I wanna invest in da market

[Beachboy]

I need some investing info folks. I can't afford to buy a house at the moment. But my rent in Kapahulu is $1500.00 a month with no utilities included. I'd rather be paying off a house for me, and not somebody else house thru rent!! Besides, what good is a rent recipt other than to light a Barbque, or wipe your okole with it?

Anyway to meet my goal of buying a house I'll need more money,right? So I was thinking of getting into theMARKET I don't want to be a day trader. I hear to many bad stories about them getting wiped out! But I have know idea about investing, as to where to start? Do I first need to find a local investing firm, or what?

If anybody could point me in the right direction as how to get started, I'd be very greatful.

mahalo

[timkona]

Re: I wanna invest in da market

The stock market is not an investment, first of all. It's a lot more like Vegas. So be careful.

It's possible to buy a house with very little money. The trick is to have stellar credit. Do you have that already?

Also, there are lot's of things that people spend money on that are just silly. Cigarettes, Fast Food, Gasoline instead of the Bus, Steaks instead of Saimin.

Saving Money is the best path toward owning a home. Saving Money is also the hardest trick to learn.

[CranBeree]

Re: I wanna invest in da market

one way that we save money is that we go by the mantra ...if we dont have the cash for it, we can't afford it!! it also helps that we dont live excessively. (athough buying an aftrican grey was a bit escessive :P )
make dinner at home, brown bag lunch, my kids favorite thing to do was have a picnic on weekends..to this day my daughters get excited when they see me take the picnic blanket down.

we were able to buy our townhouse with only about 3,000 in our pocket, and most of that went to the closing costs. not only that but we still were able to splurge on some items that we wanted and able to eat dinner out at least every month. added on to that cost os the upkeep and vet bills for our 2 african greys and our dog. on a single income!

what i'm trying to say that if you really want what you desire, you can make it happen. its like having a kid..most of us are ill prepared financially to raise a kid, but you do what it takes to raise that kid! so think of your house or getting one as a very expensive kid

[SusieMisajon]

Re: I wanna invest in da market

What about finding somebody else, and each buying half a house?

[Beachboy]

Re: I wanna invest in da market

The stock market is not an investment, first of all. It's a lot more like Vegas. So be careful.

It's possible to buy a house with very little money. The trick is to have stellar credit. Do you have that already?

Also, there are lot's of things that people spend money on that are just silly. Cigarettes, Fast Food, Gasoline instead of the Bus, Steaks instead of Saimin.

Saving Money is the best path toward owning a home. Saving Money is also the hardest trick to learn.

is it really a gamble to you? I'd rather play the market than gamble. I've been told if you do your homework...there is money to be made.

Sure I'd love to buy a house, and yes my credit is fairly good. I think if I remember correctly my "FICA" score was something like 740, or 760. Do you think that will qualify me?

[Linkmeister]

Re: I wanna invest in da market

Educate yourself. The SEC publishes free online basic info here.


Then pick up some paperback copies of guides like those by Jane Bryant Quinn, Andy Tobias or Dun & Bradstreet, or go to the library and check them out.

You need to learn the process before you jump in. When I first started I bought books and read them; one of the best is the one Ben Graham wrote called The Intelligent Investor. It's dry and textbookish, but the author is the godfather of value investing.

I probably have 30-40 books about investment and money management, and they've all influenced my philosophy about how to do it.

[WindwardOahuRN]

Re: I wanna invest in da market

is it really a gamble to you? I'd rather play the market than gamble. I've been told if you do your homework...there is money to be made.

Sure I'd love to buy a house, and yes my credit is fairly good. I think if I remember correctly my "FICA" score was something like 740, or 760. Do you think that will qualify me?

It might be a good idea to see what you actually qualify for, in terms of mortgage loans. You can do this by visiting a mortgage broker. You can also do it online with companies such as E-Loan:

http://www.eloan.com/

There are lots of helpful tools and calculators on this site, too. You can also get pre-qualified, I believe, and print out a pre-q statement.

Having a pre-qualification letter with you is a good thing when you start looking for property. RE people like that---shows you're a serious and qualified buyer, not just someone who'se curious about an Open House.There is no obligation to sign anything---just be aware that you'll be barraged with phone calls and letters after you're approved.

[timkona]

Re: I wanna invest in da market

FICA score of 760 is real good. You should buy whatever your income qualifies for.

To be a small time investor in real estate, the best way is to pay down that mortgage as fast as possible. Equity is the leverage. Compound interest is the enemy.

Throw every penny you have at the mortgage for the first 2-3 years and pay down that principal.

[Jonah K]

Re: I wanna invest in da market

I need some investing info folks. I can't afford to buy a house at the moment. But my rent in Kapahulu is $1500.00 a month with no utilities included. I'd rather be paying off a house for me, and not somebody else house thru rent!! Besides, what good is a rent recipt other than to light a Barbque, or wipe your okole with it?

Anyway to meet my goal of buying a house I'll need more money,right?

If you can afford to pay someone $1,500 per month in rent, you can afford to purchase a house; however, it probably won't be on O'ahu.

[tikiyaki]

Re: I wanna invest in da market

Beach Boy,

Your credit score is great. Rather than trying to own a house, get a condo. I recently saw a one bedroom in Kailua listed for $200k ! Yes, it was like 400 sq ft, but if you're single you can make due. Granted, condos in Kailua for $200K don't come up that often(I know, I check all the time) sometimes you find a deal. Small steps is the best way to buy a home.

[Miulang]

Re: I wanna invest in da market

If you can afford to pay someone $1,500 per month in rent, you can afford to purchase a house; however, it probably won't be on O'ahu.

It certainly wouldn't be on Maui, either! And if you're seriously thinking about investing (other than real estate), you have to look at it as a long term thing. The market is subject to ups and downs and even the experts can't always time their trades right. Over time, however, investing in the stock market has proven profitable. Mutual funds generally do better than single stocks because you're investing in a basket of stocks, which tends to even out the severe ups and downs a single stock might experience.

For buying real estate to live in, it would be optimum if you could save up about 20% of what you think you can afford for a house as a down payment. If you go in with less than 20% down, you're subject to mortgage insurance, which can add a substantial chunk of change to your monthly mortgage payments.

Miulang

[craigwatanabe]

Re: I wanna invest in da market

If you can afford to pay someone $1,500 per month in rent, you can afford to purchase a house; however, it probably won't be on O'ahu.

$1500 rent will get you a nice big home out here in Keaau.

But with rent payments like that and a great credit score you are actually somewhat ahead of the game. When I started my house hunt, I hired a mortgage broker (Western Pacific Mortgage) that worked with me to get my finances in order. It's nice to get financially pre-qualified, brokers are more open to you than someone that doesn't know if they could get a Sears Credit card!

I know you could buy a home with your credit score.

[Paul]

Re: I wanna invest in da market

Is it better to pay down the mortgage early or save the extra payments then invest it in an annuity with a higher rate of return than the interest on the mortgage? I read somewhere that this is a good strategy if the interest rate on the mortgage is low enough. I've been doing both.

[Jonah K]

Re: I wanna invest in da market

$1500 rent will get you a nice big home out here in Keaau.

Shhh! He probably doesn't want to deal with catchment water, coqui frogs, Albizia trees, cinder roads, relatively few beaches, rain, and all the other things that come with living in Puna.

[Beachboy]

Re: I wanna invest in da market

Shhh! He probably doesn't want to deal with catchment water, coqui frogs, Albizia trees, cinder roads, relatively few beaches, rain, and all the other things that come with living in Puna.

what you think I'm soft or something? Jonah, Puna is hardly the end of the earth pal. You make it sound like it's hard times there. Believe me, I've had to put up with places a lot worse than wet Puna!