Given today's real estate market

[phikappapsi]

Interesting hypothetical scenario... Given interest rates being at basically never before seen lows, a lot of people are saying this might be the best opportunity ever to buy a house.


That said, would you sell off all, or most of your collection, to come up with the money to take advantage of the soft housing market?


I know it's not apples to apples, ones an investment and cards are and should be a hobby, that said... I found it an interesting subject that came up last night, with a friend in the modern card hobby.

[Big Ben]

Well... All I can say is that in 2008-early 2009, I sold most of my collection and invested most of that money in stocks and put some money in vintage cards. I did rather well and realized a goal to simplify my collection.

[Jlighter]

I would not even consider a house an investment. Homes need repairs, homes need renovations. Buyers are fickle, what may be considered a desirable area one day could be considered undesirable the next. Unless your house can recieve income, I.E. two houses on one property, I would not recommended it. Better to put it in a basket of Emerging Market debt.

[t206blogcom]

I won't step into the 'whether a house is an investment' argument, but I don't think it's a bad idea to sell some or all to help fund a home purchase. I'm considering doing the same thing within the next year.

While I love collecting as much as the next guy, in the end, it's just cardboard. A home is an investment in your family and your life. I'd take a home over a stack of cardboard any day, unless the stack came from the Black Swamp...

[barrysloate]

There are too many variables to answer that question. One would need to take a full inventory to make that decision: do you need a house, where do you live, what other assets do you have, how old are you, etc. A house is a big commitment so I would take as many factors into account as possible.

It might be a great idea for some, not so for others.

[Leon]

Two different things. Cards are liquid and houses not so much. I think it really comes down to what your family goals/needs are. You can't live in your cards.. If it means a better life for you and your family by having the house then I say do it. I would sort of make the decision based on the house need and just think of the cards as cash you have now.

[bbcard1]

I have thought about it. We are about ten years our from semi-retirement. The thought of going ahead and picking up a nice patio home near the ocean and then renting it for a few years had certainly occurred. One way to do that would be to liquidate a sizable portion of my collection. I would consider that, however, as someone who has recently done that for a friend, it's a whole lot of work. I have a job that keeps me busy a good 60 hours a week. Just doesn't seem....in the cards. I don't have five items I could sell to accomplish the goal.

While housing does represent a good buy right now, it's going to be a long time before we see previous prices.

[brob28]

Joe - to me the first question I would ask you is: not considering baseball cards, do you want to own a home? If so, is the only way to buy one now or in the near future to sell some of your collection?

Bottom line, do you value your cards more than homeownership? If not, I'd say to sell some to buy a house. Rates today are in the 3.50% range for a 30 year fixed rate loan. The after tax cost of borrowing that money after tax considerations (given todays tax laws) is about 2.52%. I'd be willing to bet a lot of cabbage that sometime in the next 30 years the rate of inflation will be greater than 2.52%. So at some point your effective cost of borrowing on a home will be less than the inflation rate. What I'm getting at is the cost of funds to buy and the cost of the home are both at or near as low a level as one could hope for, so from that perspective the time is right to buy.

As I type this I realize there are counter-points to each point made in each post, but I come back to: Do you value your cards more than homeownership? If not, I'd say to sell some to buy a house