Paradise, my friend. Paradise.
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Owning a house as a Naval Officer
- Thread starter mstafford2010
- Start date
Paradise, my friend. Paradise.
Good advice, I would add that one of the most difficult lessons to learn in life is "Buy low, sell high". In recent memory, the ".com" bubble" when folks were fighting to buy JDSU at highs of $350 share (currently $17 range), or couple years later buying that 5 bedrrom house thad sold for $300,000 a year earlier, bought at $425,000, then sold at $250,000. I am currently buying real estate, cautiously, some call me a bottom feeder. But I am the same fellow that put his entire ROTH Ira ($40,000 + change) into 20,000 shares of Ford in 2008 at $2,00 a share, against my brokers advice, to the extent the brokerage felt compelled to write me a letter advising me against this move, and then another letter reminding me it was my decision. Yesterdays price was $18+, netting about $350,000 all tax free in the ROTH. I could afford to lose the whole $40,000, so I placed it all on Red. Hindsight; I knew what I was doing, my outcome was as predicted.
My calculus in Mid 2008 when it was clear the liberals were going to take the Government; House, Senate, White House and dribble down the SCOTU, I thought confidence in the economy would be shaken and it was time to take defensive positions. When Ford dropped from $12 to $2, GM and Chrysler bankrupt, it seemed clear the one left standing presented an opportunity.
Real Estate is worrysome. As you know the "Debt Commission" recommended ending the home mortgage deduction. While their "findings" were not adopted, there is still rumblings to end that deduction. We shall see. All that said, interest rates are very low (Pres Carter years folks were paying 18% for 30 year fixed) and there are some good bargains, in some areas, out there. My local neighborhood, prices and days on market have returned to pre-crash levels. Foreclosures and short sales can be opportunities, but I would not go near either. Activities, culture over at Fannie and Freddie are also very worrysome.
Do your homework. Know what you are doing. Never go in over your head. Do your own homework. Know what you are doing.
FWIW, I'll tell you folks the outline of what my AF WSO neighbor has done. One's timing for LT R/E investments can be bad, but in his case it was spot-on. He bought the house in early 2010 out of forclosure. It's located in a very good area of East Hill in Pensacola (e.g., it's one of the less costly homes in the [already good]neighborhood), has ~ 2,000sf main home & a detached carriage house of ~ 800sf that he rents out to another AF flight student. His plans are to live in the home until he gets winged in late 2011 or early 2012 & then rent the home & cottage during his expected 20+ yr USAF career (he'a a USAF Academy grad). When he retires the property will be 100% debt-free and he'll have an annuity for life from its rentals. I sure wish I had had the good sense to do something like this in P'cola when I was here in '66. FWIW.
Don't buy a house with the assumption that you will be living in it for your subsequent tour.
Plan ahead: Buy a Range Rover.
Worst Advice Ever.
Wow. Best threadjack EVAR.
Just make sure she doesn't pull the goalie for the extra attacker in that last minute desperation that she may lose the game. You can never trust those flight school broads. They'll resort to anything to get outta Milton....
