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Buying a first home

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shardian:

--- Quote from: AtomSmasher on March 21, 2007, 12:00:49 pm ---
--- Quote from: ChadTower on March 21, 2007, 11:43:22 am ---
Add property taxes and property upkeep costs.  Most people dramatically underestimate the cost of upkeep on a house/property.  A cost they did not have renting.  When you add property taxes and upkeep costs then the tax break usually washes out about even.



--- End quote ---
property taxes are aronnd $2000 and the house is under warranty so upkeep costs are negligible.  Still, since I saved around $6000 on taxes, it would have to be $4000 in upkeep costs a year, which is quite a bit more then it actually will be anytime soon, especially with a brand new house.

--- End quote ---

A $6000 deduction is not the same as saving $6000 in taxes.

jbox:

--- Quote from: AtomSmasher on March 21, 2007, 11:36:32 am ---and my mortgage payment is only $100/mo. more then I was paying for rent

--- End quote ---
And *whoooossshhhhhh* there goes the topic again with someone who doesn't know how to read. I'm guessing that you didn't bother actually thinking about what I wrote in the first part and just skipped to feeling all warm inside 'cause unlike me you don't need any fancy math because you know instinctively that, how does it go, "Rent Money Is Dead Money!(tm)"


--- Quote from: jbox on March 21, 2007, 03:29:16 am ---buy ratio = rent cost / (loan interest + non-trivial property costs)

--- End quote ---
WELL LOOK AT THAT! It doesn't say "mortgage repayment", it says "loan interest"! AMAZING! It's almost like, wait for it:

--- Quote ---(g) they don't understand the maths of principals vs interest, but still think they're smart and everyone else is dumb

--- End quote ---
:cheers:

Now, is it my turn to say something super clever like, oh say, "If you're renting a penthouse maybe you should try buying a shack to save money and Build Equity(tm)!"  :laugh2:

shardian:

--- Quote from: jbox on March 21, 2007, 12:05:35 pm ---
--- Quote from: AtomSmasher on March 21, 2007, 11:36:32 am ---and my mortgage payment is only $100/mo. more then I was paying for rent

--- End quote ---
And *whoooossshhhhhh* there goes the topic again with someone who doesn't know how to read. I'm guessing that you didn't bother actually thinking about what I wrote in the first part and just skipped to feeling all warm inside 'cause unlike me you don't need any fancy math because you know instinctively that, how does it go, "Rent Money Is Dead Money!(tm)"


--- Quote from: jbox on March 21, 2007, 03:29:16 am ---buy ratio = rent cost / (loan interest + non-trivial property costs)

--- End quote ---
WELL LOOK AT THAT! It doesn't say "mortgage repayment", it says "loan interest"! AMAZING! It's almost like, wait for it:

--- Quote ---(g) they don't understand the maths of principals vs interest, but still think they're smart and everyone else is dumb

--- End quote ---
:cheers:

Now, is it my turn to say something super clever like, oh say, "If you're renting a penthouse maybe you should try buying a shack to save money and Build Equity(tm)!"  :laugh2:

--- End quote ---

Believe it or not, you can make a point without being a complete ---sufferer of cranial-rectal-inversion---.

AtomSmasher:

--- Quote from: shardian on March 21, 2007, 12:05:17 pm ---A $6000 deduction is not the same as saving $6000 in taxes.

--- End quote ---
I didn't say $6000 deduction, I said $6000 less I will be paying on taxes.  The deduction is quite a bit more then $6000.


--- Quote from: jbox on March 21, 2007, 12:05:35 pm ---
--- Quote from: jbox on March 21, 2007, 03:29:16 am ---buy ratio = rent cost / (loan interest + non-trivial property costs)

--- End quote ---
WELL LOOK AT THAT! It doesn't say "mortgage repayment", it says "loan interest"! AMAZING! It's almost like, wait for it:

--- Quote ---(g) they don't understand the maths of principals vs interest, but still think they're smart and everyone else is dumb

--- End quote ---
:cheers:

Now, is it my turn to say something super clever like, oh say, "If you're renting a penthouse maybe you should try buying a shack to save money and Build Equity(tm)!"  :laugh2:

--- End quote ---
Apparently I don't understand your variables because it seems to me that since your initial mortgage payments are 99% interest, they are the loan interest variable in your equation.  The non-trivial property costs would then be the property taxes, and then you need to subtract the amount you save from taxes, which you didn't include in your genious formula.  So that brings me right to what I was saying before.  Maybe you're not very good at word problems and i should of put it into formula form like you had it.

On top of that, I already have $20000 in equity from buying below market value, and since the market is currently at the bottom of its cycle in my area, it will soon start increasing in value.  Definately a stupid investment on my part.

shardian:
I don't see how you can save $6000 in actual taxes just from the house. That is just crazy.

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