Welcome Guest
Log In | Register )
You last visited December 7, 2016, 5:34 am
All times shown are
Eastern Time (GMT-5:00)

Buying a house with winnings VS financing.

Topic closed. 37 replies. Last post 6 years ago by Perfecttiming2.

Page 3 of 3
51
PrintE-mailLink
psykomo's avatar - animal shark.jpg

United States
Member #4877
May 30, 2004
5120 Posts
Offline
Posted: October 11, 2010, 10:24 pm - IP Logged

So here's the situation...you just won $2 million dollars (after taxes) and want to buy a house. Would you rather buy a house with the winnings or get a mortgage so you have more money to invest?

My thinking is that if the jackpot is really low you would be better off to invest the money and get a mortgage and pay it off in 10-20 years. If you buy a house with the winnings you won't have that much to invest it.

Would banks even approve your loan if you have money from winning the lottery?

PLEASE>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

REMEMBER>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>!!!!!!!!!!!!!!!!!!!

PSYKO>>>>>>>>>>IS>>>>CRAZY>>>>>BUT<<<<<<<<<UR>>>>>>>>>ANSWER>>>IS>>NO>NO!!

UR A SECOND>>>>CLASS>CRAZY>>>>>CITIZEN<<<<<<UR>>>>>>>>>ANSWER>>>piece of crap!!

??????????????????????????????????????????????????????????????????????????????????????????????????!

DO we HAVE any ???? smart JAAK A$$>>>>>>>>>OUT DARE?????222EXPLAIN WHY>>>>>>????????

OBOMO has not cleared UR>FICA>SCORE????!!!!!!!

U could pay a million down 4 a HOUSE$$$$$$$$$$

UR FICA>score is <snip>>still>UR credit i DUMPED!!!

UNtil OBAMO clear's UR>FICA>score>>>>>>>>>

UR><snip>>OUT of no LUCK>FICA>>>!!

UUUUUUU>>>MUST>>>"JACKPOT"!!!!

WIN & PAY>>CASH>>>,,,,,,,,,,,,,,,,,,!!!!

????????????????????????????????????

welcome 22222222 UR OBAMA HELP!!!

but>>>>>>>>>>>>>>REMEMBER>>>>>>>>>>PSYKO>>>>>>>>>IS>>>>>>CRAZY>>>UR>>>>SMART!!!!!!!!


This post has been automatically changed by the Lottery Post computer system to remove inappropriate content and/or spam.

    psykomo's avatar - animal shark.jpg

    United States
    Member #4877
    May 30, 2004
    5120 Posts
    Offline
    Posted: October 11, 2010, 10:53 pm - IP Logged

    buy a houseobamo will$$pay4>>UUU&$

    White BounceWhite BounceWhite BounceWhite BounceWhite BounceLoviesBananaWhite BounceBananaWhite BounceDanceBashChairLoviesGroup HugDanceBlue Angel

    do we HAVE any?????????????????????????????????????????????!!

    HIGH>POWERED>at<VISOR's<<out DARE<<2????????????????!!

    answer?????????????????????????????????????????????????????!

    D>>>>UR>>>>aaaaaaaaaaaaaaaJACKPOT>>>WINNER$$$$$$!!

    BUT>>>UR>>>TREATED>>>>>>JACKPT>>>>"<snip>"$$$$$???!

    ask>>>>>>>>>>>>>>>>TODD>>>>>>>>>>>>>>>>>HOW>>>>>>UR>>>>goverment will set >U>FREEE!!!

    thank U LP>>>>>>>>>>>>>>!!!!!!!!

    only TODD KNOW'ssssssssssssPSYKO is crazy>>>>>>>as>>>>>>>as a FOXXXX!!

    This post has been automatically changed by the Lottery Post computer system to remove inappropriate content and/or spam.

      THRUST's avatar - f35l

      United States
      Member #88435
      March 16, 2010
      397 Posts
      Offline
      Posted: October 12, 2010, 12:36 am - IP Logged

      Buy the house, the car and other stuff...no financing.

      $1,000,000

        rdgrnr's avatar - walt
        Way back up in them dadgum hills, son!
        United States
        Member #73904
        April 28, 2009
        14903 Posts
        Offline
        Posted: October 12, 2010, 12:54 am - IP Logged

        I like having my stuff paid for, always did.

        It's nice not having to make those payments after your ex and her lawyers divvy it all up.


                                                     
                             
                                                 

         

         

         

         

                                                                                                           

        "The only thing necessary for evil to triumph is for good men to do nothing"

                                                                                                    --Edmund Burke

         

         

          Avatar
          Sacramento, CA
          United States
          Member #96354
          August 28, 2010
          159 Posts
          Offline
          Posted: October 12, 2010, 2:00 am - IP Logged

          OwlCreekBridge,

           

          Ky has a valid point to make. Inflation does indeed improve the value of gold, and your assessment of long-held stockpiles of gold is encouraging. However, your valuation is based upon inflated dollars, and not actual costs per ounce. Yes, you may have purchased that gold in 1970 for 100 bucks, but 40 years ago, 100 bucks bought alot more than it does today. I would estimate 10 times, conservatively. Look at fuel costs, home prices, taxes and inflationary pressures. Trading gold directly for goods is a fairly last ditch attempt to barter a deflated commodity. Investing in gold is most beneficial when, as you say, you hold it for the long term. Buy low, sell high. What Ky pointed out is that the future is not as predictable when you wait that long to cash out your portfolio.

            Avatar
            NY
            United States
            Member #23835
            October 16, 2005
            3474 Posts
            Offline
            Posted: October 12, 2010, 1:03 pm - IP Logged

            "Inflation does indeed improve the value of gold"

            One of the problems with thinking that gold is some kind of magic potion for investings is that inflation "improves" the price of  almost everything, but the value of things and inflation don't have a fixed relationship. At the start of that 40 year period that made gold such a great 40 year investment inlfation was very high, ranging from about 6% to 13% through the 70's (Anyone who's over 50 probaly remembers banks being full of signs offering 16 and 17% CD's in about 1980). Gold did roughly double in price in a just a few years, but then dropped again, and there were far better ways to increase the value of an investment over that same period. That was followed by an extreme increase of about 400% in about a year, and that's definitely hard to beat. Unfortunately for anyone who didn't take their profit and put it somewhere else, the value came crashing back down over the next few years, and then remained fairly steady for 20 years before starting up again. Something that  holds a fairly constant value, despite inflation and increases in the cost  of most other commodities, is not a better investment than so many other things you could invest in.

            Once again, the value price of gold is increasing rapidly, but nobody knows for sure what the future will bring. I'd guess that one of the things that drove the price of gold in the early 80's was investment spurred by the inflation of the 70's. Worries about the economy is definitely a big factor in the current price increases. The reality is that the value of anything is based on the demand for it. Paper money has no more intrinsic value than a paper towel with a nice design, but as long as people accept it as having value and continue trading it for things with real value it will continue to have practical value. Gold is no different. It makes pretty jewelry, fairly good electrical connections and a <snip>n fine paperweight. Other than that it's a lot like a paper towel, only less absorbent. You can't eat it or heat with it. All you can do is trade it for things that are more useful to you at any given time.

            Until about 2 years ago the Dow, like gold, was at record highs after a rapid increase. Real estate values were generally very good, as well. You could find plenty of things that with hindsight had been extremely good investments over 40 years, or any other arbitrary period. We all remember what happened over the next few weeks and months. Of course it's possible that I'm wrong, but my guess is that the price of gold will drop substantially in the not-too-distant future.  That's the nature of investments in general. Things tend to increease over the long term, but that growth almost always graphs as a saw tooth profile with ocasional sharp decreases. It's extremely easy to look at things after the fact and se when would have been a good time to get in or get out, but it's impossible to see the future and  know when will be a good time to get in or out.

            I'd love to offer a truly special alternative, but I don't have any magic answers. Like most professionals I'd say diversify, and stay away from any substantial investment in itty bitty nations like Zimbabwe. The only way their economy will cause you any real problem is if you live there or invest there. OTOH, investing in multiple large nations is a fairly safe strategy. Whatever happens you're unlikely to find yourself worse off than people in general. All  realistic investments, without exception, depend on a succesful economy that results in demand for that investment. The only alternative isn't investment, it's stockpiling, and the rules for that are different.  You could potentially trade food, fuel or farmland, but what would you trade it for? Stockpiling is for when your investments won't buy you the things you really need.

            This post has been automatically changed by the Lottery Post computer system to remove inappropriate content and/or spam.

              Goalisamillion's avatar - Lottery-046.jpg
              Cary, Nc
              United States
              Member #84641
              January 1, 2010
              1367 Posts
              Offline
              Posted: October 12, 2010, 4:59 pm - IP Logged

              So here's the situation...you just won $2 million dollars (after taxes) and want to buy a house. Would you rather buy a house with the winnings or get a mortgage so you have more money to invest?

              My thinking is that if the jackpot is really low you would be better off to invest the money and get a mortgage and pay it off in 10-20 years. If you buy a house with the winnings you won't have that much to invest it.

              Would banks even approve your loan if you have money from winning the lottery?

              I personally would buy a house Housein the $150 to 250k range. Then invest the money into a franchise business so the only person im working for is myself !!!! Sell the house and business in 5 years and start all over again !!!! Oh of course within that 5 years I would have spent 100k playing in the WORLD SERIES OF POKER TOURNAMENTPoker!!! lol,...... 

              GOAL, WHAT IS YOUR SHORT TERM GOAL ? TO REACH PHIL IVEY STATUS!!!

              IVEY(This is the best poker player in the world, Phil IVEY!!!)

              Take's a POSITIVE vision to get to that  MILLION !

              Always play where/when YOU have the advantage !!!!!

                Perfecttiming2's avatar - redcross

                United States
                Member #65961
                October 11, 2008
                162 Posts
                Offline
                Posted: October 14, 2010, 2:12 am - IP Logged

                OwlCreekBridge

                " If someone bought a $400,000 houseand paid it off in full the money does nothing. The house might evenlose value. If someone bought a $400,000 house and put 20% down andborrowed the rest they'd have $320,000 to invest. A 15 year fixmortgage is about 3.9% APR."

                One way of looking at what you're saying is, "I can't stand paying you only the $320,000 remaining for the house, let me pay you tens of thousands more over the next 15 years, where do I sign?"

                Those who are truly financially secure will tell you there m.o. is "Heat (utilities), eat (food), and taxes".

                From your example above,  pre-Keating Five S & L scandal people could have just put the money in a  S & L. That was then. Now you're lucky to get 1 %. Stocks tank, gold fluctuates. No one can see that far into the future to know what's going to happen. To have $2,000,000 cash and borrow $320,000 is crazy.

                "Those who are truly financially secure will tell you their m.o. is "Heat (utilities), eat (food), and taxes".

                (Now, these are words that make sense!)

                It does not make sense to me for someone to have $2 million dollars and STILL borrow money to make a purchase on a house! The goal should be to get out of debt, stay out of debt.......Not create more debt.

                You could still make investments, but at least your home would be mortgage-free......and I would hope that at least some of the investments would be income generating..........

                Think of it this way, if you encountered an unforseen, adverse financial crisis in which you lost some of your winnings, at least you would not be a headline that reads "$2 Million Dollar Lottery Winner Now Lives In Motel".