PearlPilot

I just got reading the thread about borrowing money for training and ending up paying high interest. I was thinking about buying a house and wait for a year or so and sell it when the value goes up and use that money towards flight training. I am not sure if this has been discussed before. Although it certainly seems like a big gamble it may just work out....Any thoughts?

vagabond

I am sure there are many others who will disagree with me, but then that's the fun part of an anonymous forum. Don't ask me why, but I took the time to read through some of your past posts to get a better feel of your situation. As far as I can ascertain, you just graduated with a degree in Humanities, you owe $5500 in student loans, you have not quite started your PPL because you don't have the money and you don't want to borrow the $40,000 necessary, you are working in some office job right now, and you are not a US citizen.

The housing market is on a downward spiral right now and it has not hit bottom yet. So if you were to buy a house today, the value could well continue to decline, and as with all types of investments, it's harder to get up than it is to go down. Buying a house also requires a down payment and a mortgage. Assuming you have the down payment and the wherewithal to make the monthly mortgage, I don't believe you can make a profit after only a year of ownership. A lot also depends on location, not only the state and city in which you live, but also the location of the house itself.

I am not suggesting you should not do it, but I merely want you to think about it before jumping into what many people consider a perilous endeavour. Real estate is a big part of my portfolio and it has done very well for me. However, I was lucky in my timing and where I live. May you also be so lucky.

PearlPilot

I truly appriciate your valuable input vagabond. I am actually in my senior year right now and making plans toward financing my flight training after graduation. From a lot of threads I read here and other forums it sounds to me a very ill decision to borrow a large loan although many says it's worth while.

ryguy

Depending on where the house is, you are not going to get that kind of return in one year. The only place I could see it happening is in Vancouver due to the Olympics coming there soon. As for the huge gains in South Florida and California, those are gone for the moment. Most REI is a long term investment.

Now, having said that, there are ways to get some great deals and make a bit of coin. Head down to the library or B&N and get some good reading material. Stay away from "Guru's" as most only want your money. Stick to the nuts and bolts of real estate transactions and stay away from quick buck courses and such. Once you have laid the foundation, you can get into the money making side. Finally, check the laws in YOUR state, the books tend to be generic so it is vital that you know local and state law regarding real estate.

Good luck!