Should I Pull Money out of My Home? - Page 2 - Survivalist Forum
Survivalist Forum

Advertise Here

Go Back   Survivalist Forum > >
Articles Classifieds Donations Gallery Groups Links Store Survival Files


Notices

Financial Forum Economics and Precious Metals

Advertise Here
Reply
 
Thread Tools Display Modes
Old 05-22-2020, 12:18 PM
TXplowgirl's Avatar
TXplowgirl TXplowgirl is offline
Wannabe Mountain Hermit
 
Join Date: Aug 2011
Location: Southern Oklahoma
Age: 56
Posts: 13,040
Thanks: 31,142
Thanked 34,803 Times in 9,913 Posts
Default



Advertise Here

Hey Mogli, check out Dave Ramsey's book, The Total Money Makeover, he discusses financial situations and you might find a solution to your problem.

https://www.thriftbooks.com/w/the-to...9&idiq=3903792
__________________
Disabled Preppers Group
For those of us who are disabled, whether it be SSDI, SSI, Military, family members who are disabled and would like to discuss with others on how we might be able to get through today's times, SHTF or joining a MAG and what challenges may be faced with that.
Quick reply to this message
The Following User Says Thank You to TXplowgirl For This Useful Post:
Old 05-22-2020, 12:36 PM
Jack Swilling's Avatar
Jack Swilling Jack Swilling is offline
VIP Member
 
Join Date: Nov 2017
Location: Ozarks
Posts: 4,136
Thanks: 8,115
Thanked 9,665 Times in 3,022 Posts
Default

Sell it while you still have equity and move to wherever you believe is the place
your dreams are made of
Everything else will work itself out
I waited too long, in retrospect, 55 years, to relocate from SO CAL
If you can tolerate California, then stay there
Otherwise, move on, the sooner the better based on my experience
Life is way too short to endure a suckfest
Quick reply to this message
The Following 5 Users Say Thank You to Jack Swilling For This Useful Post:
Old 05-22-2020, 12:49 PM
alv7722's Avatar
alv7722 alv7722 is offline
Come and Take Them!
 
Join Date: Feb 2013
Location: Where I Am Now
Posts: 2,897
Thanks: 15,682
Thanked 7,585 Times in 2,191 Posts
Default

Quote:
Originally Posted by Mule Skinner View Post
Mogli -
My crystal ball is cloudy on hyperinflation; but cash is not the place
to be if it occurs. In an inflation scenario cash loses value while
"things" do not. Whatever house you might own would still have
utility value if there is high inflation.
I have to agree with his thinking here. It is possible that around $30T in debt, our currency could collapse, and the rest of the World would no longer accept our 'paper'. End of reserve currency status, and end of the petro-dollar. The only hedge I can see is to have substantial reserves in precious metals. But that is a risky proposition in itself. Think $60/gallon gasoline, along with shortages, you are only allowed to buy 5 gallons at a time.

If you are 62 or older, a reverse mortgage could be a consideration. You can pull nearly all the cash out of your house, but retain a life estate to live there.
Quick reply to this message
The Following 2 Users Say Thank You to alv7722 For This Useful Post:
Old 05-22-2020, 03:28 PM
country_boy country_boy is offline
Hunter
 
Join Date: Feb 2014
Location: Alabama
Posts: 1,721
Thanks: 69
Thanked 1,477 Times in 830 Posts
Default

Quote:
Originally Posted by Mule Skinner View Post
Something to consider relative to hyperinflation.
[ My crystal ball is downright inky on this one~! ]
Let's say the future $1.00 becomes equal to today's one cent.
Would the bank still accept $800 for your mortgage payment?
OR
Would there be some sort of indexing law shifting that payment
to $80,000 monthly?

Here is an old song from way way back:

The Clovers - Your Cash Ain't Nothin' But Trash 78 rpm! - YouTube

No, you sign a contract to repay in a particular way. You taxes could skyrocket, even100x in your example, but not the mortgage.

That’s why inflation is kind to borrowers, and hell on lenders and those on a fixed income or invested in cash.. Stock investor and wage earners would be a wash, were it not for the damage inflation does to the economy.

Cash investments get killed by taxes, with a 10% inflation rate most people will need about 15% return to just avoid loosing value.
Quick reply to this message
The Following 2 Users Say Thank You to country_boy For This Useful Post:
Old 05-22-2020, 03:33 PM
NCalHippie's Avatar
NCalHippie NCalHippie is offline
Survivor
 
Join Date: Jun 2013
Posts: 14,693
Thanks: 32,367
Thanked 27,186 Times in 10,220 Posts
Default

We have decided not to go in debt to buy bug out property unless we can get a group of investors to team up with to minimize payments as a LLC.
Quick reply to this message
The Following User Says Thank You to NCalHippie For This Useful Post:
Old 05-22-2020, 04:30 PM
neiowa neiowa is offline
Survivor
 
Join Date: Dec 2014
Posts: 2,845
Thanks: 2,636
Thanked 4,637 Times in 1,785 Posts
Default

Quote:
Originally Posted by Mule Skinner View Post
...
My crystal ball is cloudy on hyperinflation; but cash is not the place
to be if it occurs. In an inflation scenario cash loses value while
"things" do not. Whatever house you might own would still have
utility value if there is high inflation.
Not when the so called "asset" is priced at substantially more that it's real value (as the case in urban CA for years). House o cards supported by 1.) to many people (aliens) and to little housing stock 2.) idiots with to much phoney income.
Quick reply to this message
The Following User Says Thank You to neiowa For This Useful Post:
Old 05-22-2020, 04:33 PM
neiowa neiowa is offline
Survivor
 
Join Date: Dec 2014
Posts: 2,845
Thanks: 2,636
Thanked 4,637 Times in 1,785 Posts
Default

Quote:
Originally Posted by Mogli View Post
Hi Everyone, Iím have a dilemma and would value your insights. My goal has always been to be debt free and Iím almost there having paid off debt with the exception of a tiny mortgage on my home. Ö.
SELL the place for what you can get out of it and MOVE. Best out of the state and to the real world. BUT leave all you Kommiefornian ideas of government behind (and you DO have them if you've been living there). If you move somewhere and ID that "they should be doing _____ " then you are part of the problem.
Quick reply to this message
The Following User Says Thank You to neiowa For This Useful Post:
Old 05-22-2020, 04:40 PM
NCalHippie's Avatar
NCalHippie NCalHippie is offline
Survivor
 
Join Date: Jun 2013
Posts: 14,693
Thanks: 32,367
Thanked 27,186 Times in 10,220 Posts
Default

Quote:
Originally Posted by neiowa View Post
SELL the place for what you can get out of it and MOVE. Best out of the state and to the real world. BUT leave all you Kommiefornian ideas of government behind (and you DO have them if you've been living there). If you move somewhere and ID that "they should be doing _____ " then you are part of the problem.
I can assure you, she is not part of the problem.
Quick reply to this message
The Following 3 Users Say Thank You to NCalHippie For This Useful Post:
Old 05-22-2020, 07:00 PM
Hick Industries's Avatar
Hick Industries Hick Industries is offline
Live Secret, Live Happy
 
Join Date: Apr 2009
Location: Eastern Oklahoma
Posts: 14,999
Thanks: 18,507
Thanked 37,491 Times in 10,383 Posts
Default

What worries me the most about Cali and other states run by power hungry liberals, is the demonization of the regular folk, who just want to go back to work and support their family.

These liberal creatures are not content to raise taxes, and push expensive socialist programs, now they propose to attack/kill/destroy anyone that does not agree with them.

This worries me because I visited the Nazi museum in Nuremberg Gr, and that is exactly how they convinced an advanced, scientific society to support the removal, and ultimately the murder of Jews and other undesirables.

I lived in the high desert area for +30 yrs, and I still have several friends in Cali. I give tbem all the same advise. Get tbe Hell out of there before Gov Newsom starts talking about a Final Solution.
Quick reply to this message
The Following 2 Users Say Thank You to Hick Industries For This Useful Post:
Old 05-22-2020, 09:01 PM
urbanprep urbanprep is offline
Newbie
 
Join Date: Oct 2019
Posts: 29
Thanks: 30
Thanked 63 Times in 17 Posts
Default

Do the math on what that 150k you pull out will cost you over the next 5 or 10+ years.

My advice would be to pay it off and stay OR sell and move somewhere where youíll be debt free with cheap taxes and better 2A protections..

I refinanced.. lowered the time left on my loan with a better rate. Itíll save me 50k in the next 5 years (between interest saved and equity earned).


Sent from my iPhone using Tapatalk
Quick reply to this message
The Following User Says Thank You to urbanprep For This Useful Post:
Old 05-22-2020, 10:03 PM
thataway's Avatar
thataway thataway is offline
Hunter
 
Join Date: May 2015
Location: Florida Panhandle
Posts: 1,248
Thanks: 816
Thanked 2,391 Times in 880 Posts
Default

I see two issues: One is what do you do with the $150,000? What "investment" will still be liquid, and keep the relative value of the dollars? The stock market is particularly risky currently--bonds even worse. Precious metals: a way to hold a part of your wealth, but they have underperformed the stock market. This does not appear to be a good time to buy PM... Or are you going to "invest" in your homestead in another area now? You have to pay off that $150K, at some point--and you have to pay interest on it--no matter how little that interest is--it is still money out of your pocket. Although the pundits say "no inflation". I already see it happening.

The second issue appears to be medical care for your daughter. You are established with Kaiser--and there are good and bad things with Kaiser. (I am a retired MD, and guardian for a relative who has Kaiser insurance in Calif.) If your employer/retirement provider will keep paying for Kaiser, that is almost a lock in. There are not many Kaiser facilities outside of Calif. But you can investigate facilities in Colorado, Georgia, Hawaii, Maryland, Oregon, Virginia, Washington which are run by Kaiser.

We left Calif. 28 years ago for the same reasons you cite--only it is far worse now. (My kids still live in CA, so I get daily reports)...We sold our modest Calif. house, and bought a very nice waterfront home in Florida, for 1/3 of the sale price of that house....Our overall living costs are far less than CA--no state income tax, insurance is much less, no personal property tax, labor costs are less, Gasoline has gone up to $1.64 a gallon recently...

What is the chance of finding the BOL now--finding Kaiser nearby, if you feel you want to continue that (We have Cal Pers, Insurance, with Blue Cross/Shield. We prefer choice to a single provider.).

I don't think that a Venezuela type of society will happen right away--but there are many risks of Calif. being at the forefront of the great socialization experiment of the "Green New deal" etc>.
Quick reply to this message
The Following 2 Users Say Thank You to thataway For This Useful Post:
Old 05-23-2020, 02:40 PM
goat daddy goat daddy is offline
Survivor
 
Join Date: May 2012
Location: California
Posts: 3,981
Thanks: 4,064
Thanked 6,003 Times in 2,524 Posts
Default

The prior owner of the house we live in did that 10 years ago. Took the money and paid his Ex wife for her equity in the place. He lost the place as he could not pay the mortgage. We bought if from the bank for 1/2 what he owed. We had to spend 40,000.00 to get it habitable after he damaged it. I don't think your plan has merit. My suggestion is to pay off the mortgage. Put a little extra on the principle each month. In a time of chaos not having a house payment will be good. Set aside a few dollars for a new place. I have always felt that robbing equity from the house is a bad move.
Quick reply to this message
The Following 2 Users Say Thank You to goat daddy For This Useful Post:
Old 05-23-2020, 03:30 PM
DoubleA DoubleA is offline
Newbie
 
Join Date: Apr 2020
Posts: 4
Thanks: 0
Thanked 8 Times in 4 Posts
Default Should I Pull Money out of My Home?

You need a Plan. Either stay or sell and move. I was a lifelong Californian, then retired and moved to Florida. Best decision I ever made.

IF you decide to sell, decide to either do so immediately or take your time. Take the proceeds, and pay in full for a new home elsewhere. Settle for less house, with $$ leftover to provide for a few months living expenses. Your daughterís needís complicate your planning, but not insurmountably so. Perhaps, she would thrive in a different environment?

If you decide to stay, then either save $$ like your life depends on it, or accelerate paying off your mortgage. Your idea to pull $ out has merit, but also increases your monthly payment, which is not something I personally would consider at this point. YMMV.

Only you can determine what is best for you and your daughter. Decide carefully, but donít be afraid to move just because of fear of the unknown. Is your daughter old enough or able to participate in the planning? If so, then might giving her the opportunity to be part of the process now reduce stress later?

Right now, crystal balls everywhere are muddy, however, Californiaís problems are not going to subside even if CV disappears overnight and the economy starts booming. Personally, I think the rest of this year is going to get rocky, especially in CA due to the budget shortfall and other issues already mentioned in this thread. Next year is a crap shoot- could be good or bad, your guess is as good as anyoneís. In the long term, I believe CA is a lost cause.

Good luck, plan carefully, then execute aggressively, and expect challenges- which can also be converted to opportunities. . Be prepared to deal with the FUD, which accompanies any change.

ETA: One other thing, and perhaps the primary consideration: What is in your daughterís Long Term best interest? Will California be a safe place for her? Do her health care needs dictate you remain in place?

And, please keep us posted as to your decision.


Sent from my iPad using Tapatalk Pro
Quick reply to this message
The Following 2 Users Say Thank You to DoubleA For This Useful Post:
Old 05-25-2020, 02:16 PM
Deadmeat99's Avatar
Deadmeat99 Deadmeat99 is offline
Survivor
 
Join Date: Feb 2010
Location: Northern Nevada
Posts: 5,324
Thanks: 6,849
Thanked 9,646 Times in 3,561 Posts
Default

Perhaps I missed this earlier but where do you want to go? I think it's well established that CA has very few redeeming qualities and an endless list of intolerable qualities, but you have to objectively evaluate where you're headed to.

I live in Nevada and the poitical trajectory is alarming (especially now that Emperor Sisolak blew up the state over COVID and not a single state-level politician objected to his shenanigans). I am looking at different ways to eject and head to Wyoming but the reality is both my wife and I have VERY good jobs here that would be very difficult to replicate in Wyoming (Sheridan specifically is where we're looking). Medical infrastructure/care there isn't on the same level as where we are now. Schools there are better. Weather is harsher there than here.

Basically IF the pros outweigh the cons, and the cons can be mitigated somehow, then yes I'd pull money out, set up a place to eject to, then sell what you have now. Considering how ridiculously valued real estate is in CA you should come out ahead no matter what. You just have to objectively evaluate both your current and desired situation.
Quick reply to this message
The Following 2 Users Say Thank You to Deadmeat99 For This Useful Post:
Old 05-25-2020, 03:20 PM
dealfinder500 dealfinder500 is offline
Survivor
 
Join Date: Feb 2011
Location: In the woods.
Posts: 5,386
Thanks: 31,221
Thanked 10,602 Times in 3,845 Posts
Default

Quote:
Originally Posted by Hick Industries View Post
Leave. Seriously girl I would sell out, pack up, and get the HELL OUT OF DODGE!
In fact, I did exactly that a few yrs back. While life here is tough, at least no one is planning to kill me.
This is what I would do. Unless there was some overwhelming compelling factor causing me to stay.

Mowgli, re-reading your first post, if you feel CA is that bad and is going to get worse (I'm not disagreeing with you), you might be better off getting out now while you are still able to.
Quick reply to this message
The Following 2 Users Say Thank You to dealfinder500 For This Useful Post:
Old 05-25-2020, 04:51 PM
goat daddy goat daddy is offline
Survivor
 
Join Date: May 2012
Location: California
Posts: 3,981
Thanks: 4,064
Thanked 6,003 Times in 2,524 Posts
Default

I have no knowledge of the economic credentials of the Trust agent that helped us with selling our house but she said she would not purchase real estate now. She is thinking of a crash. California real estate is way over priced. there could be a real problem if real estate collapsed. Pulling money out of your home could be a real issue unless you plan to use the money to relocate and abandon the place. We are going to keep our funds liquid for a while. Some on the current loan, some in the market, a little on bills, a little on fun and the majority in the bank. If the grits hit the fan, I'll put the money out of the bank and pay off this house. I'm not a fan of removing equity from your home. You should also be looking a property out of state. escaping California taxes is always a good thing.
Quick reply to this message
The Following 2 Users Say Thank You to goat daddy For This Useful Post:
Old 05-25-2020, 05:06 PM
woowoo2 woowoo2 is online now
Hunter
 
Join Date: Jul 2011
Posts: 1,624
Thanks: 1,971
Thanked 2,948 Times in 1,037 Posts
Default

Quote:
Originally Posted by Mogli View Post
Hi Everyone, Iím have a dilemma and would value your insights. My goal has always been to be debt free and Iím almost there having paid off debt with the exception of a tiny mortgage on my home.
What do you consider "Tiny" to be.

Any hope of paying it off?
Quick reply to this message
The Following 2 Users Say Thank You to woowoo2 For This Useful Post:
Old 05-25-2020, 07:01 PM
Mogli's Avatar
Mogli Mogli is offline
Daughter OfThe Revolution
 
Join Date: May 2012
Location: Nor Ca. Land of the lost.
Posts: 31,361
Thanks: 109,581
Thanked 110,156 Times in 27,131 Posts
Default

Quote:
Originally Posted by Hick Industries View Post
What worries me the most about Cali and other states run by power hungry liberals, is the demonization of the regular folk, who just want to go back to work and support their family.

These liberal creatures are not content to raise taxes, and push expensive socialist programs, now they propose to attack/kill/destroy anyone that does not agree with them.

This worries me because I visited the Nazi museum in Nuremberg Gr, and that is exactly how they convinced an advanced, scientific society to support the removal, and ultimately the murder of Jews and other undesirables.

I lived in the high desert area for +30 yrs, and I still have several friends in Cali. I give tbem all the same advise. Get tbe Hell out of there before Gov Newsom starts talking about a Final Solution.

^^^^. Yep. I know my thinking is a little darker than most people here at SB but I am seeing signs of this. It has me concerned. I canít help but think of the Jews, whose thinking and dilemma must have been much as my own right now. MOST of them didnít get out. I really donít think this will happen here but 4 months ago I never would have believed what weíre experiencing now. Whatever ones belief about the virus itself the Authoritarian power grab cannot be denied. And, most troubling of all is how many people are fine with it. I understand at the beginning when there were so many unknowns. But now!?!?

As was mentioned in another thread about one of my gloomy posts, people really are starting to fight back. Still, what next?
__________________
Quick reply to this message
The Following 3 Users Say Thank You to Mogli For This Useful Post:
Old 05-25-2020, 07:02 PM
Mogli's Avatar
Mogli Mogli is offline
Daughter OfThe Revolution
 
Join Date: May 2012
Location: Nor Ca. Land of the lost.
Posts: 31,361
Thanks: 109,581
Thanked 110,156 Times in 27,131 Posts
Default

Quote:
Originally Posted by woowoo2 View Post
What do you consider "Tiny" to be.

Any hope of paying it off?
$48k. I can pay it off in about 1 1/2 -2 years and yes, that is something Iím considering.
__________________
Quick reply to this message
Old 05-25-2020, 07:10 PM
Mogli's Avatar
Mogli Mogli is offline
Daughter OfThe Revolution
 
Join Date: May 2012
Location: Nor Ca. Land of the lost.
Posts: 31,361
Thanks: 109,581
Thanked 110,156 Times in 27,131 Posts
Default

Quote:
Originally Posted by goat daddy View Post
I have no knowledge of the economic credentials of the Trust agent that helped us with selling our house but she said she would not purchase real estate now. She is of a crash. California real estate is way over priced. there could be a real problem if real estate collapsed. Pulling money out of your home could be a real issue unless you plan to use the money to relocate and abandon the place. We are going to keep our funds liquid for a while. Some on the current loan, some in the market, a little on bills, a little on fun and the majority in the bank. If the grits hit the fan, I'll put the money out of the bank and pay off this house. I'm not a fan of removing equity from your home. You should also be looking a property out of state. escaping California taxes is always a good thing.
I think a crash is coming too. In fact I wouldnít buy now unless it was a screaming GREAT deal. The only reason for taking money out now is because I think the credit market will freeze. But, if it does then property will drop even more.

The loan would Cost $5k. Then the increased payments would be $6k a year. So if I held the money for two years thatís $17k. So Iím thinking I may be better off taking my chances that the credit markets wonít collapse.

I know I should be looking out of state but my mom and sister are 30 minutes North of me. My mom will need me if SHTF. My sister isnít smart enough to keep her car filled up with a raging fire on itís way. Last major fire in their area, last year, I had to take her 5 gallons of gas in case they had to evacuate. Which was a very real possibility.
__________________
Quick reply to this message
The Following 2 Users Say Thank You to Mogli For This Useful Post:
Reply

Bookmarks



Quick Reply
Message:
Options

Register Now

In order to be able to post messages on the Survivalist Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.
Password:
Confirm Password:
Email Address
Please enter a valid email address for yourself.
Email Address:
Gender
Insurance
Please select your insurance company (Optional)

Log-in

Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.



Thread Tools
Display Modes

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -5. The time now is 05:38 AM.


Powered by vBulletin®
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
Search Engine Optimisation provided by DragonByte SEO (Lite) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.
Copyright © Kevin Felts 2006 - 2015,
Green theme by http://www.themesbydesign.net