I'm not going to tell you your wrong Mike. I'll simply say NO. Not always.
Interesting Statistic Heard Today
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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
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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.
Chubbs103
US Veteran
I really hope Tiggy is your car.
Lakesider, I understand priorities. We all have our own. And you are correct. But some post are adamant about their way being the only way. I'm not trying to convince anyone to do anything. I'm simply pointing out how many people do it and it's a viable option. Dare I say profitable option. That's all.
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All our situations are different and your method or mine won't work for everyone, but I'm not sure I understand your last comment: "six months the same as cash" on appliances.
I've found you can almost always dicker on appliances, furniture, and other such items, up to twenty per cent off if paying cash. By "six months same as cash" do you mean you can offer twenty per cent less than the posted price and then request the seller to give you six months to pay your negotiated lower price? I doubt a business would do that (except on cars and that's outside this discussion) but maybe some of us aren't good negotiators.
BLACKHAWKNJ
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"If you owe your banker 1,000 pounds (sterling), you're at his mercy. If you owe him 1,000,000 pounds he's at yours." John Maynard Keynes
That's a good one. I've never heard that.
Rockquarry, six months same as cash means the retailer will give you six months to pay for your purchase interest free. As if you were pay cash upfront. Hence the saying "six months same as cash". Time frame changes some times. 90 days ,12 months etc….. has nothing to do with negotiated price, just the manner in which you pay. These offers happen a lot during the retailers slow time.
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Agreed, they will likely do "six months same as cash" if you pay full price.
BLACKHAWKNJ
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Recall a small article I read in the business section of the New York Times years ago entitled "The Changing Attitude Towards Debt", it quoted the noted Wall Street economist Henry Kaufman as saying "Nobody celebrates
paying off the mortgage anymore."
paying off the mortgage anymore."
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That may be because the mortgages don't get paid off. Few new home buyers nowadays stay in one home for fifteen, twenty, or thirty years, so they always have a mortgage payment. They see it as a permanent fixture of life, something that will always be with them. It's much like the seven-year car note and $800 monthly payment. Not many of these folks will keep a car until it's paid for so they learn to live with the perpetual car payment as well.
