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Finance or pay cash. New house

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  • #16
    Thanks for the advice
    house is 500ft from the beach but not in a flood zone but certainly could be impacted by a strong storm.
    not sure if it matters in the decision process but will probably only be in the house 5years or so. Conservative value is 4m when complete

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    • #17
      Pay cash and consider this part of your conservative bucket of investments. If you’re smart you already have some money in conservative investments anyway, so you could pull whats currently in conservative investments into more risky stuff. Problem solved. Take that 6% return (4% plus 2% windstorm) and consider it your conservative play.

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      • #18
        WBD is an extremely thoughtful contributor to this forum.

        I think in view of the OPs age and financial status paying cash is a wise idea. I bought my current home with cash. I was amazed at how much easier the process is as compared to getting a mortgage.

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        • #19
          Originally posted by Ronin1 View Post
          Thanks for the advice
          house is 500ft from the beach but not in a flood zone but certainly could be impacted by a strong storm.
          not sure if it matters in the decision process but will probably only be in the house 5years or so. Conservative value is 4m when complete
          500 feet from beach…….I might pay insurance

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          • #20
            The insurance question is separate irrespective of cash vs finance.imho. the risk is the property and 500' lots can happen along with the hurricane risk concern. All depends on your risk tolerance for the property there. Disclosure...we don't have earthquake insurance for any of our Cali properties.

            As far as anyone muting wbd.....that's a loss on them on a valuable, reasonable voice and contributor of lessons learned especially. Some prefer echo chambers though so to each their own.

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            • #21
              Also, why will you only be in the house 5 years?

              Is that correct?

              I would not build a 1M house and only stay 5 years but that is me.

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              • #22
                Probably will downsize once kids are out of college so that’s the 5 year mark or so. If the market stays similar price wise it will turn out to be an excellent return

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                • #23
                  Originally posted by Ronin1 View Post
                  Probably will downsize once kids are out of college so that’s the 5 year mark or so. If the market stays similar price wise it will turn out to be an excellent return
                  This seems foolish, for several reasons, and completely changes the calculus.

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                  • #24
                    Originally posted by Ronin1 View Post
                    Plan to work at least til 65, 10 more years , in a decreasing capacity eventually. I enjoy working and it’s relatively easy. Regarding windstorm it would take a direct Cat 4 plus storm to destroy this house so I think I would be ok with self insurance.
                    Exactly what happened to my house. But in your financial position, I can see the reason that you can be ok with self insuring.

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