I'm not going to tell you your wrong Mike. I'll simply say NO. Not always.
Interesting Statistic Heard Today
- Thread starter Narragansett
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I'm not going to tell you your wrong Mike. I'll simply say NO. Not always.
Many of my stocks I do not roll over, I have the dividends deposited in my bank account. With that money going in that way if we take a vacation, pay property taxes, buy a car or do some serious home repair I do not have to liquidate anything to have funds available.
I read Millionaire Next door 30 yrs ago. Rich Dad Poor Dad is also a good read for young people.
NFrameFred
Member
Bah ! Humbug ! 71.6% of statistics are made up, anyway. 
BLACKHAWKNJ
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I thought you bought your BMW-or SUV, or whatever-with a home equity loan, when the lender foreclosed you took off in your paid off BMW or whatever.
Regarding stocks, bonds, investments, savings they have the advantage
over real estate in that they are pretty liquid. John Maynard Keynes coind the term "liquidity trap"-"Property rich, cash poor" is the phrase I heard.
As long as there are property taxes you never own your home-you just rent it from the local municipality.
Regarding stocks, bonds, investments, savings they have the advantage
over real estate in that they are pretty liquid. John Maynard Keynes coind the term "liquidity trap"-"Property rich, cash poor" is the phrase I heard.
As long as there are property taxes you never own your home-you just rent it from the local municipality.
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Blackhawk, well stated. I know a lot of house rich people. There is also the lost opportunity cost of having your money tied up in your home….. I'm a firm believer in owning the nicest house in the nicest neighborhood you can afford. It will appreciate. Im also a firm believer in using someone else's money to buy it.
LVSteve
Member
It's funny, one of the slams Americans on various forums put on me for coming from England is "you never own your own property, it all belongs to the Queen". My comeback "If your property is yours and only yours, why are you paying property taxes on it?" results either in invective or a stony silence.
I get what people mean but your paying for services provided by a municipality. HOWEVER it would be more fair if we all paid the same amount. Don't penalize people with more expensive homes. And renters should kick in their fair share. This is part of the reason rents are high. Landlord passes expense onto Tennant. I also don't think it's fair that seniors pay school tax when their kids are 30 yrs old. Meanwhile a renter could have 5 kids in school and technically not pay anything. In my mind the whole system is broke.
OP
Well I do not see how you get around property taxes, unless you want no schools or municipal services
There are some states in the US that don't have property taxes.
Which states would those be? (When I googled the question, the answer I found was that all states in the US have property taxes.)
LVSteve
Member
cmj8591
Member
Don't confuse owing money with being in debt. Debt is when you owe money that you don't have. If I have a $100000 mortgage and $200000 in the bank, I'm not in debt. If you had taken advantage of the low interest rates and got that $100000 mortgage at 2.5%, you could take that $100000 and invest it in a 15 month CD right now at 4.5% with zero risk. And that's just one quick example of how you could make that money work for you. If you bought $100000 worth of S&W stock, well, good luck with that!
I don't believe that is the definition of debt. Debt is when you owe something that you have not yet repaid.
If the debt is money, whether you have the money to repay the debt, or do not have the money to repay the debt, is immaterial. The debt is the obligation to repay what is owed.
I don't believe that is the definition of debt. Debt is when you owe something that you have not yet repaid.
If the debt is money, whether you have the money to repay the debt, or do not have the money to repay the debt, is immaterial. The debt is the obligation to repay what is owed.
Thank you. Clarification is needed by some............
Not all debt is bad. This country could have never been built without companies taking on debt to finance ideas and expansions. Some members here look at a mortgage as a scarlet letter. Anytime I can use somebody else's money at a reasonable rate I will. GM offered 0% for 7 yrs. Take it!!! You can pay it off anytime u want. It's free money. Yet some here would suggest it's ludicrous to finance an automobile for 7 yrs. If your leasing. Do it with nothing down. Total cost at end is the same. Why would you give them a down payment just to lower payment???? Buying appliances? If they offer 6 months same as cash. Take it!!! Not sure why any of this is so hard to understand.
cmj8591
Member
Thanks for straightening out the semantics for me. Let me rephrase it. Just because you have DEBT doesn't mean you have negative net worth.
Rowlette
Member
You'll have the same debt but your net worth is beyond your debt.
Laughing at Oneself and with Others is good for the Soul
Real debt is when you have Willie "Ice Pick" DeLuca holding a marker on you.
I was in a pinch.
I was in a pinch.
