What to do with the house sale proceeds?

Robgetty · September 21, 2007 12:42PM

We finally closed on our house in the Shenandoah Valley, and have a nice $73,000 check in hand.

We were planning on rolling the money into the down payment for the next house (we are renting now.)

HOWEVER, just think of all of the nice coins that we could add to the collection!

So, what does everyone think?

Options:

1- Buy an Amazonian pattern, and go out to dinner with the $50 I'd have left. (Who needs a house? Keep renting!)

2- Buy a nice 1872 gold proof coin for $20,000 - $30,000, and accept a higher mortgage since the down payment would be less.

3- Accept the fact that I'm a collector who views buying a $1,000+ coin as a VERY RARE event, and roll the money into a new house.

speety · September 21, 2007 12:46PM

Congrats on selling the house and I hope this is a joke thread....everyone knows that #1 is the way to go!

Robgetty · September 21, 2007 12:48PM

My wife has been historically fussy over the idea of a roof overhead and food on the table being more important than coins.

I don't know why she can't get her priorities straight, but she is still the best thing that has ever happened to me, so I humor her usually.

Topdollarpaid · September 21, 2007 12:48PM

I would say buy a new house and

wait to buy coins with your regular income.

RYK · September 21, 2007 12:49PM

3

Last I checked, you cannot live inside a coin (though many have tried). By the way the choices have been worded, I think that you know the answer.

Congrats!

timber100 · September 21, 2007 12:50PM

Knowing very little about coins but more about human nature, buy the coin (s) you always wanted, not more than $3,000, put the rest into the house and everyone will be happy.

UtahCoin · September 21, 2007 12:53PM

If I hadn't bought and sold a lot of houses then, I wouldn't be able to buy coins now. Take your time, the money will come.

GrumpyEd · September 21, 2007 12:53PM

2 choices:

Go with #3 (sounds safe)

Hide all weapons, put the wife in a padded cell and go with 1 or 2.

WTCG · September 21, 2007 12:58PM

Spend a few thousand on coins or other necessities such as an HDTV, then use most of the money towards the down payment for your new house.

grabba · September 21, 2007 1:02PM

Choice 4 - Spend most of it on wild women and booze and then waste the rest.

BobaFett72 · September 21, 2007 1:03PM

treat yourself to $1000 coin. put the rest towards the new house.

Life is TOO SHORT. live a little

LeeG · September 21, 2007 1:06PM

<< treat yourself to $1000 coin. put the rest towards the new house.

Life is TOO SHORT. live a little

>>

Robgetty · September 21, 2007 1:07PM

I do like the "buy something in the $1,000 - $3,000 range compromise.

I wonder if I can 'sell' my wife on it. It seems reasonable. (Heck most of my keys have gone up in value nicely.)

coinsarefun · September 21, 2007 1:12PM

<< 3

Last I checked, you cannot live inside a coin (though many have tried). By the way the choices have been worded, I think that you know the answer.

Congrats! >>

I could not agree any more. And those words are spoken with truth and wisdom.

mrearlygold · September 21, 2007 1:14PM

Short term before you buy again? If you "must" spend that money on coins, buy slightly better ST Gaudens in 65 or generics in 64-66. Otherwise, interest bearing accounts are a good thing.

Lakesammman · September 21, 2007 1:50PM

Move to Seattle, one of the few places where the market is still strong. Then, convince your wife you can't afford a house, keep renting and buy the Amazonian.

Longacre · September 21, 2007 1:54PM

Just give the check to a coin dealer and tell him to pick you some winners. Or a stock broker. Or a financial planner.

OPA · September 21, 2007 2:26PM

Go to Atlantic City & "blow" a few bucks....who knows, you may end up a winner, if not ... I'd pick door # 4....

oxy8890 · September 21, 2007 2:30PM

If you love your wife go with option 3.

I thought 49er fan RE settlement checks were all $500,000 or more

WTCG · September 21, 2007 2:48PM

<< If you love your wife go with option 3.

I thought 49er fan RE settlement checks were all $500,000 or more

>>

That's what I first thought until I noticed that it was for something in the Shenandoah Valley.

TwoSides2aCoin · September 21, 2007 2:55PM

PayPal money market account just until you decide

seemyauction · September 21, 2007 10:04PM

Its a perfect time for a mortgage. Interest rates are very low at present. Make sure its a fixed rate.

The Fed's just cut the rates 1/2% so you will mostlikely see another Housing boom.

Keep your cash liquid, most brokerage firms offer money markets paying 3-4% they out perform banks, so if rates go up they do too.

When making a down payment I would only put down 5%. If the lender wants more find another lender, there are 1000's of them out there.

AL

roadrunner · September 21, 2007 10:27PM

If your housing area has not experienced massive price increases over the past 10 years then I would probably tell you to relook into another mortgage. Find an area that is growing and not yet subjected to urban sprawl. But if you lived in most areas of the northeast, Florida, or California I'd say hold off because 90% of those areas are going to correct much further over the next couple of years. Remember that your first few years of mortgage payments won't get you squat in paying down the principal. On top of that you'll have closing costs, property taxes, and housing projects your first year. That will cost more than your new rental. The money would be better spent in tangible assets that are going somewhere in the next couple of years. Whether you throw away your monthly payment or a mortgage payment for the first couple of years what's the difference (only downside is locking in a decently low interest rate.....and odds are that rates will be up over the next few years imo as there is no other way to shore up the slide in the dollar).

I like Deadhorse's idea. If I could go back 3 years and sell my home at the peak like I had intended (and put the profit into silver bullion or other similar asset) I would do it in a heartbeat. The gains that we will see in the precious metals over the next few years will be rather exciting......a once in 30-50 year type thing. Many of us will never get to see it again. It's not about the long term investment right now, it's about what happens in the 5 yr. sweet spot of a 10-15 year commodities cycle. How many chances will we get to see China and India industrialize their nation for the first time?

roadrunner

GUINZO1975 · September 22, 2007 2:31AM

Take the 73,000 dollars and put it into a high yield CD or invest some of it on gold. Please do not purchase a house right now since it's a falling market. Why would you want to catch a falling knife? Wait til next year when the prices are even lower. Right now you should sit back, relax and make that money work for you. BUY GOLD!

OPA · September 22, 2007 2:34AM

<< PayPal money market account just until you decide

>>

Why not...it's paying 5.2%

Mercury10c · September 22, 2007 2:41AM

Don't be stupid. All are bad choices.
Send a cashier's check to me. PM me for my name and address. Thanks.

GUINZO1975 · September 22, 2007 2:48AM

I have an even better idea than putting your money into a CD. I just opened up an HSBC Online Savings Account. It's actually paying me 5.05%. The beauty of it is that I can take the money out any time I want unlike a CD. If you have Citibank, they are offering 4.75% for an online savings account. This stuff is fairly new and I believe most banks are doing it. I recommend it to all the members of this board. Go to the bank web sites and check out what they're offering for their Online Savings Accounts.

Barry · September 22, 2007 3:21AM

Use the money to redo the kitchen in granite.

Gemineye · September 22, 2007 3:27AM

Spend it all on hookers and booze...and go back to the little woman and plead for mercy......!!!....

mrearlygold · September 22, 2007 3:33AM

<< 

<< PayPal money market account just until you decide

>>

Why not...it's paying 5.2%

>>

Paypal MM is paying 5.2% ?? Can you still use the account for purchases like you do normally while the balance sits and collects interest??

BobaFett72 · September 22, 2007 3:41AM

many local banks have money market acct. paying at leat 4.75% or higher (mine included)

" so you will mostlikely see another Housing boom"

Maybe in ten years...that bubble has long since burst in most areas and folks are losing their homes left and right. I still have friends tied into 40! year mortgages, some are only paying the interest because its all they can afford (they have all fallen into the trap of buying homes they really dont need)

TwoSides2aCoin · September 22, 2007 3:52AM

<< 

<< 

<< PayPal money market account just until you decide

>>

Why not...it's paying 5.2%

>>

Paypal MM is paying 5.2% ?? Can you still use the account for purchases like you do normally while the balance sits and collects interest?? >>

abso

lutely

But, it's hard to sleep in a money market account and home ownership offers tax incentives that renters never get and they stopped making land a long time ago.

mrearlygold · September 22, 2007 4:55AM

<< 

<< 

<< 

<< PayPal money market account just until you decide

>>

Why not...it's paying 5.2%

>>

Paypal MM is paying 5.2% ?? Can you still use the account for purchases like you do normally while the balance sits and collects interest?? >>

abso

lutely

But, it's hard to sleep in a money market account and home ownership offers tax incentives that renters never get and they stopped making land a long time ago. >>

Usually I'd agree with that however with flushing sound occuring in real estate in our neck of the woods, it sounds like a good place to park a few bucks while waiting to get a terrific deal which may or may not take a year or more.

Some say that a similar debacle like what happened in Japan cannot happen here.

Why not?

roadrunner · September 22, 2007 6:38AM

But, it's hard to sleep in a money market account and home ownership offers tax incentives that renters never get and they stopped making land a long time ago.

Please tell me what these tax incentives are as I'd like to know.
My home has been decreasing in value 5-10% per year the last 2-3 years. While I'm losing that I'm paying 1.5% in property taxes and another 2-3% in annual maintenance/upkeep. Itemizing taxes might save me 1.5% per year. Now tell me how this net negative 7% to 13.0% (loss) per year is beating out a rental home that I could secure in my area for 5% of my current home's value?

The slow rate of paydown on the principal is not being offset since the home is not appreciating any longer, and won't be for at least a few years. I figure to just break even with a rental I need to have my house appreciate 3% per year.....and that's not happening for a while. I might also add that in the last real estate down turn in the northeast, the former owner of my home saw 33% of its value evaporate before they decided to bail out (that was 1996 at the very bottom of the market). So why not sell today, plop that down into something earning money for a change, even a CD. Though I would prefer gold or silver or both. Like gold and silver bullion, land is indeed generic. It can always be bought, sometimes for more and sometimes for less. But there still is no shortage and plenty to go around.

roadrunner

manymortages · September 22, 2007 8:25AM

Depending where you live house prices may decline 20-30% over the next few years. So I'd keep renting unless you know for sure that you are going to live in the same house for at least 7 years. Besides renting is still cheaper.

dizzyfoxx · September 22, 2007 9:11AM

How about tracking down a 1936 Gettysburg commem in PCGS MS68.

Robgetty · September 22, 2007 9:37AM

Thanks for the suggestions!

TwoSides2aCoin · September 22, 2007 9:49AM

<< Thanks for the suggestions! >>

Now that we've come full circle , might I suggest you pack up the squaw, set up a tee-pee and do some serious buffalo hunting. (from a numismatic standpoint )

roadrunner · September 22, 2007 9:52AM

Robert Getty - Lifetime project to complete the finest collection of 1872 dated coins.

You should check in with one of our other forum members who had the same goal. Not sure his current status.

roadrunner

TwoSides2aCoin · September 22, 2007 9:58AM

Oh, and to answer you RoadRunner

...
My property taxes went up a grand last year.... That's an extra grand of my income I don't have to pay personal income tax on. Pretty cool, huh ?

Hugegut · September 22, 2007 10:34AM

Your answer is here :
Link

How much could property tax be on a $10,000 house? Surely you can pull in that much in rent. Can't be much of a downside buying a house that cheap. They can't stay that low forever.

TwoSides2aCoin · September 22, 2007 10:39AM

<< Your answer is here :
LinkHow much could property tax be on a $10,000 house? Surely you can pull in that much in rent. Can't be much of a downside buying a house that cheap. They can't stay that low forever. >>

Didn't Patton say something to the effect that : ' Success is determined by how high one bounces once he hits bottom ' ?

Don't quote me though....

What to do with the house sale proceeds?

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