Today, they have a growing stash, as well as a bold goal to amass $2 million in savings within the next 15 years.
Both Jeff and Leonora, 49 and 52, are registered nurses with advanced credentials.
Even the decision to enter the medical field was based on the couples' desire to secure high paying, dependable work. They went back to school for their nursing degrees (paying cash of course) and graduated in 1996.
I would like to hit the $1 million mark before I'm 50 (in 13 years) but I'm way behind as I was a SAHM for a couple of years and worked part-time while my kids were small. My husband will be no help in this regards so I'm on my own in my quest. But I think I can do it.
If you have the inside track like you do, yes, buying in an "up and coming area" is the way to go. The problem is every Tom, Dick and Harriet thinks they know what area is 'up and coming'. You would not believe the clients I've had to talk out of buying and putting themselves WAY OUT for overpriced property JUST because they thought they had the inside track.
Well, the trick is ... what's up and coming today may not be up and coming tomorrow. I was just reading a real estate article that talked about the 20 largest growing boom towns as far as population growth. Eight of them are in California in cheaper inland towns where expensive places like San Francisco have prompted people to move further inland to save money on housing.
BUT ... prices are now starting to fall a little bit in the Bay Area. Who's to say that inland growth will continue if coastal areas become a little more affordable? On the other hand, those prices are dropping because interest rates are going up so ... even with cheaper prices, overall housing costs could still be high with higher interest rates.
It's very tricky business trying to predict these things. We literally travelled all over the state looking for a house and decided we weren't going to pay more than $150K for a house ... period ... regardless of the crazy market. We walked away from many deals where sellers were trying to jack up the price but, we refused to pay any more than that. It was the only way we figured we wouldn't get caught in a negative equity situation in a down market.
... I was just reading a real estate article that talked about the 20 largest growing boom towns as far as population growth. Eight of them are in California in cheaper inland towns where expensive housing in places like San Francisco have prompted people to move further inland to save money on housing.
....... It's very tricky business trying to predict these things.
:typing
Lizz this is so funny! The article I read said the up and coming areas with regards to real estate (not pop.) are in Texas (McAllen being #1, Dallas, etc) and a few mid-size cities in the Midwest!
Even the experts can't agree on where to buy! HAHAHA
I still think SMK is on to something if they build reasonably priced homes!
Lizz this is so funny! The article I read said the up and coming areas with regards to real estate (not pop.) are in Texas (McAllen being #1, Dallas, etc) and a few mid-size cities in the Midwest!
Even the experts can't agree on where to buy! HAHAHA
Exactly. This article was based on U.S. Census figures for the top 20 towns in terms of greatest percentage of growth. My area is one of them.
But would I buy here now? Hell no. Prices have doubled since I moved here a couple of years ago. By the time the population data comes in, and people figure out it's a boom town .. the cheap stuff is gone, and you end up paying too much.
That's why it's so tricky. You gotta figure out the potential before everybody else does. We got lucky. This is a hick town and some people were already moving here but ... shortly after we bought our house KB homes came in with ten developments. All the other speculators followed them and the market went crazy.
The key, for us, was could we buy cheap but still live in an area that was within reasonable commuting distance of lots of good paying jobs. There were lots of cheap areas, actually, but not many with good job prospects and growth potential.
we have moved from the west to the midwest and several places in between buying both homes and un/under developed land and we have never lost on an investment. we haven't always sold at the right time so the return on our investment would be less but still came out over and above. a couple of times our investment has doubled when we purchased undeveloped land at the right time and built. real estate unless purchased in areas with no economic predictability is always a good investment imho
If you guys ever get into developing your own housing developments or small communities, you will surely make good money.
Try to get the husband to consider retirement communities for active seniors. Seniors love small luxury homes, clubhouses with tennis courts, swimming pools, gyms and dining facilities. If you retirement community also includes an upscale retirement home for when they can no longer live alone, lots of seniors will snap it up as "one stop retirement living shopping" That's the real estate investment I am into at the moment. I stopped flipping 18months ago.
Good job SMK!
This is why my husband and I are going to start setting up trailer parks or MHP's. We have talked to many who have been in the business for years and it pays extremely well, even when taking into account the upkeep (and yes, the ones who have been in it awhile were millionaires, though you wouldn't guess it to look at them).One MHP owner rents units mainly to seniors, it's like a MHP retirement community and this takes a lot of the hassle out of beating on doors and eviction notices when people won't pay their rent. Most seniors will not put you through this. Of course, you can't discriminate but you can encourage certain aggregates of people to rent (like seniors). As for the nonpayers, the laws are made to benefit the renter, not the owner, which is why it is better business to rent by the week (then you don't have to wait four months to evict nonpayers but 4 weeks). We just set up a trailer on our property for my father-in-law and boy what a lot of work, we installed the septic and water line ourselves and are now working on the electricity. My hubby and I believe that it will take a few years to get going to where we could expect to profit from anything (we are trying to do it with as little debt as possible) but once you are going I believe it will be worth it....and I can kiss nursing goodbye!
Just my opinion but ... if I ever get back into real estate again, there's two things I won't do: tenants and condos. No matter how well you screen applicants, there's always that one tenant who doesn't pay and drives you crazy because the laws do favor them. Going to court isn't much fun either. You've also got to have renter's insurance because the property damage can really cost if it exceeds the security deposit. It can be a real hassle dealing with the insurance company and trying to fix up the place without any rent coming in. One bad tenant can potentially wipe out any other profit you're making.
Condo associations will drive you crazy also with all of their rules. You can't do much with your property either without their consent which, of course, you can't get a lot of the time. The laws favor them also. I once committed the cardinal sin of putting a washer and dryer in my unit. The association actually made me take it out because they said it violated their rules.
If I buy real estate again (outside of my own house) it will probably be land. No tenants, no association, and not much upkeep since there's no house to worry about ... just land. Besides, if you're lucky enough to pick one of those boom town areas before they take off ... the land costs a lot less, and it appreciates more than the houses do. In my area housing prices doubled but, land values tripled.
we have some friends down in Ventura county and I am truly amazed at the prices of homes. There 1800 sq ft old ranch ust got a tax appraisal of 900,000 dollars! I just couldn't do it. The older I get, the cheaper I get... lol My house cost 185k 2 years ago and it is now worth about 300k, I have no doubt that the "value" will increase for a while longer but figure the "real value" is closer to 270-300k due to size amenities and neighborhood and the past market before it got so hot. I can't imagine paying 300k for a home. Glad we bought our home when we did, because it is getting out of hand out here. Still, nothing like California though...
Of course, you can't discriminate but you can encourage certain aggregates of people to rent (like seniors).
Actually, seniors are the one aggregate for whom it is still legal to discriminate. That's how so many 55+ parks have been set up, and they're perfectly legal. Oddly, though, there are many landlords who still think it's ok to refuse children. Unless it's a designated senior community, they can't do that.
I can't decide whether, when my teenager flies the coop in two years and I'm finally able to downscale to where I want, I should go ahead and buy my trailer in a family community, or wait five more years until I am 55. She might still be living with me when she finishes high school, but I won't have to work around her needs. She'll have to work around mine. I wish I could do it now, but there are no MH communities in this school district and she doesn't want to change schools. I already made her change last year (cross-country move), so once was enough guilt! So maybe I'll be headed to your park. :)
Specializes in Critical/Intensive and rehab nursing..
It sounds like that couple doesn't have children either.
:yeahthat: I agree with that one. Also did anyone ever ponder the fact we have all been sold down the track of the traditional savings with 401 K's and other terrribly non-secure investments that we are "sold" so much on?
Seems the more I try to invest (not been much last three years as recovering from an accident), the more the market crashes and I am quite well "diversified." In my career 401K's and Perf Fund, even with some slightly educateded choices, they change the plan for each choice contstantly. Thereby, turn into more stock or foreign investments that have higher risks and I of course don't look at every day and say what the heck and change. Oops!, can't change, too soon.etc..
Good luck to all. I am going back to school even if I cannot aford it as it will probably be a necessity. I also have found that people are not taking into account that if you have a savings and are also trying to supplement your income to keep at least your present (without frills) lifestyle and to look ahead at increased costs for your medical/healthcare, you will be sadly hit!! By what? By the fact you were smart enough to plan, but the government as well as some of the savings plans out there will restrict you on the amounts you can get and will raise the time(age) you
can aquire it. It is already happening. You planned and you put money into all of this to just be told you cannot have your fair share or what you expected because the age limit was raised to accomidate those that did not plan ahead and the people who never as well as there families, never put a dime into it. These plans, while occasionally a great savings, can bomb and every hard earned dollar you put in, could be gone. Do not then depend on Soc. Sec. as it will either be gone along with all you put there, or will be the funding for the poor and disabled ( do not hate me for this one, I just prefer to choose my own charities or help people myself and not leave it to the corruption of the government) .:trout:
Real Estate is still probaby the best as long as you are aware of the sharks in this "get rich quick" area. There is just about nowhere in this country that if you buy a piece of land, it will not appreciate. However beware that the emminent domain laws in your state can also take that luxury away also. As you do for your career, you must study up to think you will ever be millionares. It takes more than faith in your stock broker/funds manager, remember even if they do not charge you directly for their advice, then it is because of the kickbacks they receive from the investments they sell you on.:wink2: I have lost many thousands of dollars by a reputible company in the business that I will not mention as really you have to watch all of them regardless of there touching commercials of how they want to help you:rolleyes:,
that when you question them on it, they just then blame it on the market.
We seem to have a great guy now who we took a chance to go with him as he left a top name that we had our account with him at (on TV, very touching ads about their clients) company to strike out on his own to continue his investment ideas and stradigies for his clients. Very professional but also not the typical "hard, you must be crazy if you don't take this :balloons:deal" type of planner. He got tired of the company not advancing their ideas to the present and also the push of "bad" stocks and investments just because the company got great perks and kickbacks regardless of what it did to the customers. He has so far with the amount we put in a few years ago, managed to not ever to have a loss of funds. We may not make as much as if we took higher risks but never thousands of dollars lost like before. At least break even. Would you bring home your paycheck and just give it all away to someone and then tell your family "oh well, I guess it's just lost". Don't think that would fly too often especially if the bills were'nt paid and the groceries were'nt bought.
Be careful and be aware!!!!! You can only make money if you spend or save money or place it wisely and watch it carefully and become educated on the best ways to keep it. :studyowl:
That is impressive. I could see DH and I doing that if we didn't have children. We save 25% of our gross income every month and max out our Roth IRAs every year and have other investments we contribute to as well as the mas 403B pre-tax at the hospital where I work.
Sheri257
3,905 Posts
Well, the trick is ... what's up and coming today may not be up and coming tomorrow. I was just reading a real estate article that talked about the 20 largest growing boom towns as far as population growth. Eight of them are in California in cheaper inland towns where expensive places like San Francisco have prompted people to move further inland to save money on housing.
BUT ... prices are now starting to fall a little bit in the Bay Area. Who's to say that inland growth will continue if coastal areas become a little more affordable? On the other hand, those prices are dropping because interest rates are going up so ... even with cheaper prices, overall housing costs could still be high with higher interest rates.
It's very tricky business trying to predict these things. We literally travelled all over the state looking for a house and decided we weren't going to pay more than $150K for a house ... period ... regardless of the crazy market. We walked away from many deals where sellers were trying to jack up the price but, we refused to pay any more than that. It was the only way we figured we wouldn't get caught in a negative equity situation in a down market.
:typing