wnaplay1647545503 Posted December 5, 2009 Report Share Posted December 5, 2009 I was thinking the other day about if I won the lottery. Not the big bucks just say enough to pay off my house. If someone handed you a check to pay off your house for the exact amount owed, would you do it, or buy something probably bigger and better due to the housing market allowing it. I figure for the price I payed for my house, I could get something nicer now that prices are down. Oh and you cant use the money for anything but paying the house off or buying a new one. What would you do? Quote Link to comment Share on other sites More sharing options...
evan9381 Posted December 5, 2009 Report Share Posted December 5, 2009 im in the dilema now...not from the lottery, but from a car accident. i may be getting enough to pay about 40% of my house off, and im debating if i should do that, or use it on improvements and a couple things for myself. Quote Link to comment Share on other sites More sharing options...
SpaceGhost Posted December 5, 2009 Report Share Posted December 5, 2009 Buy a new one, and rent the old one. Quote Link to comment Share on other sites More sharing options...
flippy1974 Posted December 5, 2009 Report Share Posted December 5, 2009 pay it off and be done with it . and start saving for a new one . Quote Link to comment Share on other sites More sharing options...
John Bruh Posted December 5, 2009 Report Share Posted December 5, 2009 pay off old one so its 100% free and clear, rent it out. Take money each month from rental and set aside for taxes, a couple hundred each month just incase for expences and the rest apply towards new house. Buy land and build the exact house you want. Quote Link to comment Share on other sites More sharing options...
Nitrousbird Posted December 5, 2009 Report Share Posted December 5, 2009 Buy a new one, and rent the old one. As someone who has a rental, and is in the process of fixing it up and selling it...that's an aweful idea. Rentals are only really good if you have a bunch with a management company, and a decent enough income to cost ratio. For me, I LOVE our house, so I'd pay it off, then do another loan to build my dream garage, so I could still have a tax deduction. Quote Link to comment Share on other sites More sharing options...
GRN96WS6 Posted December 5, 2009 Report Share Posted December 5, 2009 I'd pay off my house and save a lot of money so that when I sell it likely in a few years I'd have a nice chunk to put down on my custom built home. Quote Link to comment Share on other sites More sharing options...
SpaceGhost Posted December 5, 2009 Report Share Posted December 5, 2009 As someone who has a rental, and is in the process of fixing it up and selling it...that's an aweful idea. Rentals are only really good if you have a bunch with a management company, and a decent enough income to cost ratio. For me, I LOVE our house, so I'd pay it off, then do another loan to build my dream garage, so I could still have a tax deduction. My current house is all new. Entire exterior replaced( Siding and roof) less than 5 years, new garage door/track/springs, all appliances 2 years or newer, air conditioner/furnace, water heater 4 years or newer. Windows were new when we bought it. Floors and carpeting replaced in every room. We have no more fixing up to do on our house. Being in New Albany Schools, I could rent my house easy, and do nothing but collect rent for many years. I'd just have the air/furnace serviced once a year. And our payment on the house is less that 1k a month. This would not be a bad Idea for me. With our income, We could put 140k down on a 250k house and have an asset to boot. Even if we didn't have a tenant, we could swing the less than 2k a month payment on both houses combined. With a tenant, it would be sweet. Quote Link to comment Share on other sites More sharing options...
Linc5.0 Posted December 5, 2009 Report Share Posted December 5, 2009 Id pay mine off...I love my house and my Large yard! Bigger isnt always better. The said thing is if I paid my house off today, Id still have to pay $600 amonth just in prop taxes. Quote Link to comment Share on other sites More sharing options...
Nitrousbird Posted December 5, 2009 Report Share Posted December 5, 2009 My current house is all new. Entire exterior replaced( Siding and roof) less than 5 years, new garage door/track/springs, all appliances 2 years or newer, air conditioner/furnace, water heater 4 years or newer. Windows were new when we bought it. Floors and carpeting replaced in every room. We have no more fixing up to do on our house. Being in New Albany Schools, I could rent my house easy, and do nothing but collect rent for many years. I'd just have the air/furnace serviced once a year. And our payment on the house is less that 1k a month. This would not be a bad Idea for me. You just gave an even WORSE reason to rent a house. Renters are hard on homes...very hard. Even renters you think would be nice to them can still beat them up pretty nicely. Put simply, I am doing every single wall and floor in my entire rental...every one. I don't even get how so much dust got on the ceiling in a little over a year when I lived in the place for years and never dusted the ceiling once. The renters turned a clean house into one that smelled like a mix of smoke/cat piss/cat shit. From what I've gathered from someone who rents a couple of homes in the 200-300k value range, they tend to be people who pay on time at first, then end up being non-payers. There is a reason they can't afford a house payment in many cases (obviously plenty of exceptions out there, but you are playing the odds). I too thought that having a rental would be awesome. It is anything but that. Most people that rent are just happy for the tax deduction, and typically take a yearly loss on the income of the home. Those with multi-dwelling units, apartment complexes, or a number of homes are the ones that can make a reasonable amount of cash. Quote Link to comment Share on other sites More sharing options...
Bam Posted December 5, 2009 Report Share Posted December 5, 2009 Pay off my house, or sell my house and use the equity money + the new money to buy a house in a different place. I love my location now, my house now, and my house payment now. No way I would rent my house out, I just spent the past couple years getting it near mint inside and won't have renters tearing things up that I spent good time and money on. Given the economy, I'd probably pay my house off and be happy to have one less bill each month. If the economy was booming/on the up and up, I'd definitely consider upgrading more. Quote Link to comment Share on other sites More sharing options...
KillJoy Posted December 5, 2009 Report Share Posted December 5, 2009 I would pay off the House. I would then buy another house where I wanted. I would sit on the current house until the Market recovers. Once it sells, I would take that $$$ and apply it to the current Mortgage. :thumbup: KillJoy Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted December 6, 2009 Report Share Posted December 6, 2009 I'm keeping mine for now. We have less than 5yrs to go and I'm going to frame the deed when it's all done. Our mortgage isn't that high but I will still be glad to be completely debt free outside a small student loan from Capital Law School. When it's all said and done, money in the bank and investments wins and that's what I'm after. Quote Link to comment Share on other sites More sharing options...
KennyFKINPowerz Posted December 6, 2009 Report Share Posted December 6, 2009 Buy a new one, and rent the old one. +1 Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted December 6, 2009 Report Share Posted December 6, 2009 Buy and rent like Ben said. A nice deposit and a thorough background check can eliminate some of the issues. If you made a big enough down payment on the house in the beginning that you can rent it out and make a profit I say go for it. If I didnt make at least $350 a month extra renting it out I wouldnt do it. Quote Link to comment Share on other sites More sharing options...
BloodRed Posted December 6, 2009 Report Share Posted December 6, 2009 I love my house. I would pay it off, then use the extra money to pay of the rest of my loans. After that, improvements for the house and then saving to buy the land and to build a cabin some place. Quote Link to comment Share on other sites More sharing options...
gillbot Posted December 6, 2009 Report Share Posted December 6, 2009 pay it off and be done with it . and start saving for a new one . yep Quote Link to comment Share on other sites More sharing options...
Sam1647545489 Posted December 6, 2009 Report Share Posted December 6, 2009 Go to the sheriff sale auctions, buy 3 more smaller homes for dirty cheap and rent them out. Having one rental now is great to always have alil bit of cash coming in for doin nearly nothing. I went to the auction last friday and there were 3 house that went for 45k or below and were not in bad condition at all. Just alil cleaning up and they would be perfect for rentals. If you get enough rentals, with the money you make off them, they can pay for your house mortgage that you live in and whatever work you do is all profit. Quote Link to comment Share on other sites More sharing options...
Nitrousbird Posted December 7, 2009 Report Share Posted December 7, 2009 Go to the sheriff sale auctions, buy 3 more smaller homes for dirty cheap and rent them out. Having one rental now is great to always have alil bit of cash coming in for doin nearly nothing. I went to the auction last friday and there were 3 house that went for 45k or below and were not in bad condition at all. Just alil cleaning up and they would be perfect for rentals. If you get enough rentals, with the money you make off them, they can pay for your house mortgage that you live in and whatever work you do is all profit. Now there is where you make money...buying some cheap ass houses, and being a "slum lord" (though you really don't have to be a total slum lord, but just don't dump a bunch of cash into making the home nice). These nicer homes just aren't where the rental money is. Everyone that talks about "I'd rent my home and make all this money" are the same people who have never had a rental. It's work. People are hard on rentals, whether you think a big deposit and a background check makes any difference. Quote Link to comment Share on other sites More sharing options...
Putty Posted December 7, 2009 Report Share Posted December 7, 2009 I would not pay mine off. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted December 7, 2009 Report Share Posted December 7, 2009 Having to take the reigns to evict a tenant I know how much work it can be. The research, the lawsuits, the drama, etc. Over a 7 year renting period of a home I can say there was only one tenant that caused issues (one of them actually paid half to have a deck built.). If you are paying on a home the profits are small.. but if you keep it up until the home is paid off its an entirely different story. A $3000 profit per year can easily turn into $30000. You cant tell how someone will treat a house with a background check but a $1200 deposit was enough to lay a new floor and fix holes in drywall... Quote Link to comment Share on other sites More sharing options...
greg1647545532 Posted December 7, 2009 Report Share Posted December 7, 2009 I would not pay mine off. This. My interest rate is low enough that it wouldn't make sense to pay it off. But in any case, I love my house, so I'd stay in it and buy a summer/winter home somewhere. Maybe France. Quote Link to comment Share on other sites More sharing options...
Mowgli1647545497 Posted December 7, 2009 Report Share Posted December 7, 2009 Pay off your house. Buying another means you have to sell your current one. Remember if nicer homes are down, yours is going to be too. Buy it, save $$$, and sit on it til prices recover. No amounts of tax savings comes close to the interest you're giving away on payments, no matter how good a rate you've got. Pay off early. Quote Link to comment Share on other sites More sharing options...
schmuckingham Posted December 7, 2009 Report Share Posted December 7, 2009 sell this one and move back to Ashland Quote Link to comment Share on other sites More sharing options...
AWW$HEEET Posted December 7, 2009 Report Share Posted December 7, 2009 Take the $ and pay off all your debt starting with whatever has the highest interest rate. If that happens to be your house, then so be it. Quote Link to comment Share on other sites More sharing options...
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