Take $10,000........................and?

[Mega]

Re: Take $10,000........................and?

I RENT.

Ok Hair transplant it is!
Mike

[Jim Nickerson]

Re: Take $10,000........................and?

I RENT.

Ok Hair transplant it is!
Mike

You might go get a quote now and then wait until the fuller impact of the UK recession is in place, and then go back and get a quote, which if it isn't lower, then try to bargain the guy's price down.

[brokerknight]

Re: Take $10,000........................and?

Pay down the principal on your home mortgage. That would mean a guaranteed return in the amount of your mortgage interest rate, as well as an early debt retirement. That would be useful in the event of a job loss, disability etc.

I conditionally disagree.

If you are of the party that believes that we are in a deflationary cycle which will last for the next 10 years as some here do then it would be best to pay off your mortgage quickly.

However, if you believe that we are about to enter a period of double digit inflation you'd be best paying only the interest on your mortgage for three reasons:

1) the interest paid on your mortgage in tax deductible;

2) inflation will devalue your mortgage debt if it exceeds the interest on your mortgage, which is nearly a moot point because of the fact that the more interest you pay...refer to #1.

3) the dollars you are able to use by not paying the principal are worth more today than they will be tomorrow in an inflationary cycle. Best to invest those in something keeping pace with or giving you a higher rate of return than inflation than to pay down principal that, every day kept, costs you less and less (as a percentage of your income) to pay off someday.

In essence, in periods when inflation is high and incomes are rising with inflation (as long as your income keeps up) your mortgage is becoming more affordable to pay off.

Speaking strictly from a financial standpoint, I'm not even sure that owning a home is the "American Dream" people think it is. Uncle Sam will ALWAYS charge you taxes on the property, and as the home gains value over time your taxes will increase. Plus the home itself is depreciating and will cost tens to hundreds of thousands in repairs and updates/upgrades and maintenance. On top of this you are taxed when the property is sold someday, and if you haven't lived in the property you are taxed at an even higher rate.

If you have the guts, work ethic and ingenuity to make it work starting a business will make you more money than home ownership.

In an attempt to pre-empt property investor rebuttals my lone caveat is that there are types of investment in property that are much more profitable than home ownership, like well located and timed property development, farm land or apartment complexes. I would highly recommend the first two over the latter

[doom&gloom]

Re: Take $10,000........................and?

MLP stocks, some of which are VERY vcash positive, wide moat businesses with HUGE dividends as a result of being tossed out with everything else. I highly doubt most of the US is going to live without gas, natural gas, etc. Pipelines are 'wide moat' businesses that tend to get paid for simply moving stuff, and usually have locked in multi-year pricing contracts.

[mfyahya]

Re: Take $10,000........................and?

You might go get a quote now and then wait until the fuller impact of the UK recession is in place, and then go back and get a quote, which if it isn't lower, then try to bargain the guy's price down.

Or in India at over 50% off: fusehair.com

[blazespinnaker]

Re: Take $10,000........................and?

Nymex gold options. Let it ride!