Quote Originally Posted by Halfwit View Post
a house i pay 40k for will not be worth thatin a few years,
Unless you trash the place, it will be worth a lot more in 5-7 years than it is now. Prices are very low now because of inventory. In 5 years demand will have caught up with, and likely surpassed, inventory, therefore, prices will be higher.


Quote Originally Posted by Halfwit View Post
and to obtain a nicer house (cash) would take more saving and a loss on current home.

Yes on the savings, no on the loss.



You have 40K in cash, you will be able to find a decent house for that money and you WILL turn a profit on it if you maintain it and improve it over the next 5 years. Unless the economy completely crashes that 40K house will be worth 60k or more in 5 years. If the economy does crash, that paid off house will be invaluable. You are in a win/win situation. The worst possible outcome is that you live in a paid off house longer than you really want to.