Life At What Age... - Page 3

el borracho · 04-13-2022, 09:20 AM

At what age did you pay off your primary residence?

As a bonus, please write if you paid off another property before paying off your primary residence.

2bikemike · 04-13-2022, 11:56 AM

One more thing I will add. There are a hundred ways to skin a cat. There are a hundred ways to handle your finances. It is important that you tailor your plan in a way that suits you and your discipline.

I have read several books on investing and managing your money. Dave Ramsey might make since for some, he is not for me. I am sure he would criticize the way I manage my finances. But like I said there are a hundred ways to skin a cat!

**Bearcat** · 04-13-2022, 11:56 AM

Thread with a reasonable majority opinion: exists

BWillie: i DiD wHaT eVeRyOnE eLsE sAyS iS tHe DuMbEsT tHiNg PoSsIbLe

**Bearcat** · 04-13-2022, 12:04 PM

Quote:

Originally Posted by 2bikemike

One more thing I will add. There are a hundred ways to skin a cat. There are a hundred ways to handle your finances. It is important that you tailor your plan in a way that suits you and your discipline.

I have read several books on investing and managing your money. Dave Ramsey might make since for some, he is not for me. I am sure he would criticize the way I manage my finances. But like I said there are a hundred ways to skin a cat!

Yeah, and looking at it from the other way around, I think people miss that point when following someone like Ramsey to the letter... his strategy is for a specific subset of people and also not necessary for a lifetime. I mean, sure it might work for some people all the time forever and you can still retire on time and be happy, but it also doesn't mean it's optimal when your 20 and then 30 and then 40, etc.

**Rain Man** · 04-13-2022, 12:10 PM

When I got out of college, my plan was to buy a home as soon as possible and have it paid off by age 52. But I had a career misstep and also didn't want to live in St. Louis forever, so that plan got derailed. At age 31 I bought a condo, which was a great first step, and then a year later we bought our house.

So I was 32 when we bought the house and the plan became payoff at 62. But interest rates were coming down and we refinanced 2 or 3 times and eventually ended up with a 15 year loan. We decided that we would put any bonus money toward the home loan and I'm proud to say that we paid off the house when I was 48 or so, ahead of my original plan.

I realize that I could leverage our home equity for other investments, but I'm too conservative. I want to own my house with zero risk.

Kiimo · 04-13-2022, 12:11 PM

The cheapest non condo where I live goes for around a million bucks

so never

HC_Chief · 04-13-2022, 12:17 PM

With interest rates as low as they have been, it does not make sense to pay it off. My current MR is at just above 2%

That is basically free money. My portfolio has taken a pounding this year, but it has produced more than enough growth over the past five years to make selling to pay off a mortgage balance a terrible idea.

**DaFace** · 04-13-2022, 12:50 PM

Quote:

Originally Posted by Bearcat

Thread with a reasonable majority opinion: exists

BWillie: i DiD wHaT eVeRyOnE eLsE sAyS iS tHe DuMbEsT tHiNg PoSsIbLe

Eh, from a numbers perspective, sure, it makes sense to take the cheap loan and put your money to work elsewhere. Nothing wrong with wanting peace of mind from eliminating a huge debt and payment from your life, though, as long as you understand you're paying (in a sense) for it.

It's not that far off from someone trying to tackle a bunch of varying types of debt. Should you pay off the biggest interest rate first? Probably. But if paying off a small loan first (even with a lower interest rate) helps you to simplify how you plan otherwise, it can be a worthwhile approach.

el borracho · 04-13-2022, 12:56 PM

Quote:

Originally Posted by Kiimosabi

The cheapest non condo where I live goes for around a million bucks

so never

Why do you stay? Family? Job?

Not trying to be snarky. I am genuinely curious what keeps people living in cities with astronomical housing costs. I grew up in California and there are things that I sometimes miss but, looking at it with my current perspective, I wish I had left sooner.

**Buehler445** · 04-13-2022, 01:05 PM

Quote:

Originally Posted by DaFace

I've always thought the idea of having someone else pay the mortgage on real estate I own would be great...

Except for that whole "being a landlord" thing. I think I'd rather stab myself in the eye than have to deal with idiots tearing up something I own.

Exactly. Plus most of my home improvents/Repairs/Maintinence/Whatever experience has been:

Bid: $2500 for a project
Consensus: $5,000 absolute maximum worst case scenario.
Buehler445: I have $7500.

$10,000 later I'm about half ****ing done.

excessive · 04-13-2022, 01:10 PM

Quote:

Originally Posted by SuperChief

The wife and I are in savings mode in order to buy our first home in a couple years time (hopefully). We're both in our early 30s, with no generational wealth to speak of. It's hard out here for a piiiiiiiimp.

**Bearcat** · 04-13-2022, 01:21 PM

Quote:

Originally Posted by DaFace

Eh, from a numbers perspective, sure, it makes sense to take the cheap loan and put your money to work elsewhere. Nothing wrong with wanting peace of mind from eliminating a huge debt and payment from your life, though, as long as you understand you're paying (in a sense) for it.

It's not that far off from someone trying to tackle a bunch of varying types of debt. Should you pay off the biggest interest rate first? Probably. But if paying off a small loan first (even with a lower interest rate) helps you to simplify how you plan otherwise, it can be a worthwhile approach.

Yeah, I've moved a couple times and some equity always goes towards that 20% mark on the next place to avoid mother****ing scam PMI*, I've been able to use some to pay off student loans and what not in one large chunk...... it definitely frees up options on disposable income versus other investments and what not (minus a few hundred in student loans each month, plus that much for 401k contributions).

*I hate PMI at least as much as Buehler hates Squirmin Herman

JPH83 · 04-13-2022, 01:29 PM

I'm in the UK so the idea of a "primary residence" is hilarious. But I've done the maths on it and i'll beeee...167.

**Rain Man** · 04-13-2022, 01:42 PM

Quote:

Originally Posted by JPH83

I'm in the UK so the idea of a "primary residence" is hilarious. But I've done the maths on it and i'll beeee...167.

Are you actually paying something off, or is that a deal where you get a punch card and a free house if you live in it for 100 years?

I remember reading that some places in Japan were being sold with 100-year mortgages. A person bought them, and then presumably could pass the mortgage to their heirs.

JPH83 · 04-13-2022, 01:57 PM

Quote:

Originally Posted by Rain Man

Are you actually paying something off, or is that a deal where you get a punch card and a free house if you live in it for 100 years?

I remember reading that some places in Japan were being sold with 100-year mortgages. A person bought them, and then presumably could pass the mortgage to their heirs.

Nah I'm kidding. I've got a bog-standard mortgage. Well, possibly about to get a much larger one so I can have an escape room from the family. I'll pay it off in my 60s I guess. I've not heard of that type of mortgage you mention.

My understanding with Japan is it's one of the few places where houses can depreciate and where they're not viewed as assets. Something about their lack of durability due to earthquakes maybe? Don't quote me, could be nonsense. I've been and tbh it may be the only place on earth with smaller housing than the UK.

Marcellus · 04-13-2022, 02:06 PM

I would have had mine paid off in the next year or 2 but 2 years ago we bought a nicer place and sold the old one. While it put me in more debt the equity in my new house will far surpass the value of my old house even once the old one would have been paid off. The location just has a low ceiling due to comparable even though my house was in a cool spot.

We will stay in the new house for another 10-12 years then downsize and pocket the difference and have the retirement house paid for.

As many have noted with a <3% Interest rate and the value growing way faster than that its a good investment.

I know the housing boom is about to go bust eventually but the value of my house is up 33%+ since I bought it about 2 years ago as well.

I got a good deal on it right before things went crazy.

View Poll Results: At what age did you pay off your primary residence?
Before age 30	2	2.56%
30-35	1	1.28%
36-40	7	8.97%
41-45	5	6.41%
46-50	10	12.82%
51-55	18	23.08%
56-60	9	11.54%
61-65	6	7.69%
66 or over	1	1.28%
Probably never going to pay off my primary residence	19	24.36%
Voters: 78. You may not vote on this poll

04-13-2022, 09:20 AM
el borracho In Pat We Trust Join Date: Sep 2001 Location: Albuquerque, NM Casino cash: $2709148	At What Age... At what age did you pay off your primary residence? As a bonus, please write if you paid off another property before paying off your primary residence.
Posts: 12,246

04-13-2022, 11:56 AM	#31
2bikemike Born to Ride Join Date: Sep 2002 Location: NWA Casino cash: $-984623	One more thing I will add. There are a hundred ways to skin a cat. There are a hundred ways to handle your finances. It is important that you tailor your plan in a way that suits you and your discipline. I have read several books on investing and managing your money. Dave Ramsey might make since for some, he is not for me. I am sure he would criticize the way I manage my finances. But like I said there are a hundred ways to skin a cat!
Posts: 16,421

04-13-2022, 11:56 AM	#32
Bearcat Would an idiot do that? Join Date: Nov 2000 Location: Arizona Casino cash: $-875069	Thread with a reasonable majority opinion: exists BWillie: i DiD wHaT eVeRyOnE eLsE sAyS iS tHe DuMbEsT tHiNg PoSsIbLe __________________
Posts: 59,472

04-13-2022, 12:10 PM	#34
Rain Man Seize life. Be an ermine. Join Date: Jul 2001 Location: My house Casino cash: $-482449 VARSITY	When I got out of college, my plan was to buy a home as soon as possible and have it paid off by age 52. But I had a career misstep and also didn't want to live in St. Louis forever, so that plan got derailed. At age 31 I bought a condo, which was a great first step, and then a year later we bought our house. So I was 32 when we bought the house and the plan became payoff at 62. But interest rates were coming down and we refinanced 2 or 3 times and eventually ended up with a 15 year loan. We decided that we would put any bonus money toward the home loan and I'm proud to say that we paid off the house when I was 48 or so, ahead of my original plan. I realize that I could leverage our home equity for other investments, but I'm too conservative. I want to own my house with zero risk. __________________ Active fan of the greatest team in NFL history.
Posts: 145,278

04-13-2022, 12:11 PM	#35
Kiimo MVP Join Date: Feb 2013 Location: Studio City, CA Casino cash: $1998742	The cheapest non condo where I live goes for around a million bucks so never
Posts: 13,844

04-13-2022, 12:17 PM	#36
HC_Chief That's just f***in' stupid Join Date: Aug 2000 Location: suburbia Casino cash: $3687107	With interest rates as low as they have been, it does not make sense to pay it off. My current MR is at just above 2% That is basically free money. My portfolio has taken a pounding this year, but it has produced more than enough growth over the past five years to make selling to pay off a mortgage balance a terrible idea. __________________ "Gentlemen, you can't fight in here, this is the war room!"
Posts: 12,355

04-13-2022, 01:29 PM	#42
JPH83 Veteran Join Date: Feb 2021 Casino cash: $-229600	I'm in the UK so the idea of a "primary residence" is hilarious. But I've done the maths on it and i'll beeee...167.
Posts: 4,360

04-13-2022, 02:06 PM	#45
Marcellus Diablo Negro Join Date: Sep 2003 Casino cash: $-337338	I would have had mine paid off in the next year or 2 but 2 years ago we bought a nicer place and sold the old one. While it put me in more debt the equity in my new house will far surpass the value of my old house even once the old one would have been paid off. The location just has a low ceiling due to comparable even though my house was in a cool spot. We will stay in the new house for another 10-12 years then downsize and pocket the difference and have the retirement house paid for. As many have noted with a <3% Interest rate and the value growing way faster than that its a good investment. I know the housing boom is about to go bust eventually but the value of my house is up 33%+ since I bought it about 2 years ago as well. I got a good deal on it right before things went crazy.
Posts: 74,292