jdmulloy

jdmulloy t1_jabd39o wrote

Depending how much equity you have an how big of an upgrade you probably could get that payment lower than $3500. You'd have a big down payment selling the current house. Although if you have a nice rate that's a good incentive to stay put. Even going to a similarly priced house would increase your rate and cost.

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jdmulloy t1_jabcrz7 wrote

He knew enough to stay away in the years prior to 2008. BH does have a resident realtor business, so he has some insights into how the market is doing. He's also explained that real estate investing isn't a good fit for him and BH because it's rarely mispriced at a discount like business/stocks are and BH has the wrong incorporation/tax structure for real estate ownership.

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jdmulloy t1_ja6h9mh wrote

They also don't want to dilute stock that's used for compensation. It's also an alternative to giving dividends where they don't have to be concerned that investors will expect the same or higher dividends in the future. There's also a tax advantage for some investors in getting returns in appreciation instead of dividends, because unrealized gains aren't taxed, but dividends are. They can avoid taxes via charitable donations and margin loans.

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jdmulloy t1_j9xa6f0 wrote

As others have said, keep it in cash or money market. Anything else is too risky with such a short time horizon. Also while I wouldn't bet on a housing crash, if there is a good buying opportunity in the next 2 years, it's likely to be when the stock market is down, so better to keep your cash liquid so you can be ready when everyone else is down, unless you lose your job.

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