Planning for a depression? It's depressing!greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
Ok. I have the preps thing done. I have suplies and equipment to basically homestead. The worst case scenario is mostly covered.
Now we step back to the much more likly scenario, Severe recesion or depresion.
I have already long since paid off my consumer debt. I have never been comfortable with owing money without a good reason. I have pulled out of the stock market earlier this year.
The problem is, I was planning on moving. I rent and I want to buy. It seems to me that if I buy now I am buying a house while prices are high. If that happens and we do slide in to a depression like I think we will, then am I left holding the bag? (Meaning a house purchased while prices were high that I won't be able to sell without taking a loss.) I plan on living in the house for 5 to 10 years.
Any other depression preps I can make besides no consumer dept, picking up extra skills and jumping out of the market?
Waiting to hear from those wiser than I with my...
-- eyes_open (firstname.lastname@example.org), August 11, 1999
If you have the financial capability to purchase outright, then by all means, wait this thing out. Property values will plummet in the recession and (god forbid) depression scenarios, but so will credit to buy that house. My 2 cee's
-- OR (email@example.com), August 11, 1999.
I know what you mean about moving. We planned on selling this farm and moving to another part of the state and buying another farm. It would be nice if we could sell this one now while prices are high and wait until next year to buy, but it just doesn't work that way. If we sold, we would have no where to keep all of our animals and we can survive on this place if things get bad, so we wait.
We prepared for a 10 as well and are now going back and looking at lesser events and making those preps. For us it made no sense to get a generator for a 10, but now we are looking at it in case things are only a 3.
-- Beckie (firstname.lastname@example.org), August 11, 1999.
Under one scenerio, wait until prices fall. However, if our illustrious leaders decide to print additional money so that they can pay the bills with billions of cheaper dollars, prices will increase, the value of the dollar will fall and the house may cost 3 times as much at the end of 2000. Or the house could cost one half as much. Or if the banks go bankrupt, they will not be able to return your funds or loan money for a new house. At least Nixon had some integrity. Compared the the current bunch, he had a lot of good qualities. He was threatened with impeachment and had the grace to resign. Not this bunch.
-- Tom (Tom@bbb.gom), August 11, 1999.
IMHO it is possible to have inflation and deflation at the same time. Prices may rise on items in short supply (ie gas, food, auto parts, etc.), but can fall on things nobody can or wants to buy. An increase in unemployment will result in an increase in "for sale" signs. We always think real estate will only go up in value, but ask some old timers who were around in the '30's and they will tell you that R.E. prices can go down too. Your house is only worth what someone will pay you for it. Appraisals don't really mean squat.
-- bill (email@example.com), August 11, 1999.
If you are renting, then I would imagine the landlord/landlady has the right to inspect your house for "whatever".
If you owned your own house, then you would not have that nagging suspicion that the renter might decide to confiscate or to have you "share" your preparations should dire extremes arise.
If you feel threatened in your current situation, then spending the money now for a safer retreat is better than being stuck later.
Maybe it depends upon how many needy relatives and friends the landlord/landlady will bring to your doorstep.
-- Randolph (firstname.lastname@example.org), August 11, 1999.
You guys and gals, that are prepared for a 10...Please enlighten wy it is so inportant to pay of debt???? and that bag your holding, why isnt it filled with money???? I sold my house, business, filled out the CTR,s and got all the cash. I then cashed in on my perfect credit history and max out all my cards for cash. Im this week going into my over draft and will max that as well..I will pay the minimum monuthly. If the banks are telling me the truth and thereis no problem, then come march or april of 2000 I will return everything, pay the interest gladly as Y2K insurance....Get the money!!! remember what Ronny Ragan said. JUST BUT VERIFIY!!
-- Les (email@example.com), August 11, 1999.
I've seen some argument that it's best either to have your house paid off in full, or owe more than it's currently worth. In the first case, they can't kick you out (if you can pay your taxes, of course!), and in the second case, they won't bother, since the bank is better off with the house tenanted at the very least. Beware of having your house *half* paid off and losing you job, since at least for a while the bank can sell your house for a profit.
Oh, and Tom: Nixon hardly resigned "gracefully", instead swearing he'd fight it out right to the bitter end, at least up to the point where Senate headcount showed him down to at most 8 supporters. And as a detail, Nixon *was* impeached, as was Clinton. Neither was convicted. So far, we've had 3 presidents impeached, but none of them convicted. Nixon would have been convicted easily, had he not quit when he realized this.
-- Flint (firstname.lastname@example.org), August 11, 1999.
It seems to me, that the true value of a home and/or land, is that it is shelter and a place to grow food, have livestock, etc. that is yours. the actual value in terms of money is only secondary IMHO. So- with that in mind, if you bought a place that suits your needs- what does it really matter what it will be worth?
In my case- my land and house are paid for- it wouldn't matter a bit to me if two years from now, due to extreme economic crisis- the "value" was less than now- it would be fulfilling its role of shelter for myself and family, producer of food, etc- just my thought...
-- farmer (email@example.com), August 11, 1999.
It's starting to get OT, but look it up. Nixon was not impeached. The committee voted on articles of impeachment, but it never went to a House vote.
Two Presidents impeached in history. Nixon had the honor to resign before he was impeached.
-- Dog Gone (firstname.lastname@example.org), August 11, 1999.
Would Nixon have been a GI, DGI or DWGI?
Grant would have been a DUI.
-- Randolph (email@example.com), August 11, 1999.
BUY A HOME AS SOON AS YOU CAN!!!!
If we have a depression, you will not be able to buy a home for many years! Banks do not loan money during a depression. You will not have a decent income during a depression to buy a home. You may not have any income! Either get it now or forget it.
-- freddie (firstname.lastname@example.org), August 12, 1999.
i disagree with "worrying about the fact that your landlord has a right to inspect what you have". if you have a decent relationship with your landlord, why would they want to do that??? geesh, everyone is totally paranoid. store it if you are worried about that.
renting gives you things that owning doesn't: 1) a landlord who is responsible for fixing things that don't work and 2) flexibility to move if things should get bad in your area, if your house becomes unlivable, if you lose your job, etc., 3) possibly the ability (if it is an older property) to actually go down on your rent (in emergencies) if things are tough and they want to keep a renter but yet primairly are worried about paying the mortgage (you could work out a deal to pay the mortgage amount at least).
why would you buy a house now? and pay all the costs of moving, settlement, setting up a new house--etc. only five months before a potential major crisis. plus, hopefully, you know your neighbors and that is better i would think than all new neighbors.
-- t (email@example.com), August 12, 1999.