12-31-2006, 08:26 AM
Greg and Kathy, this is a tough one. depending on where you live, property may increase 5-20% a year. yes, 20% a year. So you need to figure out if the 9% you put in an IRA, that may be matched 6% by an employer, making 15%, is better than maybe 20% on a house, and you won't be pissing away your rent money every month either.
Tough call. The house won't net you anything until you sell it, so you may get a huge net payoff at the end, but you will no longer have a roof over your heads either.
Bottom line though, is if your employer has any program in place where they give you free money, you have to be a complete drooling cleft palate moron to pass up on it. And do whatever you need to do to make a mortgage payment at the same time. Here in Seattle, today I couldn't qualify for the mortgage I got 4 years ago. If your income goes up, say 6% a year, and housing goes up 10% a year.....you figure that out....but don't wait to long....
Tough call. The house won't net you anything until you sell it, so you may get a huge net payoff at the end, but you will no longer have a roof over your heads either.
Bottom line though, is if your employer has any program in place where they give you free money, you have to be a complete drooling cleft palate moron to pass up on it. And do whatever you need to do to make a mortgage payment at the same time. Here in Seattle, today I couldn't qualify for the mortgage I got 4 years ago. If your income goes up, say 6% a year, and housing goes up 10% a year.....you figure that out....but don't wait to long....