Collection or house

This is a constant dilemma of mine that crosses my mind on a daily basis. I am currently a student in NYC, but am finishing up my senior year. I have run a small business for a few years that has enabled me to be quite lucky and purchase a relatively extensive collection. I have scholarships, an excellent credit score, and am a resident assistant so I have no debt which, I thank god for every day.

That being said my degree is not in STEM (great decision on my part...) so I am nervous about the future. My business is good, but not always consistent so I could not support myself on it.

If anyone would like to chime in on advice to what to do in the future I would greatly appreciate it.

 

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What is STEM?

 

Science, Technology, Engineering or Math

 

I hate to admit it but you're right. I'm going to be in that squeeze.

That crash will be even worse in smaller cities, or less desirable areas, where there will be even fewer buyers in the future.

The American dream may become the American nightmare.

 

I paid for and supported myself through undergrad and grad studies by buying and selling coins. It's really quite lucrative if you know your stuff. Now I have a full time career with a good salary, and I still think I could be making more if I did coins full time instead.
And don't worry too much about what your degree is. I did B.A and M.A. degrees in forensic psychology but ended up with a career in healthcare informatics supervising clinical systems and IT help desk support for a hospital. Our course of study does not define us

 

I would like to talk to you can you PM me

 

Buying a house is not the entire housing story. There are property taxes, insurance, heating/ac, maintenance and repairs to think about. I would not buy a house if my income would not support the house, if you know what I mean. If you think you own your house, try not paying property taxes and find out.

 

Thanks for that information, I am a psychology major with a double minor in business administration and marketing so not exactly the same, but similar. With the unemployment rate amongst millennials, I am just slightly concerned..

Hi Gilbert, I ran some numbers and it would be doable under 100k and very comfortable if I rented a room out. Yet, It is not set in stone and a slight discrepancy could set me a downward spiral as I would be depleting a decent cash reserve.

Will do that now, Thanks.

 

"Hi Gilbert, I ran some numbers and it would be doable under 100k and very comfortable if I rented a room out. Yet, It is not set in stone and a slight discrepancy could set me a downward spiral as I would be depleting a decent cash reserve."

One final thought, if you live where housing is in a bubble (up for debate) hold off for a little while and watch the market.

 

Yes, I have been waiting to see how the economy will do. I would most likely be relocating to Florida (bubble capital) as the east coast is to expensive. And cold....

 

The majority is flood line zone , just remember ..lol

 

If I were in the market to buy a house, I would seek out and find a owner financed home. Much, much better deal for owners and buyers. Most are inherited properties or older owners who if they got the cash outright, they would lose alot to capital gains taxes and if they invested the rest, their returns would be less than interest earned from financing. The buyer can usually get a better deal because they can buy a home that a contractor/developer hasn't bought and added a great deal to the original price.
Purchased my first 3 homes owner financed. Of coarse they all needed a good deal of work which was right down my alley.

 

One thing that all buyers should check out thoroughly is the cost of flood insurance, which has skyrocketed. A mortgage company is likely to require it. And if you are buying a house with cash do not make the mistake of thinking homeowners insurance will cover you in case of flood. Not one red cent they will pay.

There have been many areas hit in recent years that were thought to be semi-flood proof: the Atlanta area, Columbia, South Carolina and many areas of Texas to name a few.

 

Yes, that is something I would have to factor in. I was most likely thinking a condo about a mile from the ocean (location is key for me and renters so I would need to get some rates.

 

Along with Santinidollar's good advice about flood insurance, if one is a homeowner OR renter, be sure one knows exactly what is covered under sewer back-up, water leaks, etc. A lot of people have assumed coverage for those things and found later they weren't covered (including my daughter this past year, to the tune of $20K, unreimbursed, in damages from a leaky washing machine connection...black mold, testing, cabinets and flooring hauled to the dump...really adds up).

BTW, after getting water in our Minnesota basement 3 times my wife and I built our latest home on a slab, no crawl space. I don't EVER want another basement. As far as what to do if a tornado threatens: when this was the case a couple of years ago, my wife sat in the furnace room with a radio and flashlight; I went to bed and slept like a log. IF I were to build again I'd build a concrete-reinforced storm/safe room (which could be utilized for coin storage, of course).

Steve

 

Hi Steve, concrete block is the way to go. Especially in any area prone to any form of natural disaster. When my parents moved to Florida my father insisted on nothing but concrete block. Thank you for the advice in regards to the flood insurance for renters, I totally forgot the horror stories of what some renters can do when "aggitated" with their landlords. Love the "safe/coin room" idea as well!

 

Your coin collection has value, but it is time consuming and difficult to convert it. Dealers will offer insulting prices. Scammers on EBay will fleece you. Few pay retail value, and fees eat up your profits too. Don't forget taxes!
Investing in your home is good. Most of us have to throw money into housing every month, one way or another. Many of the fees you pay for housing are tax deductible.
In a crisis, financial or other, that house is a huge financial asset. You cant eat your coins, or live in them, etc. There is no guarantee you will get anywhere near their value, especially with rare, high grade coins. You will be far better off with a common date Morgan or Mercury dime than an XF or AU large cent from the 1700's.
A home is a huge asset in bad times, that others will be liquidating their assets for a loss to buy.
Its also a great thing to pass along to your kids.

 

Any thoughts on how to make money buying and selling coins other than buy low/sell high? Obviously, learn to grade, but what else? Specialize in varieties?

 

People do it different ways. I specialize in varieties and sharpen my eye for cherry-picking on eBay and elsewhere. Learning to grade is probably important. I generally pay more attention to eye appeal rather than what the coin might grade. But then again I also prefer to deal with coins in the raw and avoid the whole slabbing thing.
I don't do local buying because I just end up telling people what the coins are worth and pricing myself out of the profitable range.