So here's the deal. I'm 26 years old. I have cash, gold and silver. More of the latter. My wife and I are starting to think about having children. We live in Hawaii where real estate is still very expensive. We are considering buying a condo as a long term investment. Should we buy it?

Here's where things get tricky and why I'm posting this question on this site. I somewhat feel guilty because I feel like I'm supporting/funding our banking system by having a loan. I also firmly believe that sooner than later the US dollar will collapse as it is an unsustainable system. When it does collapse, will it even matter whether or not you own something.

I look forward to the opinions and thoughts of the free-thinking minds of this site.

Use a Credit Union to get your loan instead of a bank. Credit Unions are owned by the members. Check around to find out the best ones in your area.

New Sheckles from Israel.
They have recently discovered one of the biggest oil and gas deposits in the world and are very independent.
They wont get mixed up in any NWO agenda.
That and as a Christian the bible states they will flourish. in the end times.

I would also think possibly Hawaii is insulated from what serious issues that may happen on the mainland...though volcanoes and earthquakes may become an issue. Whats the story relating to Japanese fallout from the tsunami like over there.

Tricky problem for you.

I have quite a lot of experience in the mortgage/loan/banker area to tell you the truth. Currently I am on the cusp of filing suit against my own mortgage company for several different reasons but I have learned a lot in the process.

First off: The subprime market is still upon us. With interest rates too low and "swap and bundle" still making it's way through the system, the loan approach is almost as act of suicide!

Never deal with a bank that does not service its own loans. Mortgage servicing companies will bend you over and take you for all they can, unless you enjoy a battle from time to time just to save your home.

You are better off to rent and invest in something that would accrue better average interest (productive farmland, more silver, stay away from gold) than the value of a home......in a volatile market.

Of course, you have to make that decision yourself.

feel guilty because I feel like I'm supporting/funding our banking system by having a loan.

We can all talk a good game when we criticize the government, but most of us have to live within the same system as you. There is almost no way around it. So don't feel guilty.

The market hasn't bottomed yet - why buy?

I'd buy more gold & maybe a boat to get the hell out of Dodge...

imo - think the goal of the Feds/Globalist's is for property ownership to go away so eventually they will be biggest landlord in the country/globe if they aren't already - they want to own all these foreclosed homes. It's part of the plan!

Tell your wife to cool her jets. You want to be liquid & mobile in these times & not tied to a mortgage

Mort gage - a French Legal term meaning - Death Contract

Peace

A lot of good comments here. On credit unions, I completely agree. Credit unions are the way to go.

On whether owning property will matter or not when the SHTF, I kinda think it would be a benefit. To have keys to a place could be a BIG benefit versus a landlord having say over whether or not you stay in your rental.

On Hawaii...Hawaii IS the most unique state. A lot of perks, a lot of disadvantages as well. Boats and planes cut off from this very isolated chain of islands would be wild. Maui (where I live) has enough food for seven days. I have enough food and water for my wife and I for about 30, plus guns and ammo. But I digress...on "owning" property, when the dollar collapses, paying my mortgage will be the last thing on my mind. But when will that happen? Who really knows? Federal Reserve has been around now over 100 years. We've been off the gold standard for over 30. It will happen, and it seems things are ramping up, but when? Nobody but they know.

On the "market hasn't bottomed yet"...Hawaii is somewhat unique in that is an international vacation destination. Right now there are a TON of Canadians here. A lot of visitors from Australia. A fair amount from Japan. These visitors are also buying vacation homes here. People love Maui. People love Hawaii. They will continue to come here. Houses and condos are selling. Work is relatively easy to find. I honestly do not look for the market to go much lower than what it is now. Lower costing condos (what I'm looking at) are a third of what they were in 2007/2008.

I look forward to hearing more of what you have to say. Thanks for the responses. This is a question I believe many others ask.

I was going to write up a whole long diatribe about what to do and not to do... but I'm just going to break it down simply...

RENT... do not buy right now. I live in a crap town in NH, pop. approx. 2000 ppl, my taxes are close to 4000+ p/yr for 1/4 acre piece of crap plot of land, total rape in the rear end kind of deal.

My payments per month, OWNING my house outright with no mtg, is about $600 per month, between homeowners, sewerage/water + property taxes. The average rent around here for a 3 bdrm apartment is around $750 per month. That's the price for no worries, the only difference is someone else owns the property, but you as the renter have all the power legally.

There is no such thing as "home ownership", it's a joke on us Americans. We are "occupants" of the property. Read the legal language of a real deed, we are "tenants" not "owners". If I can't pay the property taxes, the state can legally take the home I own outright. Talk about freedom!

Originally posted by Destinyone
Use a Credit Union to get your loan instead of a bank. Credit Unions are owned by the members. Check around to find out the best ones in your area.

Before I answer the OP I'll point this out: Credit Unions are not by default better than banks. Whether you use a Broker, a Bank or a Credit Union the loans are ALL .. I repeat ALL FHA loans are secured by the Federal Government through Freddie Mac. All of them.

Credit Unions also sell their mortgages just like banks and brokers do .. because Freddie owns the liability the mortgage is a commodity to be traded .. a credit union gains nothing by sitting on a 97% LTV FHA loan .. they WILL sell it.

To the OP:

When you buy a house you cannot sell the house for 3 years unless you're willing to pay a 30+% Federal Tax on personal income gains by selling the property. If you reside as a main residence for 3 years there is no tax penalty.. that being said, when looking at a house value you have to place the time you'd expect to sell to a minimum of 3 years .. likely the housing market will begin ticking up by then, but who knows?

Real Estate investments are long term holdings (like Gold) and if you're planning on having a family, my advice would be to find a nice home in a nice area, buy it and live in it for as long as you can. Also if you have the money for the love of God get a 15year note .. NOT a 30 year note. You usually pay a few hundred more a month but save hundreds of thousands in interest charges.

Consider this: 90% of American wealth is held in the in their homes equity. If you only rent you don't generate equity so unless you have personal savings you're worth nothing.

And don't worry about the Dollar "collapse" .. that's an impossibility. Even with a currency transition valuations are only altered not erased .. and if you know anything about the rules of monetization you'll know that a currency "collapse" within our system is impossible outside of a "controlled demolition" if you will. And in any case it won't be in our life time.

PS: Don't listen to the "I'm a tenant because I pay taxes" bs .. rent = no equity. Own = equity. Vast majority of your wealth years down the road will be equity. Thus this is why people who rent are worth far less than people who own. It all comes down to your personal market which you need to research .. is the market near a bottom mark or is there more to fall? The lower you get in the more you'll be worth a few years from now. USA average since the 1950's has been home prices double about ever 12 years (or a 100% gain in equity), 2008 being the first time in a long long time there was a continuous decline .. believe me I know I have about -30k in equity (under water) but that won't last forever.

Save your money, keep buying silver and gold.
realestate can be a good investment but like you said where you are currently living its very expensive, the smart thing to do is to invest where the land is cheaper and the payments lower, preferably property that has a well and a pond and some out buildings and a small house you can escape to out in the country, so if something were to happen you could get away from the city with your family and find security at your land.

if its just for an investment to cash in on you're still in a better position if you buy a couple hundred acres with trees, especially black walnut and oak trees, that you can harvest, there's many things you can do on land that will make you good money now and down the road, so you might want to look into it, but for now i would just keep saving until you've found the right real estate investment, condos are over priced and in these time harder to get rid of, same goes for townhouses and apartment buildings

As long as USA debts keep increasing and economic lies don't stop, buying anything that's settled inside USA is not a good idea.

It's time to relocate or emigrate. Save yourself and loved ones while you can.

There is a lot of good advice on here.

True, nothing is truly "owned" as you have to continue to pay taxes forever. Once upon a time in America you could hold an allodial title in some states, meaning you did NOT have to pay property taxes forever. I have heard that North Dakota has introduced legislation to eliminate property taxes.

Fifteen year is better than a 30 but, if you have the self discipline, you can do the same thing by paying additional principal each month. The nice thing about going that route is, if your circumstances change, you won't have to refinance to lower your payment. There are any number of amortization calculators that will show you the amount that would be paid on a 15 year, so you know how much extra to pay on your 30 year mortgage. If you just add about 10% to your payment, it's pretty close.

Credit Unions, while "owned" by its' members are still for profit. Very few of them actually write mortgages and, as was said earlier even those that are, almost all are still actually FHA/Fannie/Freddie loans. I worked for a CU in the 80's when the economy tanked. Back then, interest rates soared so the decision was made to stop writing loans entirely because the CU could generate a better return by just investing.

One more thing I'll add... do your homework. I found out by accident one day that a lot of condominiums are built on property that isn't actually owned, it is held under a 99 year lease so, you may be buying nothing more than sticks and stones.

I agree with some other posters, rent the # out of a nice place. I know owning something might give you a warm fuzzy feeling, but all that goes away when you pay property taxes and the roof starts leaking. Rent rent rent it's really a noo brainer. Renting is cheaper, less risky, and you can always just up and move.