Date: Wed, 12 Jan 2005 04:08:54 CST
From: "John A. Weeks III" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Buy Now or Later
	iQBVAwUAQeT3N/l/I4+O31e5AQGMeAH8DaTkDs+HcEC0hK8OWtKLvplwB0TumEPH
	sJyrEcTkzJZcz93Wykrjo2cRU5yFb7G/YH86e2BBLdCZDKJDCa3c+A==
	=+aKt

In article <1105487937.333312.132880@f14g2000cwb.googlegroups.com>,
 "Dottie"  wrote:

> I am 46 years old and I have never owned a home.
> I currently rent in Los Angeles, CA paying $1,500 a month.
> I am self employed and can do my job from the dark
> side of the moon as long as I have an internet
> connection.  I am getting tried of renting and itching
> to get settled in a home.  I am looking at Diamondhead,
> Mississippi. Great community, slower pace of living, not
> as congested.  I did a spread sheet of pro's and con's
> Diamondhead vs. Los Angeles and Diamondhead won.  I checked the housing
> index and the homes there have increased 4.5% in 2004 vs. 61% in Los
> Angeles in 2004.  I have $50,000 in various IRA
> accounts, regular IRA, Roth IRA and SIMPLE and about $30,000
> available cash.  No debt.

That sounds like good thinking.  If you find a much cheaper
place to live, your standard of living can go up while you
have more money to save for the future.  Great plan.

> I hear that the dollar is loosing 2 cents a week and that
> the ecomony is going to go through a bumpy ride during the
> next 2 years.

The cost of the dollar makes no difference, not unless you
are being paid in Francs or Yen.  A dollar is a dollar when
you get paid in it and spend in it without converting to 
another currency.

> My question is this... Would it be wise to buy now or to
> hang onto the cash for 2 more years and then buy?

I would treat the house as a lifestyle issue, not a financial
issue.  Once you make up your mind on how you want to live your
life, then worry about how to implement that decision in a
financially sound manner.

> I am trying to take into consideration that the housing market
> is inflated and will burst when the interest rates begin to
> climb.  And the dollar is coming down and people are maxed out
> on credit cards and all of the banks have been giving everyone
> and their mother's loans who can't even qualify for them so
> it has been predicted that the "shit will hit the fan". James
> Turk & John Rubino predict another depression on the horizon.
> Would it be better to have my money in real estate or commodities
> during the next 2 years?

If you are worried about depressions and panics and economic
collapse, then I would suggest buying guns, ammunition, and
military style food packs.  If it gets bad, people are not
going to wait in line for soup like they did in the 30's.
I know that I will not be in a soup line if I can steal if
from someone else.  As a result, I wouldn't let this kind
of scenario affect my planning.  If things get bad, life will
be turned upside down, and you really cannot plan for that.

-john-

-- 
======================================================================
John A. Weeks III           952-432-2708            john@johnweeks.com
Newave Communications                         http://www.johnweeks.com
======================================================================