Comments on: Can Your House Be an Investment and a Home? http://www.automaticfinances.com/invest-in-your-house/ Money management for the 21st century Sun, 14 Mar 2010 17:44:13 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: Evolution of Wealth http://www.automaticfinances.com/invest-in-your-house/comment-page-1/#comment-3416 Evolution of Wealth Mon, 14 Sep 2009 15:34:00 +0000 http://www.automaticfinances.com/?p=965#comment-3416 I don't mean borrowing to spend the money or to do improvements. I mean keeping your equity seperate from your home to manage the equity. That way your home and your equity can both have returns rather than just your home. I don't mean borrowing to spend the money or to do improvements. I mean keeping your equity seperate from your home to manage the equity. That way your home and your equity can both have returns rather than just your home.

]]> By: Jason Unger http://www.automaticfinances.com/invest-in-your-house/comment-page-1/#comment-3415 Jason Unger Mon, 14 Sep 2009 14:54:14 +0000 http://www.automaticfinances.com/?p=965#comment-3415 @ Evolution - I'm not sure I'm answering your question specifically, but the biggest problem is borrowing against your house in order to improve upon it. Sure, there's a chance you'll get your money back, but the bigger likelihood is that you'll end up with just a bigger bill. @ Evolution – I'm not sure I'm answering your question specifically, but the biggest problem is borrowing against your house in order to improve upon it. Sure, there's a chance you'll get your money back, but the bigger likelihood is that you'll end up with just a bigger bill.

]]> By: Evolution of Wealth http://www.automaticfinances.com/invest-in-your-house/comment-page-1/#comment-3403 Evolution of Wealth Mon, 14 Sep 2009 01:01:31 +0000 http://www.automaticfinances.com/?p=965#comment-3403 How about starting with a reasonable house, adding maintenance and upkeep and then managing the way in which you pay for it? Could it then combine the two? What I mean is you have a house you can afford normally but you manage the equity in the house and take advantage of other people's money. Do you think that would work well to accomplish both? Give you a little velocity of money. How about starting with a reasonable house, adding maintenance and upkeep and then managing the way in which you pay for it? Could it then combine the two? What I mean is you have a house you can afford normally but you manage the equity in the house and take advantage of other people's money. Do you think that would work well to accomplish both? Give you a little velocity of money.

]]> By: Jason Unger http://www.automaticfinances.com/invest-in-your-house/comment-page-1/#comment-3301 Jason Unger Tue, 08 Sep 2009 13:41:19 +0000 http://www.automaticfinances.com/?p=965#comment-3301 @Funny - thanks for the comment, but I think you're missing the point. There's a big difference between maintaining your house -- keeping it from falling apart -- and upgrading your house for the sake of getting a return on investment. When something is broken, of course you fix it -- but you fix it because it's broken, not because when you sell it you expect to get 100% of the cost back. See the difference? @Funny – thanks for the comment, but I think you're missing the point.

There's a big difference between maintaining your house — keeping it from falling apart — and upgrading your house for the sake of getting a return on investment.

When something is broken, of course you fix it — but you fix it because it's broken, not because when you sell it you expect to get 100% of the cost back.

See the difference?

]]> By: Funny about Money http://www.automaticfinances.com/invest-in-your-house/comment-page-1/#comment-3300 Funny about Money Tue, 08 Sep 2009 12:56:49 +0000 http://www.automaticfinances.com/?p=965#comment-3300 From this point of view, then, there's no point in maintaining your home at all--in painting it, spending anything on keeping the landscaping up, updating various features as they become decrepit. It would be better to let your house slide downhill as it ages than to spend the money to keep it up, and really, using the front lawn (or dirt patch) as a parking lot for your fleet of junkers is reasonable, too. Yipe! Let's be sure none of the neighbors gets wind of this! ;-) From this point of view, then, there's no point in maintaining your home at all–in painting it, spending anything on keeping the landscaping up, updating various features as they become decrepit. It would be better to let your house slide downhill as it ages than to spend the money to keep it up, and really, using the front lawn (or dirt patch) as a parking lot for your fleet of junkers is reasonable, too.

Yipe! Let's be sure none of the neighbors gets wind of this! ;-)

]]> By: Carnival of Personal Finance 221- Labour Day Edition | Financial Highway http://www.automaticfinances.com/invest-in-your-house/comment-page-1/#comment-3295 Carnival of Personal Finance 221- Labour Day Edition | Financial Highway Tue, 08 Sep 2009 06:04:48 +0000 http://www.automaticfinances.com/?p=965#comment-3295 [...] Jason Unger from Automatic Finances presents Can Your House Be an Investment and a Home?. [...] [...] Jason Unger from Automatic Finances presents Can Your House Be an Investment and a Home?. [...]

]]> By: Lee Distad http://www.automaticfinances.com/invest-in-your-house/comment-page-1/#comment-3042 Lee Distad Wed, 26 Aug 2009 19:29:20 +0000 http://www.automaticfinances.com/?p=965#comment-3042 I think that people have to keep their domicile and their real estate investments discrete from each other. Levering up your home is quite literally "betting the farm" and most popular upgrades have no real effect on the resell price. As it is, house flipping is not for the faint of heart or the under capitalized. The perception that anyone can do it led to a lot of dumb money trying to play the game, and they got burned. Another huge factor in the housing collapse was people losing sight of the principle that it's your duty to yourself to pay off your mortgage and own your home outright. Instead, people were levering up their homes into ludicrous valuations in order to spend that capital on stupid and frivolous things. Practically speaking, your residence is a sort of savings account. If you bought frugally and wisely and put reasonable maintenance into it, years down the road when you sell, if you were both prudent and lucky, you'll realize a gain. Only then is it an "investment." I think that people have to keep their domicile and their real estate investments discrete from each other. Levering up your home is quite literally "betting the farm" and most popular upgrades have no real effect on the resell price.

As it is, house flipping is not for the faint of heart or the under capitalized. The perception that anyone can do it led to a lot of dumb money trying to play the game, and they got burned.

Another huge factor in the housing collapse was people losing sight of the principle that it's your duty to yourself to pay off your mortgage and own your home outright. Instead, people were levering up their homes into ludicrous valuations in order to spend that capital on stupid and frivolous things.

Practically speaking, your residence is a sort of savings account. If you bought frugally and wisely and put reasonable maintenance into it, years down the road when you sell, if you were both prudent and lucky, you'll realize a gain. Only then is it an "investment."

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