harveyspecter993

I just happen to have an interest in budgeting and money-management and like to learn from other people. I'm probably going to put off starting a family until my mid-30s due to how expensive it is and so when you mentioned the costs of "supporting a family" I was curious and wanted to learn more.

Would you mind breaking down your monthly budget?

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You don't have to send your kids to private school.

What value of home do the richest lawyers live in?

Can you elaborate on the condo board drama?

I never tire of Dave Ramsey's brutal takedowns. It's not a flawless analysis but still hilarious:

You mean I shouldn't use a HELOC to pay for my wedding? https://www.nytimes.com/2018/05/09/fashion/weddings/how-to-get-help-paying-for-your-wedding.html

NY is much fairer because you get cold-offered instead. Imagine moving into a fancy new apartment when you get hired back only to be let go 6 months in and suddenly be in a financial crisis. Granted you'd be cold-offered in your 2L summer but you'd still avoid a nasty surprise.

Do you have debt?

Home equity is not a liquid asset. If you want to access it without selling your home you have to take out a HELOC. If you're using a HELOC to invest you better be sure your investment will pay off your HELOC on its own because otherwise you just have another line of debt to worry about.

@RollMaster Let's compare the two. With a home mortgage, in addition to the monthly mortgage payments you're also on the hook for property tax and condo/HOA fees. For reasons I've described above, the equity you have in a home isn't all that useful. With a car, you're on the hook for monthly car payments, as well as gas, insurance and maintenance. Both purchases are money sinks.

Why?

Real estate is a fantastic investment. Owning a home is not. Home ownership takes money out of your bank account every month and gives you nothing in return. It's as bad for you as a car lease. The equity you have in a home can't be tapped into unless you get a HELOC or sell the property. A HELOC is just another debt obligation and if you sell your home you're back where you started as in you have to either rent or put the money towards another down payment.

On top of the actual mortgage itself, you have to factor in condo fees as well as property tax. All considered, it doesn't make financial sense to own a home. Renting is cheaper and gives you the flexibility to move to a new home if you so choose. While you rent, the money which would otherwise be going to condo fees and property tax will be going towards expanding your investment portfolio.