my house will be paid off before I retire. No rent,  no mortgage,  just death and taxes. Lol

You never get rent money back,  replacing the air onditioning only takes place every 20 years. Rent is every month and they won't go down.  Just up.

Owning more than one home these days can pay off, but the risk is big, I looked at just buying a second home,  but by the time you factor in all the repeat expenses,  it's pretty close to a break even. I think we figured out we would clear about $370 a month looking at five years.  Not worth the risk. Rather cash out and by a house I wouldn't mind dying in. . As morbid as that sounds.

If the economy tanks,  you think rents will go down? Think again.

JMHO

GT

GT you live in a very unusual area as far as real estate values are concerned.  $4000 a month rents a mansion most anywhere else in the country.  And home values gaining 40% since 2009 is pretty unusual too but is likely that many folks in homes found the values going down 30% or more pretty rapidly.

I agree with you completely, here it will get you a 1,400 square foot 1970's tract home, which should drive my point home even further.... If I stood to gain $300,000, I could also easily lose the same $300,000. Almost did, but needed a home and stuck with it.

More in a minute.

Owning a house is not always a good investment, but if you find something you feel like might be a "forever home" than that is a lot of intangibles that are hard to put a price on.

You can't put a price on it because I would likely never sell it. My kids probably will though LOL....

What I was suggesting to Squirrel Master is that because he seems hot to buy sooner rather than later is that when the economic bubble bursts this next time, and it will, the loan he took out for $400K he will continue to be on the hook for while the house is only worth $280K and there will be many in the area for sale.

What difference would it make if he planned to stay there? This is where it gets tricky... If he had a solid 5 year plan, and could muster the credit to get a prime loan of $300000 at 3% at a 15 year fixed with 20% down, your staring $2,000/mo. in the face, the good news would be when you reach that at that 5 year point, pretty much no matter what home prices do, he could still cash out and be OK, if the same home was rented, say for $1500/mo. he would have to be diligent in putting into savings the extra $500 into an account and buying and IRA every 6 months... Still, the 5 years would only net you about $30,000, if in an IRA, about $40k, see the difference? at 1/3 of the loan period you would net less than half, not to mention the tax benefit of home ownership... Not sure how Nevada works on that in all honesty. California, it's extreme.


 

If he has his cash in the bank, he can comfortably buy way more house than previously expected, which will pay off down the road.  The same goes for investing.  Smart folks are keeping their cash out of the market, waiting to jump in when stocks get cheap.  The window won't be open for long, but it will allow smart folks to minimize their losses.  At least that is my plan.

Not a solid plan really, if the market does "tank" as you say, you would have to be a future telling genius on what to buy. Stocks wont split, they get devalued, by being devalued, there is a chance a bigger fish than you buys enough of the cheap stock to purchase and dismantle the company. If this happens, you lose everything. This is what happened to everyone's 401 the last go around. The only reason some survived was from the banks that were selling bad mortgages, the banks falsified almost everything. The bail out made it less obvious by dumbing down the losses.... Still, it was horrific.

That being said, money is cheap right now, I doubt seriously that interest rates will stay as low as they are today... So if you were able to get a loan for say $300000 at 2.7%-3.5% for 15 years, the payment would be manageable. If you buy more house than you should because of the false low, there is a chance you could come out on top, but you better have a rope on the planets that need to align and be ready to pounce when the time comes...


 

This next bubble popping will be different.  The government will not be able to print another 9 Billion dollars of stimulus like they did this time.  We will be burdened by Obamacare in full effect, we have half of the country on public assistance already and jobs continue to leave.  Stock prices are way over inflated now, they have a long way to fall.  And that is why I am using other people's money (rent) to pay for my new house.  I waited nearly 20 years to buy a second home.  Refinanced a few times along the way to get better rates while never taking out cash, and always paid biweekly so my 30 loan was done in 18.


Bottom line is that I was looking for a way to invest outside of the stock market.  I lost 35% in the Obama recession and I don't have time to make that up again.  At least with other people paying the loans on assets I own, just seems to make more sense at least in the short term while we see how the world is going to fix itself.   And congrats on the house GT, she's a beaut.

Not a reality yet, working on it.... But thank you very much, the hard work is finally starting to pay off..

Well, I blame Bush-a-nomics for the recession, but I digress....

If you are looking for the world to fix itself, you better find the fountain of youth.... I'm nearly 50 years old, I don't plan on working much after 60, if at all. To do that, I need my home to be paid off, or at least very very close... My dad followed a similar plan that you speak of, but he's 73, the vacation home ended up costing him more than it made him. Taxes were part of it, but not having his home paid down was a final bullet.... Had he been renting, he would really be in a world of shit...The stock market all but erased his retirement. I'm keeping things simple and more in my own control. I am by no means a genius when it comes to money, but by standing by my guns and hanging with a pretty shitty adjustable mortgage while putting a kid through college I was able to learn a lot, watching my friends move money around and get killed by interest rates and the markets, I learned what not to do..... For the most part anyway.



And Squirrel Master, If you go spend $4,000 on a hull and interior on a trailer, I'll drive to Vegas and punch you in the throat myself....LOL


There is no "correct" answer right now, if it was four months from now it would give you a little insight on what going to happen....

I am of the play it safe kind of thinking.... I don't think I have $4000 in any of my boats. The one with the most money in it is the 23' Crusader, and that's only because we put in a brand new 7.4l Mercruiser with a Bravo I, that alone was almost $8k.


Just my personal opinion, maybe if I knew more about Nevada taxes and real estate rentals and home prices I could give you some more solid advice...


Good luck with your decision bud...


GT

Too tired to give your comments the thought they deserve, but one thing in home buying that I touched on earlier.  When buying a house at these low interest rates we still went with a 30 year note.  I like the flexibility of having the choice of how much to pay each month.  Unless something monumental happens, every month I add an additional 15-20% to the payment to be applied against the principal.  Net result is paying off a 30 year loan in half the time but protecting myself some from the unexpected.  It is the smartest simplest thing any homebuyer can do for themselves is to get the house paid off as soon as possible.

I saw a headline just now that says you need to make 90K to afford the average 2 bedroom apt in OC.  It linked me to another article that give some insights that folks like Squirrel Master might like to read.
http://www.ocregister.com/articles/rent-658479-rents-orange.html

The way it worked for me is the 15 year was 2.65%, the 30 fixed was 3.75%. In my case it was only $400/mo. different on a $2800/mo. payment if you do the math, that's a big chunk of change, this is where sweat equity comes into play, buy the shittiest house in the nicest neighborhood.... Don't ever buy the nicest/biggest house in the worst neighborhood...

That being said, my employment is quite secure.


Not discrediting you my friend, just sharing what has worked for me, I had to do four years of 60+ hour weeks and do all the work on the house myself, including new roof and tile floors....

GT

LOL
I have two friends right now that live on big boats just because of the high cost of housing.  One in Dana Point for about a year now who is a foreman for one of the richest men in So Cal, and one in Long Beach going on 20.  Raised two kids on a 52' Chris Craft thru high school who both earned full ride scholarships for basketball.  He was a scrap metal dealer who never finished high school.

Time is your ally right now.  Cali may vote to make it completely legal.  That may drive down your profit in the short term, but it may also allow you to have more success buying an affordable home.  Regardless of what you pay, always pay it off as early as possible and never be late.  Also double check what the taxes will be when they readjust.  The taxes on my new house will be double what the owner was paying last year.e

Hey gt and glasscutter, I'd love some advice from u guys, I'm in a bad spot kinda, I have money to put down on a house, live in oc with my wife n kids, been renting my whole life, basically because my industry isn't accepted by the banks and Feds, (medical marijuana) and I can't prove my income... I'm told that I can buy on a stated income? What u guys think? I could put 60-80k down and it came from a settlement so not like it's bad money or anything lol.. been renting forever though and I'm so tired of it, I mean I pay 2800 a month and yes we have a great house but I'm sure the mortgage is less than 2k. Thanks for ur advice guys u guys need a podcast or something called jet boats and life by gt n glasscutter 😂😂😂


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Three simple questions.

One,  what is that money doing for you right now? Anything?

Two,  are you in a hurry? Have you found something you really like?

Three,  how certain are you that you will be staying in the area for at least 1/3 of the terms  of the loan you will be applying for? This is a big one.

As for stated income,  the laws have changed since the corruption of the mortgage companies. You need to read the fine print. The rates won't follow conventional wisdom.

I agree with GC, wait until after the election and see what happens with cannabis.  I would be willing to bet three loose joints that it will pass, this could effect you in two ways,  one,  the regulatory requirements may make it more difficult for you to turn a profit,  but two,  you will have a financially recognized occupation. This is the plus/minus part that comes with a lot of variables.

If prices weren't so nuts right now I would say try to find a home that is owner, or privately financed. I did this with my first home.

You will need to have a Lawyer draw up the contract and have it notarized and filed with the title company.

You can sometimes do this with pretty agreeable terms, sort of a rent to own type deal. The risks are a little scary,  but the reward is quite large too.

Give it a few months to see how things pan out,  but I think you're in a good spot.

Make that money work for you though, by investing in a Roth IRA or CD's  you can get a return on the money greater than any banks are offering. There are several short term investments you can make, but diversify,  never put all your eggs in one basket and read over the terms carefully. You want to be able to pull the money when you are ready for a move. Stay away from the stock market,  that is only for money you can afford to lose and should be considered long term only.  It's too volatile for short term investing.

Also know that a "sure thing" normally isn't.

I feel you are in the cat-bird seat. Be patient and do some research.

Also, be aware that the more money you can put in a down payment,  the more the banks will be willing to work with you. They need your cash as much as you need theirs. It is,  after all, a numbers game.

Hope this at least gets you in a direction you can live with,  don't panic and watch mortgage rates and home prices,  they will probably move at the same/similar rate, but in opposite directions.

Good luck.

GT