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Is it a bad time to buy?

3K views 9 replies 9 participants last post by  w_r_ranch 
#1 ·
I found some land I’m looking at buying. My wife just got laid off but after watching my retirement disappear I fill I rather buy land that will be here for ever than deal with this. I’m a 29 and trying to figure out my best rout. Interest rates are low , coupled with Ag exceptions and low taxes I fill like I rather make a land payment with my savings than putting it in my 401k. Any sound advice on my reasoning or have I gone off the deep end?
 
#2 ·
Your retirement did not disappear, you are only 29. Your contributions to your 401k are vital right now, the goal when the market is low is to keep the course. When it rebounds you will be ahead of where you were prior due to buying more shares at a lower cost.

If you were in your 60’s the response would be different.

Having said that good property purchases are never bad. I would suggest you focus on your 401k unless you had cash to buy the land outright.
 
#4 ·
In the short run, next 6 to 12 months, I would stack up the 401k, especially if there is a good match. Stock market is very low right now, but poised for a nice recovery in the next many months. A good stack of cash infusion into the 401k would make a very nice return. At least that is what those who should know are telling me.

That said, I am a 99% real estate guy and will always be one. Hard to say no to dirt. But the market is prime for the picking right now. Again, that is what those who should know are telling me.
 
#6 ·
Agree times 10.

At 29 you have 35 years to build 401k, this is just a speed bump at your age.

I'm 58, and saw losses, but actually buying in at higher rate with the market being so low., especially with my company matching dollar for dollar up to to 4pct,,, if your company offers a match,,, keep adding

I puled some recent gains out of my aggressive funds and moved to money market, only because of the upcoming election in November,,, the market hates uncertainty, , and elections do that.

If you have to scrape for a down payment your not in a position to pull off that transaction, at least right now.

Not that I listen to all of Dave Ramsey advice ( he's pretty extreme) but his principles are solid. ( if you have never listed to him, order his total money makeover cd)

1. Clear all credit card debt , student loans and vehicle loans and cut up the credit card
2. 6 months emergency savings,, better said,, enough to pay ALL of your bills for 6 months
3. Mortgage paid off, or no more than a 15 year fixed
4. College fund for the kids

If you got all this done, ,, real estate would be my next step,, again your 29..... you got some time to build wealth, don't panic over the down turn,,,, market ALWAYS comes back
 
#7 · (Edited)
Hi, hope you and your wife are fine now. In case if your wife just got laid off, it may be wise to wait until you're more financially stable before making such a big investment.
It's also worth noting that buying land is a long-term investment and may not provide immediate financial returns. It's important to have a clear plan for how you will use and develop the land.
I would recommend seeking professional advice from a mortgage advisor like Mortgage Advice London. They can help you understand the current market and the best options for you. It's always better to have a second on finanacial topics.
 
#9 ·
A few random thoughts after years of staggering around money/investments.
1. there is an ocean of difference between I lost all my retirement in the market and my account balance is lower right now.
2. There is a vast difference between asset and cost. If you lose all your job an asset will feed you and a cost will eat you. Houses, property and toys that produce no positive cash flow are not investments. In my life if my house is " my biggest investment" Im doing it wrong
3. Time solves lots of problems. Often times the best thing to do when the markets go south is nothing at all
4. whoever buys into the theory he who dies with the most toys is on a fools errand
 
#10 ·
The best time to buy ANYTHING is when you can afford to pay cash.

Anyone can buy anything on credit, the trouble is affording to keep it. Hell, every downturn results in repossessions of vehicles, houses & land... These are buying opportunities IF you have cash.
 
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