I need help from the great minds @ Daily Paul
Submitted by Jefferson on Thu, 01/22/2009 - 20:04
I have a home that is paid for. I am afraid that the value will only go lower as the economic crisis hits harder.
I am considering selling it, and investing in something until this financial mess is over, and then repurchasing when the higher prices homes have taken a hit.
I am scared to invest in gold,because of my lack of knowledge, and fear that the prices are rigged.
I was thinking about a foreign currency ( not the Euro ) that might stay stable during this revamping of the world economy.
There are so many talented and intelligent people here, that I thought I would give this thread a shot.
What are your investment ideas?
»
That's a tough one. If I
That's a tough one.
If I were in your shoes I would likely take a long hard look at where I live. What will the situation look like in your area if the going gets really tough. What is the current tax situation and how do you expect it to change in the future? Is your state approaching insolvency? What about your local government?
It might be worth downsizing, if you can go smaller, in an area that will do well during a major downturn and will not fleece the people via taxes. Consider various freedoms/rights that are important to you as well (areas friendly to the 2nd Amendment, etc).
If you do go and downsize, take the cash you ended up with and spread it around. I would not suggest putting all your eggs into one basket.
...
Peter Schiff says to buy foreign stocks, especially Chinese
Because the reality is the NWO is most likely going to succeed where China is a much more advanced country than it is now and the West is going to continue to rot and deteriorate under Obama and it's Socialist leaders.
So if you want to make money you have to put it where it's advancing. Schiff says stocks in China pretty guarantee you a 20+% annual return no matter what currency you have or how bad society gets. You don't have to depend on renters or the American Gov confiscating or stealing it.
As Schiff also says GOLD is not an investment. If you 'invest' in gold you will just have to sell piece by piece until your broke. The point of Gold is store the value of your money so it doesn't rot away. Basically what you do is keep a certain amount of gold on hand that is not invested in stock or a sitting in a bank for emergencies (hyperinflation).
============================
Glen Beck -- An Exposed Enemy:
http://www.dailypaul.com/node/90198
Glenn Beck Supports NAFTA and taking your job:
http://www.dailypaul.com/node/86643
Keep the house
unless you're looking to escape the city for the counrty. I'm in the same situation of living in my paid-for house. Think of the beauties of actually owning your place. No bankers as co-owners. I do plan to cash this particular house out, but currently, I am accumulating cash (bankster bastards ate 1/2 of my accumulations and I was stupid to let them) so I can build my next house (At least dried-in) before I sell. I already have the land (40 acres) to build on. Funny thing on the housing market crash - it seem to be pretty spotty. There has been zero effect in my area. Probably one of the reasons for this is the wall-street subsidiary banks will not sell mortgages in my area (probably too small of a market), so most property that is financed here is through local banks & credit unions that hold their own paper. So the high-risk borrowers were turned away.
I don't think I could ever become a renter again - but then again, I'm sure I could never become an employee again. I am also sure I could never move back to a city (>25,000). I can pee outdoors, I can practice with my guns just by stepping outside, my dogs can run as they wish without concern for what other people may do to them (traffic, etc.), I'm fenced & gated and my house is about 300' above they gate - nobody can sneak up on me! My house doors have never been locked, my keys are always in my vehicles. Yep, there ain't no way I could move back into "civilization".
Ron Paul - Hope for America
Ron Paul - Hope for America
Peter Schiff
Sold his house and is renting a huge house that he could not afford other wise. He said that people can't sell their homes so they are just happy to be able to rent them to pay for the taxes. It is a renters market. I say sell the p house prices have not hit bottom. Another good thing is if things get real bad you can skip town with nothing to hold you down. Get out of debt. Good luck in whatever you decide.
Prepare & Share the Message of Freedom through Positive-Peaceful-Activism.
The best time to sell your home has passed
The house across the street sold for $249K in the bubble, was on the market for $135K and sold for (?) I'll know next month.
Cash is king and gold will test its lows.
ABC News had a NY Times columnist on this morning who said, "The banking meltdown is not over, it will take another 1.5 Trillion dollar bailout."
You can always sell your house when the market gets legs if you want.
Don't forget the baby boomer's want to downsize now too, and there will be a glut of big homes on the market.
I think it was Ron Paul that said---
Our home is OUR HOME and shouldn't be considered an investment. It is when people started buying homes AS an investment to resell for more in a few years, that we got into financial trouble.
I am a Realtor here in the Twin Cities.
Jefferson, your greatest asset is your home. Even more so that you have no debt!
Prices still have not hit bottom. Before Christmas, many builders were forced into bankruptcy leaving numerous spanking new, million, and half million dollar homes left unsold.
They can't even give them away at a third of original price!!!. This is what happens when overly inflated homes come tumbling down
.
It puts enormous downward pressure on previously owned homes.
As long as those new homes are still sitting there unsold, prices have to continue to drop drop drop until it hits a place where there is buying frenzy again. But, for that to happen, there has to be 'job stability', something that is leaving us right now. With so many people over their heads in credit card debt, they won't qualify for loans. We are gradually moving into the era of 'rent to own' and 'contract for deeds'.
Contract for deed is an area I am studying right now as far as my services are concerned. I simply will not take on seller's right now unless they are 'priced right' and are not afraid to come down a lot to make a sale.
New home sales always lead the way since we all compare price and value with 'new' versus 'older'.
If you put your house up for sale, you will lose a lot of 'cash value'.
I would say hang on to that home. Your home is your stability, your sanctuary, and a place to be yourself without hassles of living with others in apartment complexes.
Thank you...
I would not be losing cash value, as the market for homes in this price range is good, at least here in Austin, Tx.
I have the ability to stay rent free for the next year or so, with a friend that I work for.
My hope was to find one of these over priced homes and get a deal. Now I am considering renting. I just don't want to lose all the equity I have gained by paying it off over the last 15 yrs.
★★★★★★
"Life's tough......It's even tougher if you're stupid."
-John Wayne
http://www.ronpaulbrochure.com/
http://www.dailypaul.com/donate
Precious metals are probably
Precious metals are probably your best bet, more specifically gold and silver. Gold has out performed just about every commodity the past 6 months, once the currency starts inflating, it will be your last hope to maintain any sort of wealth. View gold (and silver) as storing wealth. The markets are rigged a little, but it can only be controlled for so long before the bankers let it go.
As for any other currency, that's really hard to say. Right now the US Dollar is the backing of all other currencies. I would say the Yuan, but for the last year or two they have moved with the USD at every move (which means their currency is pretty much our currency). But Chinese companies might be a good bet, but I don't know which ones to suggest (search for a Jim Rogers suggestion [he is a billionaire and decided to raise his daughter in China]).
I'd suggest looking into gold and silver. If you're looking to put your wealth somewhere to ride out the storm, that's your best bet, along with freeze-dried foods (since the cost is going to go way up).
Follow me on Twitter http://twitter.com/Ron2012Paul
What about the Khaliji?
Khaliji is the currency being put together by the major oil producing countries to protect themselves from the tumbling dollar.
The Khaliji is set to launch January 1, 2010. King Abdullah (Saudi Arabia) has ordered that it be ready by September 1. (why not September 11? why not!) It would have already been here, but Bush appearently threatened them. (with what? who's to say)
This information on the Khaliji comes from a French think tank. It is what I have, though the King Abdullah story comes from another analyst. Based on this information gold would not have a role and the Khaliji would be valued against a basket of currencies. However, within the last two months the Saudis made a huge purchase of bullion away from the quoted markets. Whether that is for personal wealth preservation or has something to do with plans for a Gulf States currency I do not know.
The Iranians who are not in on the formation of the Khaliji, but I'm sure will accept it for purchases of their oil, just a few days ago turned all their reserves from US dollars and Yen and Euros to Gold. Their simple statement was, "in light of the Inauguration, to protect ourselves with the changing circumstances in the US."
That's what I was thinking, either gold, or the yuan...
But alas, I am new to this kind of game.
Thanks for the input.
★★★★★★
"Life's tough......It's even tougher if you're stupid."
-John Wayne
http://www.ronpaulbrochure.com/
http://www.dailypaul.com/donate
You have to live somewhere
So if you are not paying a mortgage, then you are paying rent assuming you are not going to live in a tent.....
Tough call....Pay 3 years of rent and you have nothing to show for it. Pay 3 years of a mortgage and even if your property depreciates in price, you still have something provided you can afford to make the payments. Then there is the cost of maintaining a home which you do not have as a renter.
What state and city/town is your house in? I am on Long Island in NY and home prices here really haven't dropped all that much. You still need at least $450,000 to get yourself a decent house in a good neighborhood.
But, nothing beats living in your own home even if the bank truly owns it until you pay the mortgage off.
I do not want to get into the sovereign citizen issue....gets too complicated.
I would keep the house depending on your location. As for gold, get some NOW...all that you can afford. Believe me, that will help offset any loss from your house.
Good Luck...
___________________________________________________
A perfect God is not made imperfect by imperfect people.
Just hang on to the house
If it is paid for, keep it, sit back and relax. No need to unnecessarily complicate your life. There are sharks swimming in all the investment markets. If you're not used to dealing with the markets, they'll eat you alive.
Someone in your position might think it is very easy - sell the house, grow the money, and you could buy back two houses, or whatever. But just for a second, don't think of the upside - think of the downside. Whatever you think you might gain, you stand an equal if not greater chase of losing.
Playing in these markets for a novice is as good as gambling. Even for professionals - look how much the pros are losing.Look at the market bouncing like a yo-yo. This is how life can go on a yo-yo: Yo, you're up, yo, you've lost everything.
The first rule of gambling is only do it with money you can afford to lose.
WOW, a reply from the big chief!!!
So I take it you are not bullish on gold?
I am a newbie when it comes to investing, but I can see the potential of it
( the market ) being a ponzi scheme.
I was really thinking gold or foreign currency, not trading currencies, but just holding in that currency, with the hopes of it remaining stable.
I have some minor debt from credit cards (7k) and was hoping to at least lease it out, so that I could get completely out of debt.
The reason I was thinking of selling it was because I don't think I will ever get a higher dollar for it. I wasn't really hoping to play in the market and double it, but just to hold its value.
My hopes were to find a house with a bit of land in the country, during real hard times, at a bargain.
Anyway, thanks for the reply and input Michael.
★★★★★★
"Life's tough......It's even tougher if you're stupid."
-John Wayne
http://www.ronpaulbrochure.com/
http://www.dailypaul.com/donate
Gotta know when to hold 'em, know when to fold 'em, know
when to walk away, know when to run...
http://www.youtube.com/watch?v=kn481KcjvMo
Kenny can do it better I think!
New math!
What are you fightin' for?
Caught in the middle?
Freedom is only for those with the guts to defend it!
i agree. DO NOT SELL! you
i agree. DO NOT SELL! you NEED a place to live.
landlords are all going to raise their rents to cover costs. don't go there.
invest in: food, water, seeds, non - electric tools, guns, ammo, junk silver, and gold... and in that order.
i would ONLY advise selling if it is to buy a property out in the country (far, far away from bodies of water) and has 1-5 acres and you are going to build an underground home.
sell it now
and buy used motorhome.
No tax to pay on the land property taxes.....or after selling buy a used yacht move to warm all year round waters....winterize it...or you could just buy an alpinist tent live in the woods having your money converted to gold and silver hidden deep underground.
http://www.votenader.org/blog/2008/09/10/statement-to-ron-pa...
http://www.flickr.com/photos/57925480@N00/2660779139/sizes/l/
Website:
http://www.libertypoet.com/
Twitter:
http://twitter.com/LibertyPoet
"How can we justify to the unemployed and underemployed in the United States the incredible cost of maintaining a global empire?" - Dr. Ron Paul
Ditto! The only reason I
Ditto! The only reason I would sell (if you can sell) is to go from the higher property tax couty to a lower tax county. Consider costs of moving your valuable furniture and other junk that people normally have in their houses. Commissions on sales too.
I would say, stay put unless your property taxes are insane. If you have a roof over your head, everything else is secondary and can be taken care of.
Sell and invest in EuroPacific
Peter Schiff's company. www.europac.net
http://www.youtube.com/watch?v=dkIgDgs7FFA
Why sell if it's paid for?? You'll just have the agony of
another house payment if you do that.
As for gold, I believe it is a fairly safe investment but probably hard to find at this point.
Foreign currency? I think I let someone else have a crack at that one.
New math!
What are you fightin' for?
Caught in the middle?
Freedom is only for those with the guts to defend it!