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237 votes

Should I buy my house in cash, or with a mortgage and invest the rest of my money?

Ask your investor friends if you already owned the house, would they be advising you to take out a mortgage in order to invest elsewhere. If not, ask them to explain the difference between taking out ...
Rupert Morrish's user avatar
108 votes

Pay off Credit Card Debt now or later

You are conflating issues. You made a charge on a credit card. You have the money, earning near-zero interest, but are wondering whether you should use that money to pay a (presumably) high interest ...
JTP - Apologise to Monica's user avatar
107 votes
Accepted

When is it better to move - before or after a housing bubble bursts?

If you're moving up in house in the same area, it's better to wait until the alleged bubble bursts, since bubbles affect higher-prices homes more than lower-priced homes. You could also sell now and ...
D Stanley's user avatar
  • 137k
93 votes
Accepted

Paying for a flat renovation to reduce rent payments in the future

I generally find that when two things are mixed together, it doesn't end well. Your friend wants to borrow the money for a renovation, and perhaps can't borrow elsewhere, and you want to live in a ...
Kate Gregory's user avatar
  • 13.4k
81 votes

Should I buy my house in cash, or with a mortgage and invest the rest of my money?

I think you have a misunderstanding in point 2: Effectively, the cost of the mortgage in the first year would be much higher than the nominal ~3.5 percent interest rate of the loan. No, the rate ...
D Stanley's user avatar
  • 137k
69 votes
Accepted

Is there any reason to not buy if mortgage is comparable to rent?

There are a few economical reasons to rent instead of buy including if the cost are similar. The first is that you anticipate that you might be moving soon. It is typically expensive to transact real ...
Pete B.'s user avatar
  • 76.7k
47 votes
Accepted

First job: Renting vs get my parents to buy me a house

Rent. You have no idea whether you will still be in the same part of the country five years from now; you may not even be in the same country. A house is a boat anchor you really do not need or want ...
keshlam's user avatar
  • 48.2k
37 votes
Accepted

Do I care if the housing market has gone up or down, if I'm moving from one house to another?

There are often taxes (by whatever name) that scale with the property price. Agents’ fees are also often a percentage of the property price. These costs are usually a small but noticeable percentage ...
Lawrence's user avatar
  • 9,372
36 votes

Pay off half mortgage vs invest in stocks

Well "sane" is a pretty low bar... It's not a terrible plan, but it's not guaranteed to work in your favor. If you are correct that the market is at a peak, then yes, you'll be better off ...
D Stanley's user avatar
  • 137k
35 votes

How to best invest 90,000 EUR with zero knowledge in investing?

You stated several things in your question that you are afraid of - you are afraid of investing in something you can't "see", afraid that you're buying the rental too high, afraid that you'll be stuck ...
D Stanley's user avatar
  • 137k
34 votes

Can someone sue for house ownership if they gave money for it?

In the US (and I'd imagine elsewhere), before the bank gave your parents a loan to buy the house, they need to underwrite that loan. Underwriters are (generally) required to document the source of ...
Justin Cave's user avatar
  • 27.3k
29 votes

When is it better to move - before or after a housing bubble bursts?

If you sell and buy around the same time, the market situation (hot, cold, before, after, or no crash) is of little relevance - it just affects the size of the numbers on both contracts, and about the ...
Aganju's user avatar
  • 37.7k
29 votes

Is there any reason to not buy if mortgage is comparable to rent?

Buying means you are taking on the risk associated with the price fluctuation of the property. If the property goes down in value, it's possible you end up underwater on your mortgage when you decide ...
Joe's user avatar
  • 35.8k
29 votes
Accepted

How many years do I need to own a house until I don't have to pay capital gains taxes?

The property must be your primary residence and you must have occupied it for 2 of the last 5 years and make no more than $250,000 in gains if you're single or $500,000 if file joint tax returns with ...
BobbyScon's user avatar
  • 14k
28 votes

Should I buy my house in cash, or with a mortgage and invest the rest of my money?

I think you're right. However... unless (1) you're very rich, or (2) the house is very cheap, or (3) you're buying one house with the proceeds of another, then buying with cash is going to wipe out a ...
RonJohn's user avatar
  • 50.7k
26 votes
Accepted

How do I go about asking landlord to prorate when I can't move in yet?

Just ask! If the apartment isn't move-in ready and the landlord asked you to wait, send an email (put it in writing) and say something like: "Dear Ms Landlord, Thank you for painting the space and ...
Rocky's user avatar
  • 24.1k
23 votes

First job: Renting vs get my parents to buy me a house

There is a mathematical way to determine the answer, if you know all the variables. (And that's a big if.) For example, suppose you rent for 4 years and the price of rent never increases. The total ...
TTT's user avatar
  • 47.2k
23 votes

How to best invest 90,000 EUR with zero knowledge in investing?

It makes sense to avoid share picking, if you're not really familiar with individual companies. But a reasonable alternative is to buy an Exchange-Traded Fund which tracks a whole portfolio of ...
MSalters's user avatar
  • 2,745
23 votes

Pay off Credit Card Debt now or later

If you have 15,000 in your checking account, you should see these two events (paying for house and getting money for internship) completely separated. You pay your bill when it is due and no interest ...
glglgl's user avatar
  • 5,415
22 votes

When is it better to move - before or after a housing bubble bursts?

Tricky choice, but there's a couple of things to consider. You said you plan on upgrading to a more expensive house, so you might save more on the new house post-bubble than you'd lose on your current ...
Nuclear Hoagie's user avatar
21 votes
Accepted

House Purchase: Pay student loans or put 20% down?

There are times that the simplest explanation (or analysis) is best. You show that, for a time, the PMI is $1812/yr. And it's the cost you will incur by sending $15,000 to the student loan instead ...
JTP - Apologise to Monica's user avatar
17 votes

Pay off half mortgage vs invest in stocks

This will depend greatly on your personal appetite for risk. From a strictly monetary point of view, you'd likely do better by investing in the market (although past performance does not guarantee ...
Nuclear Hoagie's user avatar
16 votes

Paying for a flat renovation to reduce rent payments in the future

Since your friend is the owner of the property, he will be the owner of the renovated property. Unless you gain ownership on part of the property in exchange of your investment, your arrangement is ...
zakinster's user avatar
  • 269
15 votes

What should I be concerned with in buying a house for less than the market value?

This is a pretty common situation, so not too much fuss involved. Most lenders will have have no issue with counting an equity gift as down-payment and since the difference between value and mortgage ...
Hart CO's user avatar
  • 70.5k
15 votes

Can someone sue for house ownership if they gave money for it?

My parents received money from my grandmother to put a down payment for a house. This sounds as if it was supposed to be a gift. Or was it only loaned? Now [grandmother] wants her money back which ...
glglgl's user avatar
  • 5,415
13 votes

Pre-pay mortgage in full - do you have to pay off the projected interest as well?

Can I give the bank the $300,000 to clear the mortgage, or must I pay off the total interest that was agreed upon for the 30 year term? This depends on the loan agreement. I had one loan where I was ...
Brythan's user avatar
  • 21k
13 votes
Accepted

Pay off entire mortgage or put into investments

Pay off my entire mortgage, and put the rest to stocks I like this option, rather than exposing all 600k to market risk, I'd think of paying off the mortgage as a way to diversify my portfolio. ...
Hart CO's user avatar
  • 70.5k
13 votes

Is there any reason to not buy if mortgage is comparable to rent?

There are already great answers that cover most of it. Here are a couple of other considerations. Be sure you understand the cost of ownership. The other answers have covered this pretty well, but ...
DSway's user avatar
  • 1,444
12 votes

Should I buy my house in cash, or with a mortgage and invest the rest of my money?

I think it's important to look at numbers. Let's consider a $100,000 house. Case one: Buying with cash In this case, the risk is having all your eggs in one basket. Many people use the term "...
Shaz's user avatar
  • 337
12 votes

Do I care if the housing market has gone up or down, if I'm moving from one house to another?

You care if you’re trading up or down, which is very common. The amount that you have to pay to trade up, or receive when trading down, shrinks and grows with the average house price. You also care ...
Mike Scott's user avatar
  • 23.5k

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