Investments strategy with new administration?

[tradosaurus]

Easy for you to say. I thought it was a pain in the azz, Trad. Nothing worse than moving.

Yes, it was too big. My wife and I want to downsize our home and buy one geared more towards pre retirement.

I am pretty well connected, in my little town. I have a friend who owns several rental homes and I am in living in one of them. We planned to wait until a small farm comes up for sale, but prices are extremely high and so are interest rates. The house we are renting is very nice, so we don’t feel any pressure to get out.
I’d like to wait until interest rates return to a more favorable level, but that could also drive up real estate prices even further.

Thats what my previous home was like. We loved it, but we sensed the market was peaking. My Mother in law had just passed and she was part of the reason we held onto our home. Not to brag, but I have the cash (mostly from the sale of the home) now to live mortgage free for the rest of my life. We are thinking about investing in a farm, but that would mean a mortgage.

With no kids in the house I would think moving would allow you to downsize everything. When in doubt, throw it out.
Try moving with 9 kids.
If things go the way they did with DT the first time the economy should really take off again.

 

[Hay Dude]

With no kids in the house I would think moving would allow you to downsize everything. When in doubt, throw it out.

Yeah, definitely agree my friend. We had 7 bedrooms and 3 were empty. Then my MIL passed and that vacated the in-law suite. My remaining 2 kids are pretty close to flight from the nest, but they have asked us about buying a farm and all of us living on same parcel in separate homes.
It’s fun to think about. Especially if the property taxes on a farm are lower, then splitting the bill 3 ways.

Try moving with 9 kids.

Oh, the joy.

If things go the way they did with DT the first time the economy should really take off again.

Agree. Wouldn’t mind seeing home energy costs drop the $500/month they went up in the last 4 years. That alone would be like having the income from a part time job.

But anyways,,,,back to investing!!!!!

 

[Oaktree]

Or just buy a Tesla and avoid the dealership mafia network altogether.

And absolutely no room for negotiation. Here's the price, take it or leave it. 5 of one, half dozen of the other. No thanks.

 

[D&D]

Not to brag, but I have the cash (mostly from the sale of the home) now to live mortgage free for the rest of my life. We are thinking about investing in a farm, but that would mean a mortgage.

Nice to see, mortgage free vs paid for. My mortgage free house still requires a monthly payment of over $700 for taxes and insurance.

 

[Hay Dude]

Nice to see, mortgage free vs paid for. My mortgage free house still requires a monthly payment of over $700 for taxes and insurance.

Our “dream plan” is a paid off or smaller mortgage farm, with 2 of our kids on the same large parcel in separate homes and we split the greatly reduced property tax bill (reduced because its a farm).
When my wife and I are called by the Lord, our home could be rented, or they could sell the whole thing for mucho grande dinero as their inheritance.

 

[RSKY]

We've been debt free since 1995. It makes sleeping at night a lot easier.

When the second factory I worked at closed all the supervisors from two shifts were talking and I was surprised that I was the only one that didn't owe on my house. I was 56 and some of them were in their mid 60's. They all seemed shocked that my house had been paid off for ten years. And yes, it made sleeping at night a lot easier when I made the final payment.

RSKY

 

[EddieWalker]

Our “dream plan” is a paid off or smaller mortgage farm, with 2 of our kids on the same large parcel in separate homes and we split the greatly reduced property tax bill (reduced because its a farm).
When my wife and I are called by the Lord, our home could be rented, or they could sell the whole thing for mucho grande dinero as their inheritance.

When I bought my land, I financed it for 15 years and paid it off in five. I built my house for cash so I wouldn't have a mortgage. It's been almost 20 years, and I'm still building on it, but that's because we keep changing our minds and adding on to it.

In 2010 my parents sold their house in CA and I started building their house behind mine. We share the same power and water meters. It took a year to build it, and nothing else got done on the land, but once it was done, they became a huge asset to the land. Mom loves to garden and keep the areas around the houses neat and clean. Dad enjoys being out on the backhoe, taking out trees and cutting firewood. They do what they want, when they want, and overall, it's been a very good fit. My wife and I call their house "the store next door" because whenever we need something while making dinner, we know that mom has it in her pantry!!! Dad passed away last year, and the last two years of his life he had dementia. It got pretty bad in the end, but fortunately we were able to keep him at home until the end, when he passed away in his own bed. Now we keep an eye on mom, but she's doing good and keeping busy with her church lady friends. She still works in the gardens almost every day, and her pantry is always full.

If you can, it's a very good way to help your parents when they get older. I'm very fortunate how it's all worked out.

 

[RSKY]

I agree. I have always recommended paying cash to avoid payments when buying a vehicle because I see them as depreciating not appreciating assets. So the sooner you get it paid for and the longer you keep it the better. Every day you drive a paid off vehicle you are actually making money.

BUT, now it's different, IMHO, with the price of vehicles as they are and the way franchised dealers operate now it actually better for the customer to factor financing into the deal from the start, assuming you have good credit - ~800 or above, and you get the best rate. Keep your money invested.

I made this mistake last year. Bought a new vehicle in April 2024. Paid cash, took $50,000 out of investments for the vehicle and a few other things. Mutual fund at $28. Within two months it was up to $36. Stupid, stupid, stupid!!

I knew better but did it anyway.

Bought oldest daughter same thing a month later (long story, evened out for youngest getting FIL's place for a song. And she deserved it) and making payments on it.

RSKY

 

[Hay Dude]

When I bought my land, I financed it for 15 years and paid it off in five. I built my house for cash so I wouldn't have a mortgage. It's been almost 20 years, and I'm still building on it, but that's because we keep changing our minds and adding on to it.

In 2010 my parents sold their house in CA and I started building their house behind mine. We share the same power and water meters. It took a year to build it, and nothing else got done on the land, but once it was done, they became a huge asset to the land. Mom loves to garden and keep the areas around the houses neat and clean. Dad enjoys being out on the backhoe, taking out trees and cutting firewood. They do what they want, when they want, and overall, it's been a very good fit. My wife and I call their house "the store next door" because whenever we need something while making dinner, we know that mom has it in her pantry!!! Dad passed away last year, and the last two years of his life he had dementia. It got pretty bad in the end, but fortunately we were able to keep him at home until the end, when he passed away in his own bed. Now we keep an eye on mom, but she's doing good and keeping busy with her church lady friends. She still works in the gardens almost every day, and her pantry is always full.

If you can, it's a very good way to help your parents when they get older. I'm very fortunate how it's all worked out.

That is a terrific story. Want to do similar.

 

[riptides]

I do not get a feeling real estate prices are going to drop anytime soon...or mortage rates for that matter either. I think 3 percent mortgages were an anomaly.
Another farm up the road went to a developer. Looks like over 100 new homes on what was a very hilly property. I find it interesting on what they build on now...around here. And then the names of the development calls out to the past.
All the development increases tax pressures on existing homeowners. My county struggles with planning and tax strategy. Too much developer influence.