Post up your Mortgage payment.

[javaguru]

That' not true, is it? House value $400,000 Taxes $6000/year.

House Value goes up $12,000 this year. = 3%

Taxes goes up $180 this year. = 3%



Buying a house is not neccessarily an investment. It is also a place to live. (lol duh) I used to rent in a comfortable 2bd 2 bath apartment, but me and the wife would constantly argue about making too much noise. I'd always keep the TV volume down and she'd put it up. I'd stuff a towel in her mouth while having sex, and her bf would take it out. It sucked.

Not until we bought our house, did I really start living freely. I bought my fisrt Surround sound system, big screen toys in the yard for the kids. Pool etc... It's a lifestyle as well as an investment. If you plan on living somewhere 7-10 years +, then it's OK to buy a house. If you could afford it, it';s worth it IMO.

It does have mainetnance invilved. If you don't like mowing your own lawn, then maybe you should rent or buy a townhouse. I personally love home ownership.

I bought my house for $120k and it's valued at $400k now. Yes, like someone said earlier, it's leverage. Most people will never be able to leverage anything but a house, so why not do it.

Having said that, the housing market IS in a downturn. When will it end, who knows? I do know that it's a lifestyle choice. Apartments suck IMO. But that's just a personal preference like I described above.

Look at any 10 and 20 year history of RE prices. You will make money on RE. If you plan on buying for 3 years, then forget it. It's not 2003!

Some "experts" are predicting house values will go down 5% this year on average due to the housing bubble. From 1890-2004 when corrected for inflation home prices increased .4% per year(1940-2004 .7%). I tell people to purchase a house because you want one, not because it's a good investment.

 

[rnch]

i keep reading all the "experts" pontificating doom & gloom for the biggest tax deduction most Americans have (home mortgage interest)...ya'll have to remember what they are saying is their crystal ball "opinion" on the future.

i've bought and sold 4 houses and 2 vacant lots since 1989 and always made money on each transaction; good years and bad years.

perhaps new orleans is the "unique marketing target area" as all my economics professors in college taught me?

possibly in the highly inflated and over-priced areas of our great country will suffer some much needed "price adjustments".

and perhaps those fools who bought a house they could not afford at the time with zero down and an adjustable mortgage will have to make compromises in their lifestyle.

my daddums always told me "son, it's not as much how much you make as it is how you spend it".

 

[cindylou]

my mortage is 1300.00 I had a down payment on my house one of the few 20 somethings that did. good for me huh? lol

 

[Bikini Mod]

my daddums always told me "son, it's not as much how much you make as it is how you spend it".

Everytime I hear you quote your daddy I am thinkin - dayum, your daddy was one SMART MAN!

My mortgage is a lot, bout 4K a month. My house is big and beautiful but it is empty. Truth be told, we are thinking on selling. It's becoming very detrimental to our emotional well-being to be here. The house is far beyond what I had ever hoped to have in a wonderful neighborhood but the fact that it remains empty after all this time with goodness knows how much longer before we can fill it and the housing market in the Dallas/Ft Worth area is still VERY strong so we are thinking it would be better to sell perhaps.

 

[rnch]

Everytime I hear you quote your daddy I am thinkin - dayum, your daddy was one SMART MAN!

yes, i agree..the older i get the smarter he becomes. pity he's not here anymore so i could tell him this.

athought she is still an active, attractive (for her age), fun to be around, financially secure widow, my mother refuses to even consider dating another man, much less another marriage...sez 42 years with my father spoiled her for any other man.

 

[Bikini Mod]

yes, i agree..the older i get the smarter he becomes. pity he's not here anymore so i could tell him this.

athought she is still an active, attractive (for her age), fun to be around, financially secure widow, my mother refuses to even consider dating another man, much less another marriage...sez 42 years with my father spoiled her for any other man.

Awe... darlin' I am certain your father knows how you feel, even today.

And I understand how your mother feels... Maybe when she is ready again, she will find herself ready to socialize. None of us should spend our days without adult companionship. Course the way ya'll make it sound, I am thinkin that it would indeed be a tall order for her to find someone that would treat her the way that she had grown accustomed.

 

[rnch]

Awe... darlin' I am certain your father knows how you feel, even today.

And I understand how your mother feels... Maybe when she is ready again, she will find herself ready to socialize. None of us should spend our days without adult companionship. Course the way ya'll make it sound, I am thinkin that it would indeed be a tall order for her to find someone that would treat her the way that she had grown accustomed.

she has plenty of companionship! she mastered the sly, sublte, suthin' art of flirting with a man at least 50 years ago....old geezers surround her like bees around honey...amazing how geezers still have a sex drive! i had to have a private, serious "man to man" talk with one old fool who thought he was going to slide into a comfortable retirement.

 

[the_clockwork]

was about 1200, just bought a new house though, will probably be quite a bit more

 

[Bikini Mod]

she has plenty of companionship! she mastered the sly, sublte, suthin' art of flirting with a man at least 50 years ago....old geezers surround her like bees around honey...amazing how geezers still have a sex drive! i had to have a private, serious "man to man" talk with one old fool who thought he was going to slide into a comfortable retirement.

Heheheheheheee

Bless your mother's heart!!! Nothing like a woman who has mastered that subtle artform. Sadly, lost on today's youth... both male and female. What was that saying?... "Youth is wasted on the young?"

 

[jnevin]

typically your rent would be more than your mortgage payment for the same home. so your thinking is backwards here. if i pay $1500/mo for my mortgage, to rent the same house, it would be probably $2,000 or more

not to mention that owning a home is an investment. an apartment is not. when you leave, all you have to show for all those payments is a security deposit if you're lucky.

Interest compounds faster than a mtg balance will go down.

 

[gonelifting]

Interest compounds faster than a mtg balance will go down.

I do extra pauments on my mortgage. I just got a 30 year mortgage 4 years ago and have 11 years left on the mortgage with the extra payments. woohoo. lol

11 years is better than 26.

The last 1, 2 or so years is mostly principle anyway, so it's really less than 11 years of "pain". Not bad for a 30 year mortgage.

Choose wisely.


Don't give me that "invest the rest BS. People simply DON'T do that. Even people who rent. They don't "invest the difference" etc... and even if they did, they don't hold onto the investments through down times etc.. It simply doesn't work in the real world. Plus, fucking home ownership is great. BBQ's in the yard, by the pool etc.. awesome. Fuck apartments because it's "cheaper" on paper. Live your life damnit! I love living in a Single family DETATCHED house.

and fuck you too!

FUCK YOU!

I'm blasting my music so loud right now, my ears are ringing. Oh shit, my ear is bleeding. brb.

 

[manny78]

typically your rent would be more than your mortgage payment for the same home. so your thinking is backwards here. if i pay $1500/mo for my mortgage, to rent the same house, it would be probably $2,000 or more

not to mention that owning a home is an investment. an apartment is not. when you leave, all you have to show for all those payments is a security deposit if you're lucky.

True if your down payment is high.

For example, typical 800-900 sq. ft. condo is around $250 000-275 000 in my area. If you rent something similar, it will cost you 900-1000/month. Now if you throw $40 000 (down payment... but few will put that much anyway) and take a 25 years mortgage at 5.5% then you end up paying around $1300 + condo fees + whatever you can picture....

 

[jnevin]

I do extra pauments on my mortgage. I just got a 30 year mortgage 4 years ago and have 11 years left on the mortgage with the extra payments. woohoo. lol

11 years is better than 26.

The last 1, 2 or so years is mostly principle anyway, so it's really less than 11 years of "pain". Not bad for a 30 year mortgage.

Choose wisely.


Don't give me that "invest the rest BS. People simply DON'T do that. Even people who rent. They don't "invest the difference" etc... and even if they did, they don't hold onto the investments through down times etc.. It simply doesn't work in the real world. Plus, fucking home ownership is great. BBQ's in the yard, by the pool etc.. awesome. Fuck apartments because it's "cheaper" on paper. Live your life damnit! I love living in a Single family DETATCHED house.

and fuck you too!

FUCK YOU!

I'm blasting my music so loud right now, my ears are ringing. Oh shit, my ear is bleeding. brb.

Most don't, you're right.

I have a SXS duplex with a $2,200 pmt. I was able to put a big chunk down because the market went crazy here and I had over $150K in equity from my last place. The rent I get from my tennant is $1,700. I send an extra thousand per month.

 

[heavy_duty]

UH Like people can rent a HOUSE too, not just apartments or condo's.

Rent a house have a BBQ woo-hoo wipty-doo!

Fuck apartments because it's "cheaper" on paper. Live your life damnit! I love living in a Single family DETATCHED house.

and fuck you too!

FUCK YOU!

I'm blasting my music so loud right now, my ears are ringing. Oh shit, my ear is bleeding. brb.

 

[Kano]

Mortage And Taxes A Month 1200.. My House Is 2400 Sq Big Enought For My 2 Boys

 

[gonelifting]

UH Like people can rent a HOUSE too, not just apartments or condo's.

Rent a house have a BBQ woo-hoo wipty-doo!

Oh, I did not know that.

 

[jnevin]

Oh, I did not know that.

Like, duh bro.

 

[bran987]

That' not true, is it? House value $400,000 Taxes $6000/year.

House Value goes up $12,000 this year. = 3%

Taxes goes up $180 this year. = 3%

wrong, god, dad you're a millionaire!!

House Value $400,000, taxes $12,000/year (3%)

House Values goes up 3%

House Values = $412,000, up $12,000

Taxes = 3%, $12,360

Subtract from the new value and you'll see how it is a wash.

Taxes are on the FULL value of the land + improvements every year.

 

[bran987]

Don't give me that "invest the rest BS. People simply DON'T do that. Even people who rent. They don't "invest the difference" etc... and even if they did, they don't hold onto the investments through down times etc..

I do, and I haven't sold an investment in over 3 years! I invest it monthly on the dot according to what the most undervalued investment is I see available at that time come on!

 

[bran987]

Bran & other business types - were you not taught that it is the ultimate hedge against inflation?

You're saying a mortgage payment will remain constant over a 30 year term while rents will continue to increase, therefore it provides a lower cost of living....... true, in theory. but that assumes people stay in their homes for 30 years. Most refi every 7 years and never experience much of the amortization part of a mortgage, only the interest. Add to that the X% of the price of a home that goes into upkeep, yard, repairs, taxes etc. and you are fighting the wash I talked about earlier.

It boils down to what GL said it's mostly a lifestyle choice IMO, and barring the possibility that you are in a place that doesn't have STUPIDLY high property taxes like 3% in Dallas, it can turn out well in the long term like GL did.

GL BTW can I ask how many years it took for your $120K house to turn into a $400K appraised home?

 

[bran987]

a.) depends on the market
b.) tax write off is significant

most people in NYC don't own, even those who make millions a year. they may own a house somewhere else, but not in Manhattan.

you have to be a shitty investor or being buying in a poorly picked area to not cover your property taxes over the long term

I said in my post it depends on the market.
Tax write off, OK.

A typical home owner is in the what... 28% tax bracket?
interest on the mortgage payment on a home in Dallas is like... $1200 average.
28% of $1,200 = $336/month. So about $3,750/year.

Let me write you a bill for a blown A/C in Texas.

I will give you this much:

you have to be a shitty investor or being buying in a poorly picked area to not cover your property taxes over the long term

true.

more shitty investors out there than you'd think though. Most don't have 3% prop. taxes like Texas, and you also have to include all the incidental costs to owning a home in there too.

 

[Raptorex]

bran I k-messaged u (I think its closer to reality in growth markets)

 

[gonelifting]

GL BTW can I ask how many years it took for your $120K house to turn into a $400K appraised home?

Bought it in 2000, fixed it up in 10 months and moved in around 2001. It is now roughly 400k. It was maybe 500k 2 years ago. lol Who knows what someone would have paid at the height.

I'd say it turned to 400 in 3 years max. Almost immediately after I rehabbed it. Of course that's not the RE market itself, it's the rehabbing i did that contributed greatly to the price increase ALONG with the favorable market.


Just a tidbit. We closed on the house New Year's Eve 1999 at about 7PM or so. We very well could have been the last people to technically "buy" a house last century. lol

I win!


Ehhh, we're east coast, so I doubt it. But it's still a good story damnit!





Dude, you're killing me with the 3% 12k shit.


$400k house goes up 12k a year, right? The taxes only go up a few hundred a year.

2 years 24k

3 years 36k

5 years 60k (actually more due to compounding)

You'll only be paying 1500 (or whatever) more per year and have 60k more of house.

 

[gonelifting]

Two more things...

We pay 4.16%/year in property taxes. ouch!!!

and they do NOT reassess the houses every year here. Not even close. The taxes go UP every year, but the assessments are only done when you buy or build etc...

 

[alien amp pharm]

$0

After the apartment life, I bought a foreclosured fixer-upper and have never had a mortgage.

I'm very lucky in that aspect.

 

[dead_reggin_storage_fashi]

Some "experts" are predicting house values will go down 5% this year on average due to the housing bubble. From 1890-2004 when corrected for inflation home prices increased .4% per year(1940-2004 .7%). I tell people to purchase a house because you want one, not because it's a good investment.

home vaues are still dropping. I see it everyday


rates have been down.. yay

 

[jnevin]

home vaues are still dropping. I see it everyday


rates have been down.. yay

Builders here have been dropping prices by up to $80K. I'd be livid if I spent $600K on a place and had someone move in down the street into a place with more upgrades for less than mine because the builder wanted to dump his inventory.

 

[calveless wonder]

Builders here have been dropping prices by up to $80K. I'd be livid if I spent $600K on a place and had someone move in down the street into a place with more upgrades for less than mine because the builder wanted to dump his inventory.

you'd also be an idiot to buy at such an inflated price during a peak market

people reap what they sow

 

[jh1]

you'd also be an idiot to buy at such an inflated price during a peak market

people reap what they sow

A lot of people bought during the bubble:

1. Because it is difficult to see that you are in a bubble when you are inside the bubble.
2. Because families don't always have the luxury of waiting for the inflation to correct before buying.

 

[txbondsman]

$583.00 mortgage, AHHHHH gotta love livin in the country! taxs are $1400.00

 

[DannoMight]

$1200 per mo.

 

[calveless wonder]

A lot of people bought during the bubble:

1. Because it is difficult to see that you are in a bubble when you are inside the bubble.
2. Because families don't always have the luxury of waiting for the inflation to correct before buying.

no, not really. if you understand real estate it's pretty easy to recognize a bubble. hell, when you appreciate 30% in a year that should say something.

but people are greedy, and uneducated infortunately

2.) they can still rent, if they know it's not a good time to buy...you can rent any type of apt/house you would need.
that may apply to sum, but it's mostly ignorance and/or greed

 

[gonelifting]

no, not really. if you understand real estate it's pretty easy to recognize a bubble. hell, when you appreciate 30% in a year that should say something.

but people are greedy, and uneducated infortunately

2.) they can still rent, if they know it's not a good time to buy...you can rent any type of apt/house you would need.
that may apply to sum, but it's mostly ignorance and/or greed

It's not as easy as you make it to be. You are cherry picking one point in time and using it for your example. "Prices went up 30% and they bought" OK Fine, but the year before they went up 10%, the one before that, they went up 12%, WHEN will they go down? WHEN will it stop? The first year? Third year? 6th? No one knew, that's why people bought a house. Because they needed to live somewhere and wanted a house. Not everyone buys a house to sell it in 2 years for a profit.

Even now prices are high. When will they go down to prebuble levels? Maybe never. How long should people wait? Will the prices start creeping up BEFORE they pull the trigger? When will that be? Make sure you let them know. lol

Not everyone is "greedy". People just want to live somewhere and own it for themselves. Around here rent is expensive and there's no limit to how high they can raise the rent. Not too many siongle family homes for rent here. Fuck apartments where you hear your neighbor pissing in the middle of the night.

My friend owns a 1.2 million dollar 2 family house. He hears his upstairs neighbor taking a piss right over his head whenever the guy goes to the bathroom. 1.2 MILLION for that. lol

Holy OT. wtf?

 

[dead_reggin_storage_fashi]

GL BTW can I ask how many years it took for your $120K house to turn into a $400K appraised home?

texas home values never go up. so slow so rare.

 

[jnevin]

no, not really. if you understand real estate it's pretty easy to recognize a bubble. hell, when you appreciate 30% in a year that should say something.

but people are greedy, and uneducated infortunately

2.) they can still rent, if they know it's not a good time to buy...you can rent any type of apt/house you would need.
that may apply to sum, but it's mostly ignorance and/or greed

With all of your knowledge, you should have invested instead of camping out in a boiler room fumbling around with get rich quick ideas.

 

[jh1]

no, not really. if you understand real estate it's pretty easy to recognize a bubble. hell, when you appreciate 30% in a year that should say something.

but people are greedy, and uneducated infortunately

2.) they can still rent, if they know it's not a good time to buy...you can rent any type of apt/house you would need.
that may apply to sum, but it's mostly ignorance and/or greed

Understanding a market is NOT a fucking crystal ball to recongnizign the fact that you are in a bubble.

There are plenty of way more seasoned market makers than you that have found themselves caught in many many many many many bubbles throughout their lifetimes unexpectedly which much much much much greater understanding of the market that effected them than you might have of hte realestate market my swami wannabe bitch.




Now that the bubble is burts you're looking back and saying - SEE LOOK AT THE BUBBLE...

Please. If you knew it with 100% certainty you could have made the right financial moves and you'd be on a private island right now. But ur not.

 

[gonelifting]

That is the beauty/'danger' of a bubble. We all know it's a bubble, but WHEN will it burst?, is the question.

 

[bottleneckblooz]

I recently realized that my monthly mortgage payment is less than I pay for fucking income tax!

 

[rnch]

That is the beauty/'danger' of a bubble. We all know it's a bubble, but WHEN will it burst?, is the question.

hopefully not until i unload...i mean sell....the current renovation project....

 

[jenscats5]

Just bought a new home & settle/move on Monday.....going from $600/mo to $1300 a month.......but it'll be worth it leaving the Hood & having a driveway.

 

[KillahBee]

I want to kill myself. My fucking rent is more than some of your mortgages

 

[hanselthecaretaker]

I'd buy a house if I knew I wanted to live there long enough to pay it off.

 

[billfred]

well I have read you lived in MD/dc area?

in your area taxes and insurance a mortgage will be more if those are included into the payment.


most of the time when a home owenr who rents out a home, the rent they charge DOES NOT COVER there mortgage payment on that property and banks only use 70% of the income for debt to income ratio.

for example Jonnie sacks rents out his home for $2000 a month. Chances are his mortgage payment with taxes and insurance is $2200 a month. When Jonnie uses his rental income to qualify for another loan the banks only use 70% of his rental income. Ie on the income portion it will read only $1400 income from the property

I am going to have to call bs on this one bro. I have rented houses for years and never had one rent for less than my mortgage.

 

[billfred]

wrong, god, dad you're a millionaire!!

House Value $400,000, taxes $12,000/year (3%)

House Values goes up 3%

House Values = $412,000, up $12,000

Taxes = 3%, $12,360

Subtract from the new value and you'll see how it is a wash.

Taxes are on the FULL value of the land + improvements every year.

Your forgetting taxes and insurance are tax deductible, rent is not. Do your calculation again net of taxes.

 

[dead_reggin_storage_fashi]

I am going to have to call bs on this one bro. I have rented houses for years and never had one rent for less than my mortgage.

bro I do this for a living I see tax returns day in and day out.


1. most ppl who rent homes the rent doesnt cover the mortgage
2. most banks only view rent as 70% of the rental income

 

[billfred]

bro I do this for a living I see tax returns day in and day out.


1. most ppl who rent homes the rent doesnt cover the mortgage
2. most banks only view rent as 70% of the rental income

That may apply in your region but I have 5 properties in a partnership here in texas and all go for about 25% more than mortgage payments.

 

[dead_reggin_storage_fashi]

That may apply in your region but I have 5 properties in a partnership here in texas and all go for about 25% more than mortgage payments.

my branch writes loans nationwide, I see the numbers. it isnt the case trust me. Since most of the time the rent is less it just makes my job harder and a bigger pain in the ass