Thursday, October 13, 2005

School loan for Dependant Student

Author: thejoshua
Posted: Thu Sep 08, 2005 4:48 pm
Post subject: School loan for Dependant Student

I am not considered an independant student , it's up to me to pay for school, no mommy and daddy. My question was really, how likely it will be that I get approved for a loan. I had a charge off a couple years back, that I have paid now in full as of Feb 2004. I have a BOA CC that I've had for a year with no lates, and one circuit city card that I've had only for one month. The toal year cost of the school would be $15,050, so I would need a loan of approximately $10k. How likely is it I would get approved? I would greatly appreciate any help you could give me.

Author: lawyer2be371
Posted: Thu Sep 08, 2005 6:40 pm
Post subject: School loan for Dependant Student

Do you mean you are an independent student?

What state do you go to school in?

Do you currently live there?

What level are you, Freshman, etc...
Are you undergraduate or graduate?
Do you have Stafford Loans?
Or Perkins Loans?

Are you currently working, if so, have you been at your job more than two years?

Author: thejoshua
Posted: Thu Sep 08, 2005 6:47 pm
Post subject: School loan for Dependant Student

What I meant was I'm a dependant, even though I receive no help from my parents, because I'm not 24. The school is the aveda institute, it's in Charlotte NC. I am a resident but for the school it doesn't matter. The loan offered for the school is a sallie mae trade school loan. I am working but have only been at my current job 7 months, my last job was 3.5 years.

Author: lawyer2be371
Posted: Thu Sep 08, 2005 7:14 pm
Post subject: School loan for Dependant Student

When you say that you recieve no help from your parents, what exactly does that mean..

When you did your FAFSA, did you or did you not supply your parents tax return information...

And if so based on that information did they tell you that you were not eligible for any governmental loan program, or does the school you attend not participate in the gov student loan program.

The loan that you stated the school has, have you already applied, and been turned down, or are you asking what our your odds of being approved for that particular loan

Author: thejoshua
Posted: Thu Sep 08, 2005 9:03 pm
Post subject: School loan for Dependant Student

I'm trying to see if I have a shot at getting it. I have to use my parents info on my fafsa app. They however don't help me at all, with mine and there income I don't qualify.

Author: lawyer2be371
Posted: Thu Sep 08, 2005 9:27 pm
Post subject: School loan for Dependant Student

Well, If you could get your parents to cosign, the loan you might be able to get it Sallie Mae for the most part requires a cosigner, regardless to how good your credit is.....

Author: girlie
Posted: Thu Sep 08, 2005 10:49 pm
Post subject: School loan for Dependant Student

You might try calling the FASFA people (I had to call once its actually quite easy to get through and they are very helpful). Maybe there is some way you can appeal that rule. I have heard of other students appealing things like academic probation (not me because I am a total geek when it comes to school) and ending up with loans they were originally told they wouldnt get. Its just a matter of finding the loop hole, filling out the the right papers and jumping through their hoops. Maybe they have forms or something you can submit as proof that you completly support yourself.

Secondly if you havent had your parents fill out the FASFA with you as a dependent, you should try. The worse thing they can say is no. If your parents have a lot of assets and make a lot of money you probably wont get grants but you have to make some serious boat loads of money before you wont get federal student loans. I have heard of plenty of people not getting grants because of too much income - but loans are different.

Cindy

Author: thejoshua
Posted: Fri Sep 09, 2005 8:20 am
Post subject: School loan for Dependant Student

Getting them to co sign will not happen. I've already tried to do the fafsa as independant, I talked with fafsa and school, they basically said too bad. My parents have no money to begin with, they are military, I haven't had help from them for years.

Author: ladybug23
Posted: Sat Sep 10, 2005 2:09 pm
Post subject: Here's how I got around this . . . .

Hello --

I was in this same situation when I was first starting out. I was technically a dependent but receiving no support from parents. I guess in this scenario, your only option from the Feds in is a PLUS loan (loan your parents take out). I was able to get around this by having my mom's bank provide a letter saying that they would not approve her for a PLUS loan. Once it was demonstrated that my parents couldn't get a PLUS loan, I was able to take out the loans myself. This was at major state university.

I remember working with a school financial aid officer on this, so I would touch base with them to see if this would work.

Good luck!

Getting a Mortgage with Low Income

Author: creditbuilder
Posted: Sat May 07, 2005 7:50 pm
Post subject: getting a mortgage with low income

Is there any way for someone only making around 18K a year to get a mortgage without a big down payment? I would like to purchase about an 80-90k dollar house to rent out. My only bill is my car insurance, so I could afford to pay the mortgage myself during times when it's vacant. How can I get lenders to take a chance?

Author: Board Monitor
Board Monitor/ Administrator
Posted: Sun May 08, 2005 8:03 am
Post subject: getting a mortgage with low income

From what I understand these programs are usually not available for investment purposes (i.e. for rental property).
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314

Author: CreditCardGuru
Posted: Mon May 09, 2005 12:16 am
Post subject: Getting a Mortgage with Low Income

There is the old rule, what one doesn't know, won't hurt....don't let them know....LOL. I know here a lot of people get foreclosed houses really cheap.
_________________
I'm the Credit Card Guru, YOU BET

Author: homebuyer
Posted: Thu May 12, 2005 12:00 pm
Post subject: Getting a Mortgage with Low Income

CreditCardGuru wrote:
There is the old rule, what one doesn't know, won't hurt....don't let them know....LOL. I know here a lot of people get foreclosed houses really cheap.

The problem with that is if you have a tenant you need to evict for any reason, I don't think you would have legal recourse to collect back rent from them or anything if you are renting out illegally. If you turn them in for trashing your house or leaving without paying their rent, you will also be getting yourself in legal trouble for having a tenant in a home being financed by FHA or other types of loans that don't allow income properties.

So if you do rent out your new home illegally you will be screwing yourself in the end if something should happen.

The status of the loan (investment property vs. owner occupied) shouldn't have any effect on your ability to take your tenant to court in the event that you had to evict them and collect back rent. That's what the lease agreement would be used for in court. I'm not a legal expert but I highly doubt that the court would base their decision on the occupancy status of your mortgage; it's simply a matter of a tenant not paying rent. Here's your escape: say you bought a house with the intention of living in it but after the loan closed (because of life changes) you decided to rent it out. You're not required to refinance your home just because you've decided to rent it.

Creditbuilder, you shouldn't have a problem getting a loan for a house with little or no money down. Debt vs. Income, you wouldn't qualify so you would have to have a stated income loan. You can get 100% financing but your middle credit score will have to be about 720+. (There are a few other ways to do this even if your cs is <720.)

Author: creditcardguru
Posted: Tue Jul 19, 2005 7:49 pm
Post subject: Getting a Mortgage With Low Income

Someone may wish to verify this, but I once heard that the lender would require proof (a track record) that the house would rent for a particular amount per month before they would loan on the property. Otherwise, you could claim that you could rent it for $1,500 a month, while it really would only rent for $700.

Author: BestMortgageInfo
Posted: Fri Sep 09, 2005 4:13 pm
Post subject: Getting a Mortgage with Low Income

What happens is that the appraisal is a 2 part deal. 1) Normal value of the home 2) "Market rent analysis" which determines the rental value of the home.

For a lot of lenders, even if you are not currently getting that much rent, they go by the figure in the rent analysis

Charles
_________________
Charles Clark
www.bestmortgageinfo.com

Young person Getting Financially on Track

Author: thejoshua
Posted: Wed Jul 13, 2005 1:41 pm
Post subject: Young person getting financially on track

After tax income is $1950 after bills I have about $1100 remaining. I have $4000 in the bank and about $200 CC balance. I have bad credit which I'm trying to improve, and only one card with one year of on time payments, no lates. In December I will have an extra $400 per month, after my car is paid off and my rent drops $100 although my bank account will be empty from the car pay off. I am not building credit on the car however because it's not in my name. I'm also starting school part time online at a loca community college, which hopefully will eventually land me a better job. My goal is to buy a condo in the next few years which average about $200k for my area. As for work I run a small service & retail business for an owner here in town. I take care of everything regarding the business. Payroll, inventory, bill paying, interviews etc. etc. Should I be looking for more pay for my experience?

Any suggestions onhow to reach my condo goal? Should I be searching for a new job? How can I improve my credit? Any help would be awesome.

Author: Sarasotatony
Posted: Wed Jul 20, 2005 9:35 pm
Post subject: Young person Getting financially on track

You are doing a lot better than I was at 22! Don't apply for any new credit for another year or two. Go to each of the three credit bureaus and buy your credit score ($6.95 for Equifax and $5.95 for the other two). Don't sign up for those credit monitoring deals--they are unnecessary. Don't forget: You can now get a free credit report from each of the bureaus. For great advice that helped me build up my credit, go to: www.bankrate.com Type in whatever key words in the search box and you will have all the financial information you need. Also: Tivo or watch the Suze Orman Show on Saturday night (MSNBC) (8:00 pm-10:00 pm eastern). She gives invaluable advice. Good luck!

Author: thejoshua
Posted: Thu Jul 21, 2005 2:58 pm
Post subject: young person getting financially on track

I actually just got a circuit city card and bought a TV interest free for two years, hopefull that helps out my credit a bit more.

Author: PFFrank
Posted: Fri Jul 22, 2005 7:15 pm
Post subject: young person getting financially on track

thejoshua wrote:
I actually just got a circuit city card and bought a TV interest free for two years, hopefull that helps out my credit a bit more.

Be VERY careful with this. If there is minimum monthly payment due, DO NOT BE LATE. And, if at all possible, pay off the entire balance before the interest free period is up. You'll have to read the details of the agreement, but usually if you are late with a monthly payment, the "interest-free" turns to 20%+ interest rate. Also, if the entire amount financed is not paid off by the end of the two years, they then tack on ALL THE ACCUMULATING INTEREST OVER THE LAST TWO YEARS.

So, please, please, PLEASE be careful and pay off the balance sooner than later.
_________________
PFFrank.com
Personal Finance, Frankly Speaking

Where to get a Secured Loan

Author: needaloan
Posted: Mon Aug 22, 2005 9:23 pm
Post subject: Secured Loan

What popular bank branches offer secured loans, I am having trouble finding one?

Author: CompJock24
Posted: Tue Aug 23, 2005 6:33 am
Post subject: Secured loan

needaloan,

I personally just applied for an used auto loan. On the application it had a check box that asked for which type of loan I was applying for:

LOC (line of credit), Unsecured, Secured, or Credit Card. Under the Unsecured check box, it asks for how much I am requesting and for what "Purpose", however, under the Secured check box, it asks for how much I am requesting and what is the "Collateral"! Naturally, because I am taking out a used auto loan, my collateral would be the used car. Why? If I don't pay back my loan, the bank will take the car (reposess) away from me. That's what makes the loan secure - the bank will get something in return if I don't pay them back; as opposed to an unsecured loan (ie, personal loan) the bank has nothing to gain from you if you don't pay them back (hence the higher interest rates many will pay for a personal loan). But then again, I can't confirm this, but I think you might also be able to take out a secured personal loan as well, using your savings assets as your collateral...not 100% on that one though.

As far as what popular branches? Wachovia, Bank of America, SunTrust, Banco Popular, Third Fifth Bank, Wells Fargo....but I don't recommend doing this as you'll pay higher interest rates for these bigger "more popular" banks. I suggest joining your local Credit Union. They offer lower rates on all types of loans and best of all, as a member, you have co-ownership of the bank. To find a credit union nearest you, visit the Nations Credit Union Administration (NCUA).

Experiences with Wachovia

Author: CreditCardGuru
Posted: Wed Apr 20, 2005 11:44 pm
Post subject: Wachovia.....

I had a bad experience with Wachovia and I wanted to know if anybody else has any thoughts on Wachovia, hence they say they are ranked number one in customer satisfaction, and I doubt that. Thing is I used to work for them and they were nice to me at first, but it's like once I quit my job they wanted to be jerks to me....maybe that's just coincidence, but heck you never know.

Author: fire3000
Posted: Mon Aug 22, 2005 1:24 pm
Post subject: Wachovia

They treated me very well. I recently closed out two IRA accounts and I received my check in less than 5 minutes. Wachovia just acquired Southtrust bank. Ten months ago Southtrust doubled my existing home equity line of credit and did not charge me anything at all in fees or closing costs (I said I would not agree to any fees). Wachovia has lots of branches in my state of Virginia.

Budgeting Idea for Over Spenders

CreditCardGuru
Posted: Wed Apr 20, 2005 11:40 pm
Post subject: Budgeting for over Spending

I run a debt management business alongside my job at B of A, and I have been giving this tip out for a while and people seem to love it as it works for them......sounds kind of stupid at first, but after you use it and experience it, it REALLY works....

Open multiple checking accounts, and deposit into all of them, spreading your money around, why this works is like a psychology game with yourself as with one account you just see this huge lump sum and want to spend it....not good....but with the three accounts you see three smaller numbers and tend to be more cautious with your money.....

Problems with Vonage Phone Service

Author: Guest
Posted: Wed Feb 11, 2004 5:58 pm
Post subject: Vonage Phone Service

Anyone using their service? If so, does it work well?

Author: GeoUSA
Posted: Fri Jul 23, 2004 3:09 pm
Post subject: Vonage Phone Service

I have had very good results from Vonage (www.vonage.com). I cancelled home telephone service through Verizon that ran about $36/month including taxes. I opted for Vonage's $14.99/month plan which includes many features and 500 minutes of calls to anywhere in the US or Canada.

At this time, very few taxes are added to Voice Over IP telephone service. There are just a few issues -- although none were a problem for me:

You must have high speed Cable or DSL Internet service

Despite what Vonage says, you may not be able to keep your existing number

You will need to connect your telephones to the Vonage device near your broadband modem or hire a company to extend the connection into your home's existing telephone jacks. This will especially be an issue if you have a home security system or Tivo-type of device.

Vonage requires that you dial 1 and the area code before all numbers (even local ones).

Board Monitor
Board Monitor/ Administrator
Posted: Tue Jul 27, 2004 8:44 am
Post subject: Vonage Phone Service

I have been thinking about Vonage, but was concerned about how it would affect our alarm system. How exactly did you handle this problem?
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314

Author: HJM
Posted: Fri Jul 30, 2004 10:48 am
Post subject: Vonage Phone Service

GeoUSA wrote:
You must have high speed Cable or DSL Internet service

I think it is pointless to get Vonage if one has DSL because one has already paid local phone company for a phone line in order get DSL in the first place. I would just get the very basic phone service, then use long distance service like OneSuite.com which only charge 2.5 c per min.

Author: GeoUSA
Posted: Fri Aug 13, 2004 2:15 pm
Post subject: vonage phone service

Hi HJM. Verizon (one DSL vendor) has recently dropped their surcharge for customers who opt not to use their telephone service.

Curtis, my solution was to crawl through the attic and run a telephone cable from my computer room and then downstairs through closets to the television room. The new telephone cable provides service to my Tivo. I considered a wireless solution or an electrical outlet jack but there were numerous reports of people having problems with those systems. You can imagine the conversion from digital to analog and back again could make modem type connections spotty. Running the cable took a couple of hours but was worthwhile.

Board Monitor
Board Monitor/ Administrator
Posted: Sat Aug 14, 2004 9:25 am
Post subject: Vonage

Thanks for your reply. Are you saying that this is the what you had to do to make the alarm system work?
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314

Author GeoUSA
Posted: Fri Oct 22, 2004 2:09 pm
Post subject: vonagae

My Tivo is a device for recording television programs to a hard drive. It allows me to watch TV on my schedule and fast forward through commercials.

I have some updates on Vonage service. They have updated their system, so I no longer have to dial 1 followed by the area code for local numbers. Yea! It doesn't sound like much of a problem, but made it impossible to dial from the caller ID display on our telephones.

Also Tivo began to have problems dialing out through the Vonage line. I ended up buying a new generation Tivo device that utilizes the wireless network in the house for "phoning home."

Also, additional taxes are being added to Vonage and other VOIP telephone providers. My $14.99 monthly bill is up to about $17.00. This is still a bargain compared to the $36 or so the telephone cost through Verizon.

Board Monitor
Board Monitor/ Administrator
Posted: Sun Oct 24, 2004 4:00 pm
Post subject: vonage

Thanks for your update GeoUSA. Interesting.
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314

Author: nixuzer
Posted: Thu Apr 28, 2005 9:07 pm
Post subject: vonage

Hello all.

We've been using on VoIP (primarily) and cell phones for over 6 months. We decided to go with AT & T CallVantage for a couple of reasons (however we would recommend 3 or 4 different VoIP vendors) but have also heard good things about Vonage.

If you're really interested you should probably spend some time on dslreports. They have some very informed consumers there and have reviews of all of the providers that I've ever come across.

The biggest issue for us has been that we had some Quality of Service (a.k.a QoS) issues but once I spent about 20 minutes on the phone with them and rebooted our Telephone Adapter (a.k.a. TA) service has been pretty good. We use Road Runner Cable (standard, not the enhanced service) and since our RR has always been really dependable we have not experienced any major issues. Every once in awhile they push an update to the TA they don't tell us about but a quick reboot when we're not able to make a call and we're good to go (this has happened twice in 6 months). My total bill with taxes is $36 which includes unlimited local and long distance.

Quote:
Also, additional taxes are being added to Vonage and other VOIP telephone providers. My $14.99 monthly bill is up to about $17.00. This is still a bargain compared to the $36 or so the telephone cost through Verizon.

GeoUSA, this is the Basic 500 plan correct? Or did you get some special promo for their unlimited local and long distance?

Author: creditcardguru
Posted: Fri Apr 29, 2005 12:06 pm
Post subject: vonage

I remember reading a while back that it is good, but since it is new still has problems, so I wouldnt make it your primary phone, I remember reading something about 911 not working and the possibility over time that since this is new tapping might be a problem, since it goes over the Internet.
_________________
I'm the Credit Card Guru, YOU BET

Author: nixuzer
Posted: Fri Apr 29, 2005 12:29 pm
Post subject: Vonage Phone Service

CreditCardGuru wrote:
I remember reading a while back that it is good, but since it is new still has problems, so I wouldnt make it your primary phone, I remember reading something about 911 not working and the possibility over time that since this is new tapping might be a problem, since it goes over the Internet.

Actually the 911 does forward to the closest 'emergency' center not a 911 operator. This means that it might forward you to the firehouse that doesn't know they have an incoming 911 call so they're not quite as equipped as a 'true' 911 operator.

We've trained the kids that if they ever need to call 911 to use our cell phones instead. It just comes down to what you are familiar with.

Author: CreditCardGuru
Posted: Fri Apr 29, 2005 6:30 pm
Post subject: vonage

A little bit about Vonage and all those Unlimited calling things....they are VoIP...here's a link at the FCC where you can get info about it.

http://www.fcc.gov/voip/
_________________
I'm the Credit Card Guru, YOU BET

Author: nixuzer
Posted: Fri Apr 29, 2005 10:09 pm
Post subject: vonage

CreditCardGuru wrote:
A little bit about Vonage and all those Unlimited calling things....they are VoIP...here's a link at the FCC where you can get info about it.

http://www.fcc.gov/voip/

Great link to teach some of the basics, there is a couple of small errors but nothing earth shattering. One example is the diagram shows the Phone Adapter (a.k.a. Telephone Adapter or TA) connecting directly to the internet. It actually connects to your High-Speed Internet Modem using a standard network cable and then out to the internet. Also your computer and phone connect to the TA (although the TA has different jacks for each). There are other 'built-in' advantages like all of the TAs I've seen has a built in firewall (to keep the bad, bad computer geeks out) and the wired models are usually free with sign-up. So you get a $40-$80 piece of equipment for free and it allows you to hook up 2-4 computers in addition to your phone.

Author: Iris
Posted: Fri May 20, 2005 5:58 pm
Post subject: Re: Vonage Phone Service

I haven't used vonage, but I've been using SunRocket for about three months now, without any significant problems.

$199/yr for free unlimited long distance to US and Canada, unlimited usage, includes callerid, call waiting, voicemail and all other features Ma Bell likes to charge extra for.

I also found an offer code for a set of two free Uniden cordless phones

I Bond Savings Rate

Board Monitor
Board Monitor/ Administrator
Posted: Mon May 02, 2005 2:16 pm
Post subject: New Ibond Savings Rate

I just heard on the radio that the Ibond is now paying over 4%. Not bad in today's market. Any thoughts?
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314

Author: fire3000
Posted: Tue Jul 26, 2005 10:00 am
Post subject: I-Bonds

Yes, that is the current rate. It adjusts every six months and is based on the consumer price index (CPI). I buy the maximum allowed amount of $30,000 every year. I also am also buying $75,000 in TIPS this week. Interest from I-bonds is tax deferred until they are cashed in while TIPS interest is taxible each year. TIPS are the Treasury inflation adjusted savings bonds. I buy my bonds on-line at treasurydirect.gov. In October I will payoff over $85,000 in low rate credit card debt.

Can't get a Checking Account

Author: elfygrrl
Posted: Tue Jul 19, 2005 10:12 pm
Post subject: Can't get a checking account

Hi everybody,
This site's great. I've learned so much already. Thanks for all the free info.
Here's my problem. My credit score is in the early 600's and I have a discharged bankrupcy from 6 yrs ago. I've recently started getting credit cards again and I'm trying to do it right this time.

The only problem is that I'm having a hard time getting a checking account.
Any suggestions? Is it easier if I go into the bank rather than applying online?
I would much rather do it online. It's much easier than being rejected in person.

Author: maddybeagle
Posted: Tue Jul 19, 2005 10:18 pm
Post subject: Can't get a Checking account

why is hard to get a checking account. I started a checking account out of college (had no credit then) and was able to start. Try a credit union. Seems as long as you have money to deposit you can start.

Author: Darrell
Posted: Tue Jul 19, 2005 11:39 pm
Post subject: Can't get a Checking Account

You don't have something negative showing in ChexSystems do you?

Check out this site: https://www.consumerdebit.com/consumerinfo/us/en/index.htm

It's a resource on how to go about finding info on this.

Author: Sarasotatony
Posted: Wed Jul 20, 2005 11:50 am
Post subject: Can't Get A Checking Account

I ran into the same problem about fifteen years ago. Banks that have many branches around the state, or in other states will run a credit check and often reject those with credit problems. Go to a "Mom and Pop" (or small bank) in your town and you should have no problem opening a checking account. Also open a savings account there. Then after you are with them one year, apply for a $1,000 personal loan. This looks very good on your credit report. Don't apply for any other credit (especially credit cards) for a year or so. You will be on your way to reestablishing your credit. Also: Say nothing about the bankruptcy. Good luck!

Buying a House: Things you Should Consider

Author: Alexander
Posted: Wed May 04, 2005 4:12 pm
Post subject: Buying a House

The coming housing bubble

Homes: U.K. went cold; U.S. could too, Money.com, 4 May 05

"Between the fourth quarter of 2000 and 2004, U.K. home prices increased 88 percent, on average, according to the Halifax house price index. U.S. home prices, meanwhile, increased 35 percent during that time, according to the National Association of Realtors.

The U.K. housing market started to gain steam in the late 1990s, beginning with the higher-priced properties in London and spilling over to virtually every region and every type of housing. "Buy-to-let" became all the rage as investors shifted funds from their traditional portfolios into rental properties. . . .

"It was rising at a 20 percent annual rate and then suddenly stopped in its tracks," said John Calverley, chief economist and strategist of American Express Bank in London and author of "Bubbles and How to Survive Them."

While economists disagree on whether the U.K. is experiencing a temporary lull or the beginning of a housing bust, buyers there seem to be waking up to the idea that double-digit price gains can't last forever. Prices overall have been flat, with small increases in some areas and declines in others. . . .

"My sense is that the U.K. market is two or three years ahead of the U.S. market," said Calverley. Every market has its own dynamic, but there are lessons to be learned from what's playing out across the pond. . . .

Yet, U.K. buyers -- who typically finance with monthly adjustable-rate loans -- did eventually take notice after the Bank of England started raising rates. By most measures, housing prices started declining in June 2004 after the bank's third quarter-point rate increase. . . .

According to the Council of Mortgage Lenders, lending to "buy-to-let" investors dropped 18 percent between the first and second half of 2004 – compared with only a 3 percent drop for owner-occupied buyers. During that time, the number of such investors unable to meet their mortgage payments increased 50 percent.

"People were buying thinking they'd rent it out and make 15 or 20 percent appreciation, but now they're left with only the rental yield," said Stansfield at Capital Economics."
http://money.cnn.com/2005/05/03/real_estate/investment_prop/lessons/index.htm

Board Monitor
Board Monitor/ Administrator
Posted: Thu May 05, 2005 8:47 am
Post subject: Buying a House

Interesting. Thanks for the post!
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314

Author: nixuzer
Posted: Thu May 05, 2005 8:55 pm
Post subject: Buying a House

Since I'm not sure of the tax benefits and implications of home ownership outside the U.S. this is intended to address people living in the U.S.

A group of guys that I meet with have actually been discussing this lately and we've arrived at different conclusions but the issue has been, Is a home a good or mediocre investment? Here are a few links that are food for thought, some relate to what some people are saying is the coming bust of the housing market in the U.S. The interesting part for me is that coming from the tech sector I'm starting to see the same statements being made by 'real estate gurus' that were being made by 'tech gurus' prior to the equity market crash a few years back (see 4th link)....just replace tech/computers with the term real estate/rental properties.

Like anything it is a speculative situation that you need to determine which speculators you agree with. As I've said in other posts...stay debt free (or get debt free), keep a 3-6 month emergency fund and never charge money on your credit cards you can't afford to write a check for right now..the only exception being a reasonable home mortgage. There are rare circumstances that will violate this (like an unexpected, expensive health crisis that you don't have coverage for, been there done that) but those should be a small fraction of the population and Ethan Allen's 'once in a lifetime showroom sale' does not qualify as an emergency that you must use your credit card for.

Don't get trapped in a housing bubble;
http://moneycentral.msn.com/content/Banking/Homebuyingguide/P37631.asp

Housing bubble is real, report says
http://moneycentral.msn.com/content/invest/extra/P87483.asp

Is your house really a good investment?
http://www.smartmoney.com/mag/index.cfm?story=feb02-investment

Housing mania will end in tears
http://moneycentral.msn.com/content/P108402.asp

In a market this hot, home buyers and investors can easily get singed. Here's what could happen. Plus: Tips to get you through unscathed.
http://biz.yahoo.com/special/realest05_article1.html

The Buy vs. Rent Decision
http://biz.yahoo.com/pfg/e10buyrent/

Rent vs Buy Calculator
http://home-equity.interest.com/content/calculators/rentvsbuy.asp

Growth Calculator (good for comparing different investments)
http://www.fidelity.ca/fidelity/cda/ext_app/growth_calculator_eng/0,,,00.html

Board Monitor
Board Monitor/ Administrator
Posted: Fri May 06, 2005 8:26 am
Post subject: Buying a House

Great post! Enjoyed the links. I think the one exception to this would be buying houses as rental property. My wife and I are seriously looking in to this option.
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314

Author: Alexander
Posted: Mon May 23, 2005 12:39 pm
Post subject: Buying a House

Good links. Thanks!

I think there is money to be made once the bubble bursts. I think that will be around 2007, but it might be a bit later. In areas where the price appreciation has not gone wild there will always be individual home owners who will sell at a discount. If we get a small recession or even just an economic slowdown along with rising interest rates people who handle their debt badly may not be able to file bankruptcy while they still have a job due to the new bankruptcy laws so there will be foreclosures even in nice areas.

Last edited by Alexander on Tue May 24, 2005 9:04 pm; edited 1 time in total

Author: nixuzer
Posted: Mon May 23, 2005 12:57 pm
Post subject: Buying a House

Alexander wrote:

I think that will be around 2007, but it might be a bit later.

Why would you say that it will be 2007? Also, what would cause you to believe that there will be a burst of the bubble?

Some more links supporting/refuting the housing bubble bursting:
After the Housing Boom
http://www.businessweek.com/magazine/content/05_15/b3928001_mz001.htm

Fed Watch: The Fed and the Housing Bubble
http://economistsview.blogspot.com/2005/05/fed-watch-fed-and-housing-bubble.html

As Prices Rise, Homeowners Go Deep in Debt to Buy Real Estate
http://bigpicture.typepad.com/comments/2005/05/as_prices_rise_.html

Price Bubble Won't Burst
http://www.realtor.org/rmomag.nsf/pages/indwatch200207152

More Than a Bubble Keeps Housing Prices Sky-High
http://www.ksg.harvard.edu/news/opeds/2004/retsinas_bubble_more_lat_042004.htm
_________________
"Failure is not fatal. Only failure to get back up is." :: John C. Maxwell

Author Alexander
Posted: Mon May 23, 2005 1:25 pm
Post subject: Buying a House

If the federal government was running close to a balanced budget we would be due for our next small recession at the end of the decade but I think it will be sooner. Greenspan seems to want to get the housing bubble to burst before he retires which in Jan 2006 so if the fed keeps raising rates the stock market will slide first and then we may see a small economic down turn in the whole US economy in a year or two that will cause the bubble to pop on the costs.

In the heartland and the south east there may not be a bubble but their may be a period where home prices will be flat for several years.

There are other factors that can cause the housing bubble to burst. If China un-pegs currency and gets into economic problems or another major terrorist attack happens in the US that could be the event that stops the irrational exuberance. The normal price of a home almost always goes up 1% beyond inflation in the long term. Inflation has been around 2.5% for the last 5 years or so. So, the appreciation of a home should be 3.5% on average. Any place where the price has been going up over say 6% would be a place that could see a bubble bursting.

Author: nixuzer
Posted: Mon May 23, 2005 1:54 pm
Post subject: Buying a House

Alexander wrote:
Greenspan seems to want to get the housing bubble to burst before he retires

Would you mind providing some links to the fact that he wants to burst the housing bubble? I was aware of the fact that he was retiring but not that he wanted to burst the bubble (whether perceived or real).

The only thing I've seen is that he has stated that he sees some 'frothing' in the housing market and localized bubbles but not that he wishes to sqash it. Granted he has to be careful what he says (can anyone see him saying, "Yea there is a really bad housing bubble and everyone should sell now, refinance or get their debt down before this baby goes bad"...not likely)
I can't say that I can find a link that states that Greenspan intends to burst the housing bubble. You might check out Creamers site: He seems to think that Greenspan will keep raising rates until the housing bubble is burst even if it means making the stock market go down.
http://find.thestreet.com/cgi-bin/texis/rmyradio

In general, the price of a house rises exactly 1% beyond inflation over the long term and inflation is at about 3.25% right now and has been at about 2.5% for the last 5 years or so. So any market that is seeing price appreciation above 4% is seeing unrealistic price appreciation.

There are several factors that make me think that the bubble will burst soon.

1. Inflation up. Especially energy prices.
2. Productivity down. Declines in education and engineering prominence combined with the PC revolution ending.
3. A flat yield curve that is about to become inverted.
4. The bankruptcy reform bill is about to increase the number of home repossessions in up-scale neighborhoods.
5. Economic insanity. People are living beyond their means, charging more, and saving less.
6. The federal deficit. This will cause upward pressure in interest rates.

Home sales soar to record
"The median price of an existing home topped $200,000 for the first time, climbing to $206,000 nationwide, up about 7 percent from March and 15 percent from a year earlier. Half of existing homes sold above the median and half below. "
http://money.cnn.com/2005/05/24/news/economy/homesales/index.htm

Minutes show energy prices concerned Fed
http://customwire.ap.org/dynamic/stories/F/FED_MINUTES?SITE=VANOV&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2005-05-24-14-04-38

http://money.cnn.com/2005/05/24/markets/markets_newyork/index.htm

Greenspan Calls Housing `Speculation' Unsustainable (Update2)
http://quote.bloomberg.com/apps/news?pid=10000006&sid=al0s_e02NpsE&refer=home

Bubble bubble toil and trouble: duuhhhh edition

"The gap between income and Massachusetts home prices is the widest since the peak of the 1980s housing bubble, and that gap, intensified by rising interest rates, should cause home prices to dip later this year, according to an economic forecast released yesterday."
http://bluemassgroup.typepad.com/blue_mass_group/2005/05/bubble_bubble_t.html

The Fed sees bubbles -- and keeps them secret
http://moneycentral.msn.com/content/P108996.asp

The Fed Starts to Show Concern Over Bubble
http://www.realestatejournal.com/buysell/salestrends/20050519-wessel.html

Fed Governor - no housing bubble but sharp price falls in some areas
http://housing-bubble.com/news/fed-housing-bubble-010303.html

Fed voices concern at signs of a housing bubble
http://www.post-gazette.com/pg/05139/507226.stm

Greenspan Sees Bubbles in Housing
http://www.latimes.com/business/la-fi-green21may21,1,3482524.story?coll=la-headlines-business

Popping the Housing Bubble
http://www.qando.net/details.aspx?Entry=1686

San Francisco Bay Area Housing Crash Continues
http://patrick.net/housing/crash.html

Yield Curve Flattens Into "Danger Zone"
http://thehousingbubble.blogspot.com/2005/05/yield-curve-flattens-into-danger-zone.html

Historical Yield Curve
http://fixedincome.fidelity.com/fi/FIHistoricalYield

Housing, hedge funds spur bubble worries
Some experts fear low interest rates may have pumped too much cash into global markets
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/05/22/BUG5OCSNES1.DTL

Revolving consumer credit hovered above the $800 billion milestone in February.
http://www.cardweb.com/cardtrak/news/2005/april/7a.html

The Godzilla Economy
http://dsiegel.blogs.com/thoughts/2005/03/the_godzilla_ec.html

Moor inflation predictor:
http://fintrend.com/ftf/images/charts/mip20050518.gif

Author: Alexander
Posted: Wed May 25, 2005 11:56 am
Post subject: Buying a House

NPR Radio Program

Real Estate Reality Check

"For many Americans a house has become more than a home. It's become a personal ATM, a source of easy money.

The latest housing sales numbers show the country is still in the grips of feverish real estate boom that's driven the average price of a single family home up 50 percent. That means home equity loans and refinancing have become the new way to pay for vacations or college.

This frenzy has some economists warning that what goes up must come down. And if it does drop -- it's going to come down on top of a lot of people who are stretched far beyond their means. And since real estate helps the overall economy by giving consumers more money to spend...a market crash could hit home for all of us."
http://www.theconnection.org/shows/2005/05/20050525_a_main.asp

Author: nixuzer
Posted: Wed May 25, 2005 7:01 pm
Post subject: Re: OK

Alexander wrote:

The Fed sees bubbles -- and keeps them secret
http://moneycentral.msn.com/content/P108996.asp

All of the links you provided in the post were interesting but this one especially interested me. This has continued to be interesting as of course these poeple aren't going to say things are looking bad because they don't want to cause 'widespread panic.' As I seem to recall Greenspan saying before (but can't seem to locate it at the moment) sometimes it is hard to see problems until after they've occurred.

For some reason this whole thread got me thinking about a contract I was back in 1999-2000 where the company I was working for was partially owned by Enron. Everyone was converting their investments into Enron stock (or worse...borrowing to invest) because it was doing so well. A lilttle while after the 'announcement' I made a call to an old acquaintance up there to see how everyone was doing, he said the building was 'very quiet.' Fortunately I didn't get caught up in the hoopla and instead just kept working on getting debt free and getting some money for my emergency fund. Same mindset....If everyone is doing it maybe it is time to step back and look at the numbers which, Alexander, you've done a great job of starting to expose people to through the links in your posts. Time will tell what the reality of the situation is, hopefully for the sake of people that are overleveraged it is a somewhat soft landing.
_________________
"Failure is not fatal. Only failure to get back up is." :: John C. Maxwell

Author: nixuzer
Posted: Fri May 27, 2005 9:11 am
Post subject: The real risks of
investing in real estate

Here's another good article that touches on the issues related to the overconfidence in the mortgage industry. It has some good, common sense approaches if you are going to become a real estate investor in the current market.

1. Watch your cash flow
2. Mind the cap
3. Don’t be in a rush
4. Know who’s paying
5. Have an exit strategy
6. Make sure it’s for you
_________________
"Failure is not fatal. Only failure to get back up is." :: John C. Maxwell

Author: nixuzer
Posted: Fri May 27, 2005 10:02 pm
Post subject: Buying a House

You know, it's hard not to keep the articles a coming. This is a 3 part article that is pretty interesting so far.

Real Estate Bubble
_________________
"Failure is not fatal. Only failure to get back up is." :: John C. Maxwell

Author: nixuzer
Posted: Mon Jun 20, 2005 9:51 am
Post subject: Buying a House

Just stumbled across this, looks like the Feds also see a problem with the extreme overlending to uncreditworthy people, this was back in May.

http://www.federalreserve.gov/boarddocs/press/bcreg/2005/20050516/attachment.pdf
_________________
"Failure is not fatal. Only failure to get back up is." :: John C. Maxwell

Author: nixuzer
Posted: Wed Jul 06, 2005 6:18 pm
Post subject: Buying a House

The humor just won't stop

http://www.usatoday.com/money/perfi/housing/2005-07-05-million-dollar-trailers_x.htm
_________________
"Failure is not fatal. Only failure to get back up is." :: John C. Maxwell

Mastercard Gift Cards

Author: robertmat
Posted: Wed Feb 02, 2005 7:32 pm
Post subject: Mastercard Gift cards

I just realized that a SwiftGift Mastercard Gift Card I received had expired. After looking into this the experation date was for only 3 months and I was shocked. I lost the balance of almost $100.

The trend in Gift Certificates these days is no experation date (Best Buy, etc...).

I would advise not giving these as gifts or promotions.

This is just more example of credit card companies gouging the consumer, who has no recourse.

Author: Polonius
Posted: Wed Feb 02, 2005 8:34 pm
Post subject: Mastercard Gift Cards

In California, state law prohibits expiration of any purchased gift certificates.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"

Author: broon
Posted: Sun Jun 12, 2005 9:04 pm
Post subject: Mastercard Gift Cards

Gift cards with an expiry date are probably very popular with the people that issue them.

In Canada you will find a mix of gift cards with or without expiry dates...

Buyer beware!

Kevin.

Author: Polonius
Posted: Mon Jun 13, 2005 9:43 am
Post subject: Mastercard Gift Cards

In California, gift certificates/cards NEVER expire. A law was passed to ensure that. I've got a BlockBusters gift card that supposedly expired a few years ago, but I can use it today if I want.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"

Author: CreditCardGuru
Posted: Wed Jun 15, 2005 10:49 pm
Post subject: Mastercard Gift Cards

Next time if you don't use a store gift card, as I like the ability to chose, I prefer Bank of America VISA gift cards, I'm sure they don't have a THREE MONTH expiration date, plus then I can always put them in my collection of cards
_________________
I'm the Credit Card Guru, YOU BET

Retirement Calculator

Author: eujay
Posted: Sun Jun 05, 2005 5:41 pm
Post subject: Retirement calculator

HI,
Does anyone know the whereabouts of a good retirement calculator. I'm looking for one I can use for free.

I just bought a copy of this months forbes investment guide since it carries a story about retirement planning and gives a few web sites with planners. Only one of them is a freebie.

Soooooo. What I'm looking for is something that i can plug all my numbers into, (my income, the wifes income, current home value, mortage etc), and get a lot of "What if" scenario's.

I'm sure I'm not the only person looking for something like this.
Any help is greatly appreciated.
Thanks
Eugene

Author: Ira
Posted: Mon Jun 06, 2005 1:31 pm
Post subject: Retirement Calculator

Try this site:

http://www.aarp.org/money/financial_planning/creating_plan/a2002-08-20-EvaluatingCashFlow.html

Actually try looking around the AARP site a bit more than I did. You might find some good references there.
_________________
Do not let what you cannot do interfere with what you can do.

Ira

Author: Polonius
Posted: Mon Jun 13, 2005 9:47 am
Post subject: Retirement Calculator

Regardless of how you crunch the numbers, don't take the results very seriously. No one knows the future rate of inflation, housing costs, interest rates, value of your pension/retirement accounts (don't count on Social Security benefits--who know what they'll be when you retire?). Nor do you know when YOU or your spouse will die.

Some take those projections seriously and then run out of money when they live longer than expected or the stock market tanks. Some (like my parents) are afraid and put all into their pension funds instead of enjoying life--and then die young with a wad of cash that they could have enjoyed and didn't.

Personally, on the day of my death I want to have no assets and owe a half million bucks or more to the banks. Only problem is trying to figure out how to do that!
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and