The “Water Cooler” is a feature on Claycord.com where we ask you a question or provide a topic, and you talk about it.
The “Water Cooler” will be up Monday-Friday at noon.
QUESTION: Would you rather rent/lease or own a house? Tell us why you answered the way you did.
Talk about it….
Own – you get to keep the appreciation…and when you rent and something goes bad (water heater, built-in dishwasher, etc.) you can wait days, weeks, for a repair or replacement … ask me how I know that one
OWN !
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First house you don’t go nuts and buy more house than you absolutely need, bare minimum. House payment needs to be affordable with one person working and other on unemployment. Imperative there be savings put aside for emergencies. Wise man once told me, “you put six months salary in the bank and you don’t touch it !” At the time thought he was nuts, as I gained maturity realized needed one years salary. Also need to max out 401k contributions, start out of high school to maximize the effect of compounding.
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Don’t sign if house loan has a prepayment penalty.
Decades ago coworker brought in a DOS program, mortplan. Started playing with it, what caught my attention is paying extra on principle each month and number of future payments that went away. That simple DOS program convinced to start dumping money into extra principle payments and eliminated 16 years off a 30 year loan at 10.75 percent.
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Secret to extra principle payments is making them each month from beginning of loan when they’ll have greatest effect.
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Granted most first time home buyers would have trouble doing the above.
In my case was an industrial electrician, Union and tons of overtime.
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Parents do your kids a favor, steer them towards the crafts. Example ETEC program at Los Medanos Junior College in Pittsburg. https://www.losmedanos.edu/eetec/contact.aspx
Students in program are headhunted buy companies even before they complete the programs.
Graduates come out with a portable craft allowing them to get a job anywhere in the world. Some former coworkers went to work for bart as electricians . . . . $100,000 a year.
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“Get a little experience and a little credibility and you can walk out one door on Friday and into another on Monday, usually at a better pay rate.”
https://mostlycajun.com/wordpress/?p=31620
Great advice on making the extra payments. I saw something similar to your DOS program, but it was more of a simple spreadsheet. I have been trying to pay extra principal payments whenever I can.
Did quick search and came across this calculator, something to play around with.
https://tinyurl.com/mr3axk8z
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Coworker used to show up at morning Safety meetings with a mocha frappa whatever. Asked him how much one costs and how many times a week to you buy one?
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He came up with price,
multiply that by number purchased in one week,
multiply that number by 4,
multiply that number by 12 and that’s what buying coffee costs you per year.
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Color drained from his face and he began speaking in expletives.
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Challenge I ask people to do is carry a pad and pencil around with you for a week, write down amount you pay for things rounding up to next dollar. At end of week look at your purchases, which ones could you have done without and what is that dollar amount? Then multiply by 52, that amount could go to savings or extra principle payments.
Own … I don’t need to ask permission to make changes.
I own my home, and it’s paid for, but sometimes I wish I was renting a house,
but never an apartment, because I when something goes wrong, like a new
roof or water heater, I can call the landlord. The landlords I had before I bought
my home were good at getting things fixed in a timely manner. On leasing, I would
never lease, I don’t like contracts unless they are in my favor.
I would choose to own again. The only drawback is the property tax every year. Funny how it increases every year with little to no increase in benefits to show for it. Oh wait, new fare gates at BARF!
Own ~ It’s more responsibility, but worth it.
We have for the last 45 years.
Was able to pay it off in 24 years.
Have made improvements and repairs along the way.
The next project is the kitchen, … needs up-dating.
Also, no HOA, which is a blessing.