Attention Home Owners
- Thread starter The Chaver
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ProgMatinee
circlesendwheretheybegin
I'm a big supporter of buying rather than renting, but there was an interesting read in MSN about a month ago that tried to argue for renting.
The premis was that if you took your $30,000 down payment plus the difference in price from renting and owning, and invested it in to the market averaging 8% for 30 years that the value at the end could be higher than the value of the house.
The article was a lot more detailed than that, but you get the gist. A month ago it was a decent idea...but now it obviously exposes the additional risk you take when investing. At least with investing in a house, as long as you can afford your payments, you have a place to live. You can't sleep under an etrade account.
The premis was that if you took your $30,000 down payment plus the difference in price from renting and owning, and invested it in to the market averaging 8% for 30 years that the value at the end could be higher than the value of the house.
The article was a lot more detailed than that, but you get the gist. A month ago it was a decent idea...but now it obviously exposes the additional risk you take when investing. At least with investing in a house, as long as you can afford your payments, you have a place to live. You can't sleep under an etrade account.
Malice
Super Freak
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i pay my taxes apart from my morgage, twice a year in april and december. i make out like fat cat at the end of year when i file my taxes. everything you put into your home at the end of the year you could claim. some people are different they rather pay rent and not deal with pro. tax but at the end of it all, they are paying off someone else's property off for them.
Darth Caedus
Formerly Congerking
Unless you kept your money in the current market.
It will eventually go back up.....I use the word eventually casually
Really for me the best reason to own rather than rent.... No annoying people above r below you (except for your family. and there is no escaping them).
ProgMatinee
circlesendwheretheybegin
Unless you kept your money in the current market.
Its all about timing. If you had to pull the money out now, its bad, but for me, I kinda wish I had $20,000 to put into the market because you can get some good value. Though I'm not sure where the bottom will be.
ProgMatinee
circlesendwheretheybegin
Really for me the best reason to own rather than rent.... No annoying people above r below you (except for your family. and there is no escaping them).
I've got plenty to annoy me from the left, right, front and back though!
Not to mention, those at the NW, SW, SE, NE, NNW, NNE, SSW, ETC. LOL.
The Craw
Super Freak
oh brother. owning a home is bad cuz of property taxes now?? now i've heard it all. i love this place.
ProgMatinee
circlesendwheretheybegin
oh brother. owning a home is bad cuz of property taxes now?? now i've heard it all. i love this place.
Renting is cool because bald hairy smelly invasive landlords rule. Don't you know nothing!
The Craw
Super Freak
they are only cool if they show off a little crack while they are doing some under the sink plumbing. speaking of which, you guys better tell your landlords to be careful if they are doing work under the sink or they might end up in the future.
Jesseawilson
Super Freak
31 yea, just smart purchasing and mortgaging. It is my 4th house and the first one I will own from rolling proceeds from the previous to this one. Also another big key is I absolutely never get a 30 year mortgage. If I cant afford it on a 15 then I don't need it. It forces you to pay it off earlier and gets you a significant interest rate reduction. As it stands I am 1 year into a 15 and it will be done in 6 more as I pay just about 50% additional every month towards the principal.
Jesse
I do all the work around my place.Helps keep the landlord off my back when I'm late.
Jesseawilson
Super Freak
I still don't know where this is coming from. Your property taxes have nothing to do with your income tax return unless you are so far behind the government does a tax grab and takes your return before you get it. If that's the case then it's your own fault for being behind on your taxes.
As you'll learn life is all about paying taxes. You pay property taxes once, I repeat one time. Either all at once during property tax time (not the same as "tax time" ie income taxes) or have your mortgage company take out a years taxes for you 1/12th at a time included with every monthly mortgage payment.
You do not pay property taxes all year, then at the end of the year, and then get your tax refund taken. That's just silly.
PS if your parents don't have enough money from their tax return to pay their property taxes then they need to either have more money taken out in taxes every month and let the government earn the interest on it (very stupid), or save money each month for their tax bill at the end of the year (duh), or buy a smaller house with lower property taxes.
FYI: Tax return are not free money that the government gives to you at the end of the year. If you get any return whatsoever that doesn't just involve a tax credit then you are doing it wrong. That is your money they are giving back to you because you overpaid during the year. It amazes me the amount of people who look at it like the government is doing them some huge favor every year by giving them a tax return. Claim married, claim 15 dependents do whatever you need to do to get as much of your paycheck as you can every month. Use the money all year and earn a return off of it then happily give the government their due at the end of the year. It can easily have the net effect of lowering your taxes by 30%-60% every year.
Anyways, sorry about that the Jew in my took over for a bit.
Damn jews.....Just kidding
Their house is small,it's a 3 bedroom ranch.And,I personally think they're not telling me the truth.How could you own a 3 bedroom ranch in a not so great area and still not have enough money after using your entire tax return to pay taxes on your house??
This is why this thread was started.To get some info on the very issue of why my parents are paying so much in taxes at the end of the year.My dad says that if he included the taxes in his mortgage every month,his mortgage would end up going from what it is now $750 to $1100.
My wife thinks they just don't want us to know they have any money
I may have worded it wrong.I wasn't trying to say that my parents where getting their tax return taken from them to pay for their property taxes.What I was saying,is that they use their tax return to help pay their property taxes,that's all.
They say they only get like $3000 grand back on their tax return and then have to pay $5000 on property tax on a house that is worth less than $200.000
Kabukiman
Greatest Person Ever
Yeah,have fun with that.
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