(Topic ID: 110193)

Does buying my first house mean the end of pinball?

By eggbert52

6 years ago


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  • Latest reply 6 years ago by rommy
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    There are 230 posts in this topic. You are on page 1 of 5.
    #1 6 years ago

    Hey guys. I'm buying my first house and it's really great with a pool. I'm doing pretty well job wise but I'm also 45 going on 46. My 401K isn't the best but I'm making really good money and have been contributing the past few years so not as bad as I was. Also, I have roughly $3.5K per month in leftover money after expenses. So without setting up a two hour meeting with Dave Ramsey, does buying a house mean the end of buying new pinballs? I'm single with no kids and zero debt with the exception of my Acura TSX of which I owe roughly $16K at 1.99%. Oh...and of course the new house which is going to bring a mortgage of $1656 per month. I'm currently renting for $1365.

    Anyway, my friend says the party is over but I would like to get your thoughts.

    #2 6 years ago

    find you a significant other that makes good money and at least is interested in pinball somewhat and build a collection together.
    you don't have to own all new sterns. there's plenty of fun Sega and W/B games you can stuff in the basement.

    #3 6 years ago

    Congrats on the purchase, nothing like owning your own digs. I hope there's plenty of room for pins. I see you've got two pins already? (Ha - I just posted a rant against IM). I'd enjoy them to the max and maybe swap them out at some point rather than expand the collection. You can almost do this on a cost neutral basis. In the meantime, trhow everything at your mortgage and get those repayments down. This might take a few years but getting the principal down early is the key. This will free up more cash down the track when you can start adding to the collection again. And by then, you should be able to get some pretty good 2nd hand prices on HUO TWD, TBL, TH etc or whatever floats your boat. Good luck anyway and enjoy the pool!

    #4 6 years ago

    A brand new game may be out of the question, for a little while. Get room mates, their room rent will help with the mortgage. Expenses like A/C, Electricity, Federal and Local Taxes will also add up. In a few months or so you should have everything figured out.

    #5 6 years ago
    Quoted from dluth:

    In the meantime, trhow everything at your mortgage and get those repayments down. This might take a few years but getting the principal down early is the key.

    Wow...we really think alike here! Thanks for the advice. It's my understanding that in the first 7-10 years you're only paying off like 20% towards principle.

    #6 6 years ago
    #7 6 years ago

    Dump the 401k and you will have pinball.

    #8 6 years ago
    Quoted from eggbert52:

    Wow...we really think alike here! Thanks for the advice. It's my understanding that in the first 7-10 years you're only paying off like 20% towards principle.

    Yeah, a huge amount is going into interest early on. This is why I'd direct that $3,500 excess you have each month into the mortgage above your regular payments. It would be handy if you have a redraw facility so that you can take this money out again in an emergency - I'm not sure how your mortgage is structured. But the principle is the same - get that sucker down as quickly as you can!

    #9 6 years ago

    You should have received an amortization schedule at closing. Look at it closely it will tell the whole story. Pay as much extra as you can at the beginning it will save you thousands in the long run. Would need to know more to teach you more. 20% down? PMI? Are you disciplined with your money?

    #10 6 years ago

    There's a reason you called yourself eggbert.

    #11 6 years ago

    Your friend is high. No kids, like me. You got it made in the shade!!

    #12 6 years ago
    #13 6 years ago

    Holy Christ! I have 3 kids, a wife, single source of income and work for the government. I would give a nut to have 3500 in expedible income. With that in mind, you will be just fine with fueling your pinball addiction.

    #14 6 years ago

    My order is wife expensive first

    #15 6 years ago
    #16 6 years ago
    Quoted from eggbert52:

    My 401K isn't the best but I'm making really good money

    Quoted from eggbert52:

    I have roughly $3.5K per month in leftover

    After all that, you own a Acura TSX,??
    your going to be just fine.

    #17 6 years ago

    House is paid for.
    No kids.
    No wife.
    It still takes a minimum of $30,000 a year just to live---(in Mi).

    #18 6 years ago

    I'm buying a new house soon as well and for me it means the start of pinball ownership and establishing a gameroom/mancave.

    #19 6 years ago
    Quoted from cheesewhisperer:

    It still takes a minimum of $30,000 a year just to live-

    Not without a serious addiction..

    #20 6 years ago
    Quoted from limelime20:

    After all that, and you own a Acura TSX,??
    Your ass is so tight, you could shit in a tobassco bottle , and not touch the sides, your going to be just fine.

    OMG thats is fricken funny right there!!! BWWAAHAHAHAHA! i was thinking the same thing!! seriouly though your monthly expenses have gone up 300.00 +what ever your property taxes are.
    get a roomate to supplement your income if your really stressed about it.
    and pay your mortgage weekly, that makes a huge diff for some reason, not really sure how but my wife pays on all our houses that way and it knocked years off them.

    #21 6 years ago
    Quoted from limelime20:

    Not without a serious addiction..

    thankfully, not all addictions are serious.

    #22 6 years ago

    I don't think $75 a week more is going to end your pinball dreams

    #23 6 years ago
    Quoted from cheesewhisperer:

    thankfully, not all addictions are serious.

    Or expensive? give us an example..

    #24 6 years ago
    #25 6 years ago

    Does the house have a basement? Yes? You got pinball!!

    Ignore all other factors...

    #26 6 years ago
    Quoted from limelime20:

    Or expensive? give us an example..

    cheese.

    #27 6 years ago
    Quoted from eggbert52:

    I have roughly $3.5K per month in leftover money

    Sounds like a pin a month to me!

    #28 6 years ago
    Quoted from eggbert52:

    I have roughly $3.5K per month in leftover money

    Yes, I was like you before.... marriage

    Wife
    House
    Wife
    Kids
    Dog
    Wife
    Wife
    Car
    Wife

    = Broke

    #29 6 years ago

    Ok, I'm not Dave Ramsey, but the guy makes a ton of sense. First off, as I read it you have a lot of surplus. Just get that debt out of the way and you are solid money. I'd put more in retirement if I had it. To me it looks like you have more than of enough funds for fun time.

    My experience is the single dudes have the most money and toys. This comes from a married guy with an ex, child support for one kid, and four others with my current dearly loved wife. Marriages are expensive.

    #30 6 years ago
    Quoted from legotech1:

    Pay as much extra as you can at the beginning it will save you thousands in the long run.

    Or look at how low interest rates are and what sort of returns you can get from other investments. I have found that I can return for myself well above my mortgage's interest rate from investments, so to me it makes sense to pay off the house later and invest the extra money for a higher return now.

    The other benefit this gives you is if in a year god forbid you can't keep making your payment for whatever reason, with the money that I have squirreled away in my investments I can float myself for a long time.

    Having said that, you have to be okay with some risk in investments this way. I did my research and put a pretty big chunk of money into an investment about two years ago that within four weeks lost 1/3rd of it's value. If that sort of risk isn't for you, then don't go for it, but if you don't mind, I find it a HUGE peace of mind to have my money elsewhere.

    #31 6 years ago
    Quoted from eggbert52:

    Hey guys. I'm buying my first house and it's really great with a pool. I'm doing pretty well job wise but I'm also 45 going on 46. My 401K isn't the best but I'm making really good money and have been contributing the past few years so not as bad as I was. Also, I have roughly $3.5K per month in leftover money after expenses. So without setting up a two hour meeting with Dave Ramsey, does buying a house mean the end of buying new pinballs? I'm single with no kids and zero debt with the exception of my Acura TSX of which I owe roughly $16K at 1.99%. Oh...and of course the new house which is going to bring a mortgage of $1656 per month. I'm currently renting for $1365.
    Anyway, my friend says the party is over but I would like to get your thoughts.

    Dude I'm married with 4 kids, a business, and a mortgage. I still make the dream happen. Don't believe the hype, think of it as you are getting more room for pins, not more expenses.

    #32 6 years ago

    Get youtself a good financial advisor and you'll be fine. For house, for fun, for life. Consider his/her fees an investment in your peace of mind. You're in a better situation than the 99%ers who were camping out in New York.

    #33 6 years ago
    Quoted from JonH123:

    Houses are expensive.
    Pinball is expensive.
    Wife is expensive.
    Kids are expensive.
    In that order. I think.

    Wife, then kids, then house, then pinball.

    Wife and kids are what i call ever increasing expenses...

    At least with a house, the cost of the house is the cost of the house. Maintenance is a different issue.

    It is a hell of a lot cheaper to maintain a house than it is a wife.

    #34 6 years ago
    Quoted from goatdan:

    Or look at how low interest rates are and what sort of returns you can get from other investments. I have found that I can return for myself well above my mortgage's interest rate from investments, so to me it makes sense to pay off the house later and invest the extra money for a higher return now.
    The other benefit this gives you is if in a year god forbid you can't keep making your payment for whatever reason, with the money that I have squirreled away in my investments I can float myself for a long time.
    Having said that, you have to be okay with some risk in investments this way. I did my research and put a pretty big chunk of money into an investment about two years ago that within four weeks lost 1/3rd of it's value. If that sort of risk isn't for you, then don't go for it, but if you don't mind, I find it a HUGE peace of mind to have my money elsewhere.

    Is the interest on your mortgages (on your place of residence) deductible in the US? This makes a big difference. Here they're not so the rational thing is to pay it off as soon as possible, and if you are going to have any debt, have the type that is set against an investment (be it rent producing property, shares etc) so that the interest payable is then tax deductible.

    #35 6 years ago

    Heck now that you will own a home is a plus for purchasing more pinball machines.
    The interest paid on the house every year is 100% tax deductible vs just paying rent at zero % , which usually by itself is enough in tax return to pick up a nice game every year or two depending on your taste.

    #36 6 years ago

    If you love your job and you don't mind working well into your 60's, the 401-k is less important. I want to start doing something different when I turn 56-58. I expect that my new job will only just pay the bills, so I want to be done saving by then.

    #37 6 years ago

    Wait....I'm confused. You'll have $42,000 left over after all expenses? After bills, loans, food, gas, 401K........$42,000 left. And your worried that your pinball hobby might be ending??? Sounds like it's just getting started to me.

    I didn't start until after getting a house. I also have a wife, two kids (one entering college soon and the other three years behind), a boat, a dog.....etc.......(I'm also 47).

    #38 6 years ago
    Quoted from eggbert52:

    Also, I have roughly $3.5K per month in leftover money after expenses.

    Thats more than I make in a month, I think you wil. Be ok

    #39 6 years ago

    The question being asked should be , just what room in the new house is best situated for the game room...

    #40 6 years ago

    What are these "kids" you guys speak of ....?

    .

    #41 6 years ago
    Quoted from NPO:

    What are these "kids" you guys speak of ....?
    .

    Don't ask....just keep doing whatever you like when you like....I kind of miss those days (Joking........sort of). Of course in "those days" I never had any money.

    #42 6 years ago
    Quoted from golfingdad1:

    The interest paid on the house every year is 100% tax deductible vs just paying rent at zero %

    True, but as a renter myself due to past financial downfalls (ex, business failure, etc.), I write-off my rent, utilities and home office on my state taxes. Yes it's better to own a home in the long-run, but for those of us who have to rent for the time being, you can get a bit of a tax break if you know how to work it.

    Back on topic, if I had $3.5k a month to blow, my house would be packed with pins & whores!

    #43 6 years ago
    Quoted from Astropin:

    Of course in "those days" I never had any money.

    Because you were playing with pins & whores!

    #44 6 years ago

    It depends on what you're looking for in life.

    If you're still on the market for a spouse, owning a house NOT filled with man-toys is going to be a plus. You will appear successful but not foolish, unlike her previous 2 husbands.

    If you don't give a damn about a spouse, then hell, use that superpower to Buy Whatever You Want as long as you can afford it.

    Just don't get a roommate like some on here are suggesting.

    #45 6 years ago

    Seriously,
    When you're shopping for your first house you didn't plan for a game room?

    #46 6 years ago

    hmm. I am in the process of trying to buy a house so I can continue pinball. Renting is just wasting money.

    #47 6 years ago

    Look up the amortization for a 15 year mortgage and pay off your house at least that quickly if not sooner. That is a better investment than a 401K IMHO.

    That will build real equity in your house in case you want to trade it in (sell it) for another at some point in your life.

    30 year mortgages are making more money for the banks and mortgage investors. You might as well keep some of that interest money since you don't have any cash flow problems now.

    #48 6 years ago

    Yeah, you're done for. Only a few thousand dollars of discretionary income per month, no one you're responsible for, no one to complain about your hobbies, plenty of room to expand. What else can go wrong?

    #49 6 years ago

    Sounds like you got it all figured out , don't ask us we don't know shit .But still since you asked I think you should go ahead and by some more pins .

    #50 6 years ago

    Pinball is the reason to buy a new house. for me anyway. You run out of room, have to buy a bigger house to hold more games.

    And for those that say it costs 30k to live, with no wife, no kids and house paid off? I call bullshit. I can survive making 9-12k a year, with house payments, and a wife and kid, sure the hell doesn't cost 30k when your only expenses, are property tax, food, utilities and gas. Unless you bought a bunch of shit you didn't need and making payments on it.

    There are 230 posts in this topic. You are on page 1 of 5.

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