Worth considering that housing is currently a seller's market, as far as I've seen. I don't think any buyer in my area would stand a chance of making the sale if they tried to submit an offer with less than 20% upfront.
i kept my down payment in laddered cds to lock in the funds to force myself not to touch. As they mature, id put them into a seperate account and once all collected , give the down payment
Hi Guy's, it's my first time commenting on your show. So thanks for all your great work. I fully enjoy listening. Where would you advise putting the cash to maximize return and minimize risks while waiting for the housing market to soften? Thanks, Gar
If you're American, government series-I bonds give an interest rate tied to inflation, current interest rate is over 6% I believe. You need to hold the bonds for a minimum of one year, but after that you can redeem them for the principle + interest. It's a very safe investment if you can afford to wait at least a year to access the money.
When they say leave it as cash they mean it should be in a simple savings account. Online savings accounts will sadly be the best option with .5% interest currently. If you know you'll not need it within the next year then Govt Series I-Bonds could be a fine option currently with high inflation rates. However, you can only do a max of $15k per year per SSN. And $5k of that has to be done through tax returns. Experian has a fantastic recent article online titled, "How to buy Series I Bonds".
Any thoughts on using offshore bank accounts for their higher interest rates when trying to save money short-term for a future purchase? Rates appear to average between 3-6% annually. Thanks for any insight.
I'm 42 and haven't owned a house yet. I honestly feel like a huge disappointment. I've put too much effort into long term relationships and looking back hindsight, I should have just focused on a home. So now I'm trying to work even harder to make my dream a reality. While I'm very happy for all the first-time home buyers, I'm also jealous because I didn't make better decisions. However, I'm working on saving 800+ a month. Between my 3 savings accounts, emergency fund, Home and just forget about it savings. The home account will probably be a HYSA .
3% seems very low for a down payment on a house. Dave Ramsey recommends 20%, and even if you think that’s too high 3% is far in the other direction. What’s the logic behind such a low down payment instead of something more in the middle like 10%?
cause when you do something like 5% vs 10% down it doesn’t drastically change the monthly mortgage. if you’re gonna be investing in the property right away then maybe saving 20% down so you have more margin for profit is worth it.
I can get up to a $50,000 loan at prime rate (about 4.25% right now) with a term of 120 months (10 years) through my 403b at work for a down on a home. Would this be a good idea or bad idea?
Just something you have to deal with if you need the money to be liquid. And just because you invest the money doesn't mean inflation disappeared. If your investment breaks even then you are still losing to inflation. Even worse, if your investment goes down then that's a double whammy.
The whole point is that this is for short term needs, so inflation has a smaller impact the shorter the duration. As they advise, if you’re time horizon is >7years you have the time to invest & recover from downturns
@@bisonfan715 Just checked.. its lost over 1% in the last year and has a .35 expense ratio. And lost .5% over the past 5 years. Worse than cash unless it has a dividend that I'm missing.
I bought my first house in 2010, foreclosure and I was liquid and ready to buy, such a great deal on the house.
4:00 dude this is intense BIG BRAIN knowledge
I am liking the newer set now, must be the brightness of it compared to before. Thanks for all the information that you and your crew provide us!
Worth considering that housing is currently a seller's market, as far as I've seen. I don't think any buyer in my area would stand a chance of making the sale if they tried to submit an offer with less than 20% upfront.
i kept my down payment in laddered cds to lock in the funds to force myself not to touch. As they mature, id put them into a seperate account and once all collected , give the down payment
Hi Guy's, it's my first time commenting on your show. So thanks for all your great work. I fully enjoy listening. Where would you advise putting the cash to maximize return and minimize risks while waiting for the housing market to soften? Thanks, Gar
If you're American, government series-I bonds give an interest rate tied to inflation, current interest rate is over 6% I believe. You need to hold the bonds for a minimum of one year, but after that you can redeem them for the principle + interest. It's a very safe investment if you can afford to wait at least a year to access the money.
When they say leave it as cash they mean it should be in a simple savings account. Online savings accounts will sadly be the best option with .5% interest currently.
If you know you'll not need it within the next year then Govt Series I-Bonds could be a fine option currently with high inflation rates. However, you can only do a max of $15k per year per SSN. And $5k of that has to be done through tax returns. Experian has a fantastic recent article online titled, "How to buy Series I Bonds".
Thanks a lot for that I series bond. Very cool
I didn’t have to put a dollar down when buying my first house, and the sellers paid the closing costs.
Watching this in 2024 and hearing "in this low interest rate environment" is so painful
Any thoughts on using offshore bank accounts for their higher interest rates when trying to save money short-term for a future purchase? Rates appear to average between 3-6% annually. Thanks for any insight.
Why do I feel like no answer was given here?
I'm 42 and haven't owned a house yet. I honestly feel like a huge disappointment. I've put too much effort into long term relationships and looking back hindsight, I should have just focused on a home. So now I'm trying to work even harder to make my dream a reality. While I'm very happy for all the first-time home buyers, I'm also jealous because I didn't make better decisions. However, I'm working on saving 800+ a month. Between my 3 savings accounts, emergency fund, Home and just forget about it savings. The home account will probably be a HYSA .
@@pacificwestsoul I allowed myself to lose focus on my goal and put them as my priority
Think of it this way. You have saved thousands and thousands on house repairs etc from not owning a home. Renting is NOT a bad thing
How about a Stable Value Fund ?
@@benchoflemons398 not the same
3% seems very low for a down payment on a house. Dave Ramsey recommends 20%, and even if you think that’s too high 3% is far in the other direction. What’s the logic behind such a low down payment instead of something more in the middle like 10%?
cause when you do something like 5% vs 10% down it doesn’t drastically change the monthly mortgage. if you’re gonna be investing in the property right away then maybe saving 20% down so you have more margin for profit is worth it.
I can get up to a $50,000 loan at prime rate (about 4.25% right now) with a term of 120 months (10 years) through my 403b at work for a down on a home. Would this be a good idea or bad idea?
Mortgage rates are lower than that typically plus you'll still be in the market. Leveraging the debt.
What about your money losing value because of inflation?
Just something you have to deal with if you need the money to be liquid. And just because you invest the money doesn't mean inflation disappeared.
If your investment breaks even then you are still losing to inflation. Even worse, if your investment goes down then that's a double whammy.
Check out the ETF $MINT
The whole point is that this is for short term needs, so inflation has a smaller impact the shorter the duration. As they advise, if you’re time horizon is >7years you have the time to invest & recover from downturns
@@bisonfan715 Just checked.. its lost over 1% in the last year and has a .35 expense ratio. And lost .5% over the past 5 years. Worse than cash unless it has a dividend that I'm missing.
@@joshalecusan3642 dividend is 0.44%
I’ve been trying to look into getting a S&P 500. Are there any credit unions that do that? Where is the best place to start with a SMP 500