How old are you?

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Sounds like you purchased a home in Ciara battie. What plan did you buy? Care to share pricing?



A 25-year old all-cash buyer for $1M+... That is impressive. How old were you when you became a millionaire?
 
It was for the mortgage interest deduction. I had initially wanted to pay in full, but was advised to do this instead. It is (compared to the price of the house) a fairly small loan, it really doesnt make that big of a difference that is kind of why I even forget there was a loan on the house for a second.



Not sure if I mentioned it before but at the time of this purchase everything was literally going haywire in the global economy. DOW was up and down 500 or 600 points on a regular basis. Now that I think after the DOW has dropped I can have the peace of mind to enter the market again. Granted it may still drop but at least for me it is a buyers market in stocks and there are plenty of other oppurtunites out there beyond stocks in commercial real estate, foreign investments and such. I think what it all kind of boiled down to was the fact that at the time I was already

-looking for a place in Irvine

-banks were dying all around us and I personally did not want to get caught with a lot of money at a bank that was going to die

-and if all else failed and I lost everything at least Id have the house.



It was a pretty tumultuous time a couple of months ago as Im sure everyone knows and at the time I honestly did not know where to keep my money



blackvault cm has I think the point right the money that was "saved" thru the loan is being put to use where it is earning a profit of more than the interest rate on the loan
 
[quote author="Battie4" date=1232620288]It was for the mortgage interest deduction. I had initially wanted to pay in full, but was advised to do this instead. It is (compared to the price of the house) a fairly small loan, it really doesnt make that big of a difference that is kind of why I even forget there was a loan on the house for a second.



Not sure if I mentioned it before but at the time of this purchase everything was literally going haywire in the global economy. DOW was up and down 500 or 600 points on a regular basis. Now that I think after the DOW has dropped I can have the peace of mind to enter the market again. Granted it may still drop but at least for me it is a buyers market in stocks and there are plenty of other oppurtunites out there beyond stocks in commercial real estate, foreign investments and such. I think what it all kind of boiled down to was the fact that at the time I was already

-looking for a place in Irvine

-banks were dying all around us and I personally did not want to get caught with a lot of money at a bank that was going to die

-and if all else failed and I lost everything at least Id have the house.



It was a pretty tumultuous time a couple of months ago as Im sure everyone knows and at the time I honestly did not know where to keep my money



blackvault cm has I think the point right the money that was "saved" thru the loan is being put to use where it is earning a profit of more than the interest rate on the loan</blockquote>


I guess the "dark days" of October were scary for all so this scenario seems feasible. You have now been sucked in to the IHB, like it or not!
 
yes Ciara I believe the home was actually sold/in escrow before but the buyer backed out at the end. Plan 4, and not to be a pain but Id rather prefer not to share the price although Im sure thru records you can find it. Id like to be as anonymous as possible although as I type this I realize that really hasn't happened today.
 
[quote author="blackvault_cm" date=1232618410]Two options. Put 500K down on a home or finance 500K for 5% or so. It comes down to opportunity cost. So relatively speaking if you can earn more than 5% why burn your capital. Perhaps you can start a business that yields a profit margin of 11%.



Not all debt is bad. Debt is your friend if used wisely. But it all depends on the person as each persons situation is unique.</blockquote>


Because it is a depreciating asset. Maybe in a few years when it is appreciating, but never leverage a depreciating asset. Sometimes a return of capital is more important than a return on capital.
 
[quote author="blackvault_cm" date=1232581013]WOW...I feel stupid. My wife is next to me reading all this and had to remind me that not that long ago I had a birthday and I'm really 26 not 25. Gosh...I don't even know how old I am.

Sorry to screw up your poll.</blockquote>


Geezer, that's called senility.
 
[quote author="Battie4" date=1232600551]VOC like 2 months ago we closed in Mid November .</blockquote>


Congrats on your purchase.



Battie, in another note, you said you were commuting 2 hours each way to Irvine. Does the commute work better for the other part of we? It's an item that we're currently dealing with in trying to find something that works well for both of us and has reasonable expectations for future job prospects.



IMHO, one of the great weaknesses now plaguing SoCal is the collapse of our transportation under congestion.
 
[quote author="Battie4" date=1232630880]Sorry the other part of we? not sure what that means.</blockquote>


Battie is obviously single, or a very disconnected married person.
 
o wow haha just got it. Umm not married so there is really only me to consider thank goodness. I barely have time for myself let alone anyone else at the moment
 
[quote author="Battie4" date=1232620891]yes Ciara I believe the home was actually sold/in escrow before but the buyer backed out at the end. Plan 4, and not to be a pain but Id rather prefer not to share the price although Im sure thru records you can find it.</blockquote>
A Ciara Plan 4? And you're 25 and single? What are you going to do with all that space? That's big even for medium-sized families!



Congrats on your purchase... you probably got a real good steal because they were discounting heavily near the end. We almost bought there due to sheer size of the homes but in the end... it wasn't the area for us.



Funny how this has turned into the Battie New Home Q&A Thread.
 
Yeah there is a lot of room, but it is a purchase for the future. Hopeful to be married sometime in the future. And they were discounting extremely heavy towards the end. Whatever they were asking for was not what they were really even close to getting. I remembered the first time I walked into that area and looked at the prices there were I think like 1.45m and at the time they were not discounting whatsoever no upgrades or anything. They essentially laughed when I gave them my initial offer (turns out out got the house for less than my initial offer). When I got the place the price was substantially lower and they included 200k in upgrades (in reality real price was like around 100k in upgrades), but it was a fairly good deal at the time.
 
Battie,



Not to burst your little bubble, but i have a little hard time believing what you are saying. Warren Buffet became a millionaire at the age of 30. Donald Trump at the age of 32. Buffet is the richest man in the world through his tremendous gift in investing in stocks. If you were to post something like you developed a revolutionary internet product like Facebook (Mark Zuckerberg) from your dormroom in UCLA, I may be much more inclined to believe what you are saying is true. However, you are telling me that you somehow got lucky in the stock market and your vocation is mostly in commercial real estate makes it harder for me to believe that you are capable of a $1 million dollar property 100% down. I can't even imagine affluent parents giving their 25 year old son $750,000 to buy a million dollar home. I am not saying what you are claiming is totally B.S., but i have serious doubts what you are saying is true.



Panda's .02 cents
 
[quote author="PANDA" date=1232755479]Battie,



Not to burst your little bubble, but i have a little hard time believing what you are saying. Warren Buffet became a millionaire at the age of 30. Donald Trump at the age of 32. Buffet is the richest man in the world through his tremendous gift in investing in stocks. If you were to post something like you developed a revolutionary internet product like Facebook (Mark Zuckerberg) from your dormroom in UCLA, I may be much more inclined to believe what you are saying is true. However, you are telling me that you somehow got lucky in the stock market and your vocation is mostly in commercial real estate makes it harder for me to believe that you are capable of a $1 million dollar property 100% down. I can't even imagine affluent parents giving their 25 year old son $750,000 to buy a million dollar home. I am not saying what you are claiming is totally B.S., but i have serious doubts what you are saying is true.



Panda's .02 cents</blockquote>


What r u talkin about???... ppl don't lie on teh intarwebs
 
Panda your welcome to believe whatever you want. Its your opinion and Im not trying to persuade anyone of anything. I know what Im worth and what I do so as long as Im content with that Im ok. Im not trying to prove to anyone that I have this amount of money or I have this much property or I have accomplished that. But like I said before everyone is entitled to their opinion.
 
its seriously worrisome when people don't even know anything about their own home purchase. to <em>forget</em> you have a loan is just mind boggling. but i'm not ready to call BS because unfortunately i've foudn this to be true from too many people. my guess would be battie had some help from the parental units, esp since <em>we</em> just closed and battie isn't married. wonder if bkshopr could identify he's asian based on the limited information provided so far. i know several people who bought homes... err, savings bought the home... err, money parents gave them bought them a home. but they make the monthly payments. i can't tell you how many times i've had this conversation unfortunately.



hey, so whats your monthly pymt then?

"only $2000 a month!"



but your house cost at least $1m. what'd you put down?

"umm... 40%?"



still doesnt jive. $2000 a month on a 600k loan?

"so maybe its like $2500?"



are you including your tax and hoa? do you impound your taxes?

"impound what? oh hoa is $200. so it's more like $2700"



still seems low. are you on an interest only loan?

"hmm, i think it's 30-yr fixed. thats the usual, right?"



are you asking me or do you know?

"um..."
 
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