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Topic ClosedIs Buying A Home Wise?

 
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BonaFideDiva View Drop Down
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Direct Link To This Post Posted: Oct 29 2007 at 10:10am
Originally posted by naijasbeauty naijasbeauty wrote:

Originally posted by Kael Kael wrote:

Originally posted by Sheryse Sheryse wrote:

Originally posted by Conceited Conceited wrote:

[
 
Yea, but what about property taxes?? And the housing market is so slow, that I dont think ppl can sell their house like they used to. Its a lil iffy now.
 
 
Exactly...When I hear what some people say they pay for property taxes, I am so glad I rent..


Those property taxes are built INTO your rent! You just don't know it, girl! And, like Naijasbeauty (off topic, but that's such a pretty name!) said, your landlord/the property owner gets to take the deduction, not you!


Thanks KaelEmbarrassed
 
ok...so the landlord gets a itty bitty tax deduction. if ur 'renter property taxes' are already included, then owning puts you at an evern GREATER loss, cause property taxes arent even included in your mortgage in some cases.
 
I promise, if you were to invest the diff between your rent and mortgage+interest+hoa dues+property taxes over thirty years you could buy a house cash...
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Direct Link To This Post Posted: Oct 29 2007 at 10:38am
Originally posted by BkGurl37 BkGurl37 wrote:

I like this thread BFD...A lot of good information on here
 
I concur Geek
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Direct Link To This Post Posted: Oct 29 2007 at 11:09am
Originally posted by BonaFideDiva BonaFideDiva wrote:


 I promise, if you were to invest the diff between your rent and mortgage+interest+hoa dues+property taxes over thirty years you could buy a house cash...
 
It seems like the best way to maximize the investment on your home is to minimize that difference between your mortgage expenses and what you'd typically pay for rent.
 
When I had my second baby, we were looking at renting a 3 bedroom townhouse in a decent neighborhood for 1100-1200 per month. That's when I decided to look for a house. We were able to get our mortgage for 1000 (included taxes) a month. The other expenses were just 600/yr insurance and 300/yr HOA fees. We still came out cheaper. We had an almost new house that didn't require any maintenance except checking the AC a few times. When we sold our house 2 years later to move out of state, we walked away with a $50,000 check. I don't see how we could have come out better than that. Now that was in Florida, and before the market went south though.
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Direct Link To This Post Posted: Oct 29 2007 at 1:18pm
Originally posted by BonaFideDiva BonaFideDiva wrote:

Originally posted by naijasbeauty naijasbeauty wrote:

Originally posted by Kael Kael wrote:

Originally posted by Sheryse Sheryse wrote:

Originally posted by Conceited Conceited wrote:

[
 
Yea, but what about property taxes?? And the housing market is so slow, that I dont think ppl can sell their house like they used to. Its a lil iffy now.
 
 
Exactly...When I hear what some people say they pay for property taxes, I am so glad I rent..


Those property taxes are built INTO your rent! You just don't know it, girl! And, like Naijasbeauty (off topic, but that's such a pretty name!) said, your landlord/the property owner gets to take the deduction, not you!


Thanks KaelEmbarrassed
 
ok...so the landlord gets a itty bitty tax deduction. if ur 'renter property taxes' are already included, then owning puts you at an evern GREATER loss, cause property taxes arent even included in your mortgage in some cases.
I promise, if you were to invest the diff between your rent and mortgage+interest+hoa dues+property taxes over thirty years you could buy a house cash...


A person can invest the different between their rent and mortgage+interest+hoa dues+property taxes over thirty years and come out at a loss, too. Coulda, shoulda, woulda. Among the many other reasons for valuing ownership that have already been mentioned in this thread, I'd rather diversify by adding a few safe investments, such as real estate. There's no reason to treat home ownership and stock investments as mutually exclusive.




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Direct Link To This Post Posted: Oct 29 2007 at 8:28pm

Yes - buying a home is wise in most cases. a savey investor could probably realize a greater return on investment.  Me - I would be spending the cash not used to pay the mortgage. Embarrassed

My homes values doubled in 7 years.  Yea...prices were inflated a bit so I don't expect this rate to continue - but I do expect the value to continue to increase at a rate higher than I would achive if I invested the same dollars in stocks/mutual funds.
 
Your taxes are reduced by the property taxes you pay - and - by the interest you pay on the loan (assuming you itemize).
 
In addition to income tax reduction - as BFD stated - you can use the property to secure loans.  This little feature enabled several people I know from being homeless when they were out of work for extended periods.
 
If I keep the home until it is paid for (30 year mortgage for me) I expect the property to be worth the total amount I paid for the mortgage. 
 
BFD - give up some of those tax tips girl! My current reductions are ok - but I am always looking for moreWink
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Direct Link To This Post Posted: Oct 29 2007 at 8:46pm

My grandma bought her house for 15K in 1956, and her house is appraised at 392K....Good investment!

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Direct Link To This Post Posted: Oct 29 2007 at 10:45pm
Great thread.  I'll keep lurking.
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Direct Link To This Post Posted: Oct 29 2007 at 11:01pm
Originally posted by mstoya25 mstoya25 wrote:

My grandma bought her house for 15K in 1956, and her house is appraised at 392K....Good investment!

 
 
Wow..
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Direct Link To This Post Posted: Oct 29 2007 at 11:38pm

BFD, you're looking at the home as only doubling over the length of the mortgage. It will more than likely increase much more than thatright along with the rate of the dollar itself.  Also, you have to consider that the value of a dollar is ever changing throughout time so what you get it for now is essentially locking in a lower dollar value to spend out.  But as your home increases in value you get the benefit of the increasing value of a dollar, should you choose to sell.  Check out this example of the change in the value of 200,000 from 1977 through 2006. 

 

In 2006, $200,000.00 from 1977 is worth:

$665,236.76 using the Consumer Price Index
$545,326.86 using the GDP deflator
$0.00 using the value of consumer bundle
$620,488.71 using the unskilled wage
$954,672.38 using the nominal GDP per capita
$1,299,394.36 using the relative share of GDP
 
 
So think about the steady increase in the value of that money, hopefully the rate of pay will increase accordingly just as it has been, historically. 
 
Also, if you were to buy a home, would you do the starter home, then sell it or would you buy a home for the long haul as something to leave as an inheritance for your family?  Think about the benefits a home could have to your heirs.  Especially if you pay it off before you leave, then you are essentially giving them that house as a memory or a large ticket item for sale.  And I'm sure a lady like you also would have life insurance so that your heirs would be covered financially to maintain a home if they needed to.
 
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Direct Link To This Post Posted: Oct 30 2007 at 9:38am
dp


Edited by Raisinm7 - Oct 30 2007 at 8:42pm
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