RE: No retirement

["Stone, Brad V (TC)" <bvstone@xxxxxxxxxxxxxx>]

Donald,

I agree.  It seems that people are buying houses that there is no way they
can afford.  Then they wonder why they have no money.  Just because the bank
will give you x dollars doesn't mean you can afford it.  3 times gross is
pushing it when buying a house, but I've seen people (and am related to
some) that with a combined income of 60k or so are buying 200k houses
because the bank would give them the money.  

They seem to think that once you have bought a house you have "made it in
life".  Others buy a house for the tax deduction which is the _LAST_ reason
to buy a house.  (Lifestyle is always on top)  Others think that they will
automatically make money on the sale, and others like the feeling of having
equity, which really isn't around for 10-20 years.

If those people would have simply rented, and invested the difference
between owning a house (not just the mortgage payment, mind you) they would
have so much more liquid assets than the compared equity in a home.  But try
explain that to a baby boomer still thinking every house will make money...
There are rare occasions, but not like a few years ago.  

Gone are the days where you buy a house an automatically make 30% when
selling it.  There's nothing wrong with renting, and you'll look like a fool
if you buy a house and can't afford it.  And I'll simply sit there saying "I
told you so."

Thanks for letting me use the soapbox... I'm down now.

Kudos to Bruce Williams, the best AM talk show radio guy on the planet, from
whom I have learned a lot on the subject.  If it makes sense, it must be
true... (If it compiles, it must work.)

Bradley V. Stone
Taylor Corporation - OASIS Programmer/Analyst   
bvstone@taylorcorp.com


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