LATHER, RINSE, REPEAT...

There's no denying the fact that real estate is a great long-term investment...if you look at it with a long-term perspective, that is.  You can't really go wrong when it comes to investing in housing - but the name of the game isn't to repeatedly borrow against an asset...the name of the game is to actually OWN it...or at least most of it so you can leverage your way to wealth! 

How to buy a house with 5% (or less) down payment - Living On The Cheap

Unfortunately, homeowners often think of their investment as a giant ATM machine, and plenty of them are eager to cash out every chance they get for as much as they possibly can.  Some people cash-out to play...perhaps a vacation or to fund a wedding - but people cash- out to pay off other debt with higher interest rates; and they do so without blinking an eye about beginning the 30-year debt cycle all over again. Bye-bye, equity.  So much for that long term investment perspective - it doesn't take much to go from asset to liability with this strategy!   Lather, rinse,...

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Do You Seriously Believe That Real Estate Will Always Climb? Think again!

No doubt real estate is a great investment, but long-gone are the days where prices soared overnight....a time when even a blind monkey could make a quick dollar on a good flip.  But what happens when prices don't soar like you thought they would?  Worse yet, what happens when they drop?

What goes up, must come down...including real estate, and it's for this very reason that it's a good idea to build your own equity as fast as you can instead of waiting for the market to build it for you.  The idea of bringing money to the table to sell a house may not be familiar to YOU, but it's a common occurrence for people in need of selling when the market hasn't produced the gain sufficient to cover the cost of selling and/or closing.  

People investing in the stock market understand that what goes up must (eventually) come down, while people investing in real estate never expect to get caught short.  The stock market "resets" itself and the real estate...

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Robbing Peter to Pay Paul - Yep, That Sums it up!

To rob Peter to pay Paul means to take money from one source to give it to another. Usually, robbing Peter to pay Paul means taking the money to pay off one debt to pay off another debt.   Basically, It is a situation where there is not enough money to go around and one must choose which debt is more urgently in need of payment.  Yep, that pretty much sums up the way most Americans are managing their finances these days!

I'm not sure how it happened, but somehow people see debt as a good replacement for cash; in this case, the abnormal has become the norm.   They'll open a new credit card account with a better interest rate to pay off another, and before you know it both cards are maxed out because they couldn't resist using plastic when they wanted to spend what they didn't have - they Rob Peter to pay Paul. 

Most people refrain from adding anything to a savings account for "a rainy day" as long as they have a little room on a...

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