"The Joys of Home Ownership"

[grphyx1]

I swear if I ever met you and you don't look like Sgt Slaughter I'd be upset

Psh, this is what General Contractors are for, ya newb.

 

[karamazov80]

Psh, this is what General Contractors are for, ya newb.

If I can do it myself, and can do it relatively quickly and inexpensively, then I ain't paying someone else to do it.

 

[thenammagazine]

I swear if I ever met you and you don't look like Sgt Slaughter I'd be upset

People said the same thing when I was using Blain from Predator as my sig and avy.

 

[CollectorNC]

Of course, the fridge, washer, and dryer aren't even covered on the "basic plan!" They cost extra

It varies state to state and plan to plan. The sellers of my home got the middle of the road one, but I checked the basic and it covers already installed appliances. Some may not, though. It's a crapshoot.

All I have to say is I better be dead before any of those things die. The biggest trauma, had to be having 16 boards of your hardword floor and the sub-floor replaced...all while your belongings are still in the same room UNPROTECTED!!! I literally can't read anymore, I have a nasty headache from all the stuff i had not encountered yet in home ownership.

Take it day by day. If you're married, engaged, dating don't take out home frustrations on each other. If you have friends helping, they are fair game Try to find something each day or week you like about the place and prioritize what has to be repaired/fixed (functional) and what is just cosmetic. Don't do improvements the first year like I did. If not for the first time homebuyer credit, we would be in the hole, doing improvements.

That is really great advice.

I agree, very good.

Gibby, sounds like you got pretty lucky. There is nothing that needs improvement, We actually did some of the layout, picked the faucets, the handles for the cabinets, the fridge, oven the hardwood floor the carpet the granite, the toilets, the tile, we even picked the paint color scheme (which the builder has since replicated in his other projects), we have a fiberglass roof (lifetime guarantee), so no major updates for the future. It is the frustration of not being prepared for the everyday. We went from 762sq ft to over 2400sq ft that's a big jump. I think if I had a month of no issues (the bug infestation almost drove me insane)I might actually feel less on the edge. But I am not kidding that we have had every single thing that could possibly go wrong with new construction go wrong with this place and it is our first home so it is killing me, and I am one foot in the grave and the other on a banana peel right now. Talking about it has helped seriously guys, I appreciate all the input and sharing.

We went from 1100 to 2500 square feet and a YARD. Beware of the YARD...it's like its own evil entity of maintenance

 

[ProgMatinee]

I guess it's the shock because this is our first place. I have been renting since 1989 so yeah it's been a rough transition. Thanks for giving me perspective. I look forward to the day where I can feel happy walking through the door.

That sucks to feel that way, but I'd imagine the problem isn't the concept of ownership, but that your house might be a lemon or a money pit. Happens now and then, I guess. All I can say is make sure you put the screws to the builder for as long as your warranty is good. Don't let anything bugging (get it ) you wait until its up.

But think about this, for maybe $200 more a month compared to renting, when you are old you have something of value to reverse mortgage and 1) get enough to pay for your diaper changing or 2)you have something of value that your children can fight over.

I honestly can't imagine the situation that someone who is 80 or 90years old and rented for their whole life would be in. Those are the type of people that end up needing their children or the government to put them in some crappy old folks home where they molest you and stuff and you're too old at that point to enjoy the molesting.

 

[Darth Snoopy]

Just out of curiosity...how many Freaks here, besides me, own their own home?

Free of any mortgage or banks, etc....they outright own their castle.

 

[VASith]

Nope...we have a mortgage. Need it for the tax breaks.

 

[grphyx1]

Congrats Darth Snoopy thats great! You must've started early.

Just out of curiosity...how many Freaks here, besides me, own their own home?

Free of any mortgage or banks, etc....they outright own their castle.

 

[grphyx1]

Oh we still are under warranty, so that's good and the builder is very responsible about fixing, it's the ppl that he sends that are questionable. And screw the diapers I am gonna outright poop my drawers and pants when i get older. on the bus, in a taxi at a restaurant

This has really helped me not feel so alone in my trauma and I actually will try to look at it in a different light. And I have to remember that you can only do what you can do..

All I can say is make sure you put the screws to the builder for as long as your warranty is good. Don't let anything bugging (get it ) you wait until its up.

But think about this, for maybe $200 more a month compared to renting, when you are old you have something of value to reverse mortgage and 1) get enough to pay for your diaper changing or 2)you have something of value that your children can fight over.

 

[ProgMatinee]

Just out of curiosity...how many Freaks here, besides me, own their own home?

Free of any mortgage or banks, etc....they outright own their castle.

Not yet. Recently took my mortgage down to 15 years though. My goal is to overpay on principle and get it paid off in 10 though which would mean free and clear at the age of 43 which I think is pretty good.

Nope...we have a mortgage. Need it for the tax breaks.

I never quite understood this. Lets say your tax rate is 30%, so you can only use 30% of the cost for a break, right? So you're still paying 70% of the interest? Paying 0 interest is still better than getting a tax break on only 30%, isn't it?

I'm not a tax accountant though.

 

[grphyx1]

I live with my partner and actually do not take any of this out on him, and vice versa. I won't be moving out of this place, i already told darth snoopy that when i die they will drill little holes in my statues and busts and pour a little bit of my ashes in each one. then the rest gets poured in the media room so i can look at all my babies

No YARD!! concrete patio.

Take it day by day. If you're married, engaged, dating don't take out home frustrations on each other. If you have friends helping, they are fair game Try to find something each day or week you like about the place and prioritize what has to be repaired/fixed (functional) and what is just cosmetic. Don't do improvements the first year like I did. If not for the first time homebuyer credit, we would be in the hole, doing improvements.



I agree, very good.



We went from 1100 to 2500 square feet and a YARD. Beware of the YARD...it's like its own evil entity of maintenance

 

[VASith]

Not yet. Recently took my mortgage down to 15 years though. My goal is to overpay on principle and get it paid off in 10 though which would mean free and clear at the age of 43 which I think is pretty good.



I never quite understood this. Lets say your tax rate is 30%, so you can only use 30% of the cost for a break, right? So you're still paying 70% of the interest? Paying 0 interest is still better than getting a tax break on only 30%, isn't it?

I'm not a tax accountant though.

In order to max out our itemized deductions we need both the interest write-off as well as the personal property tax writeoff. Here in Loudoun County, VA our PP tax rate is $4.20 per $100 of assessed value...we bought our house four years ago for almost 700,000. So for us, the mortgage helps with the taxes.

 

[attom44]

Somebody please explain what this means???? Outside of the whole building equity BS, when does the Joy HIT???!!! We have been in a new home for almost a year now and I swear that not a month has gone by that something new hasn't popped up. So somebody tell me it's going to get better?!!

Tell me about it.. 2 months ago our washer and dryer, died... had to buy a new set... in the bad winter we had I blew all four tires in a major pothole, 4 new tires there... my 6 year old imac computer finally died, a new imac computer was bought...and my central air-conditioning went...luckily that could be repaired, and my condo association decided to add a special assessment fee to each unit of $10,000 to replace and re-point all the bricks on the north side of my building....that put a hold on collecting for sure, but thank god for my tax returns... I feel like I single-handedly helped stimulate the economy this year...LOL! Finally in the black again.. let the collecting continue!

 

[ProgMatinee]

In order to max out our itemized deductions we need both the interest write-off as well as the personal property tax writeoff. Here in Loudoun County, VA our PP tax rate is $4.20 per $100 of assessed value...we bought our house four years ago for almost 700,000. So for us, the mortgage helps with the taxes.

I guess I still don't understand.

You have to pay the property tax, whether you own the house free and clear or not, and can use that in the deduction.

I'm not totally clear on the itemized vs standard deductions though. I still think paying zero interest is better than saving the tax burden though.

In simple math, lets say $100,000 income at 30% tax rate. You have $5000 of interest. So you really owe $95,000*.30 =$28,500. But you had to pay out of pocket the $5000 to the bank for interest so that is $33,500 total cost.

Whereas, if you simply owed taxes without the write off its only $30,000.

I might be looking at this all wrong??

 

[Darth Snoopy]

Congrats Darth Snoopy thats great! You must've started early.

Thanks.

I was just lucky to be in the right place at the right time and I bought it dirt cheap in a County Real Estate Tax auction back in the early 90's!

 

[ProgMatinee]

Thanks.

I was just lucky to be in the right place at the right time and I bought it dirt cheap in a County Real Estate Tax auction back in the early 90's!

Wow. So did you get it for like $10,000 from some old lady that refused to pay her taxes or something?

 

[Darth Snoopy]

Wow. So did you get it for like $10,000 from some old lady that refused to pay her taxes or something?

Yeah, something along those lines!

Without going into details, the amount I paid was slighty less than $10,000 and all I needed was 20% down after the auction.

 

[gibby]

Gibby, sounds like you got pretty lucky. There is nothing that needs improvement...

Sorry to hear about all the issues, grphyx1. If it makes you feel better, I think there are several people here in IL feeling your pain as well. My cousin worked for a construction co. for several years. About 3 years ago, though, the company started cutting corners everywhere in the house. He brought it up to the GC and then the owner multiple times. He was finally told he could take a hike if he didn't like it. Needless to say he quit on the spot.

Just keep the builder honest and make him bring back the help if they keep messing up your house.

Not yet. Recently took my mortgage down to 15 years though. My goal is to overpay on principle and get it paid off in 10 though which would mean free and clear at the age of 43 which I think is pretty good.



I never quite understood this. Lets say your tax rate is 30%, so you can only use 30% of the cost for a break, right? So you're still paying 70% of the interest? Paying 0 interest is still better than getting a tax break on only 30%, isn't it?

I'm not a tax accountant though.

I think it's sometimes more about what you can do with that extra principal payment. I know several people that use the extra principal money to invest/trade, and end up pulling down their yearly interest payments in about 2 months.

But I also know others who busted to pay down their mortgage first. I'm really not sure there's a correct answer, honestly. I'm taking the first approach currently. With compounding, it makes it more and more difficult to say that I'll pay off the house anytime soon.

Yeah, something along those lines!

Without going into details, the amount I paid was slighty less than $10,000 and all I needed was 20% down after the auction.

That is great, Darth Snoopy!!! Congrats!!!

 

[shocktrooper_au]

The joy comes after about 5 years, where your mortgage is still around the same, but your wages have gone up & everybody elses rents have increased, & you suddenly realise the money you've been paying is going back into your own pocket (kinda) and not the landlords

 

[VASith]

I guess I still don't understand.

You have to pay the property tax, whether you own the house free and clear or not, and can use that in the deduction.

I'm not totally clear on the itemized vs standard deductions though. I still think paying zero interest is better than saving the tax burden though.

In simple math, lets say $100,000 income at 30% tax rate. You have $5000 of interest. So you really owe $95,000*.30 =$28,500. But you had to pay out of pocket the $5000 to the bank for interest so that is $33,500 total cost.

Whereas, if you simply owed taxes without the write off its only $30,000.

I might be looking at this all wrong??

My wife and I owe lots every year at tax time due to stocks, savings, CDs, Mutuals and the fact that we withhold very little from each paycheck. Our itemized deduction is like 5 times whatever the standard deduction for a married couple....might even be more. But in order to reach the itemized deduction limit we need to write off as much as we can. Between the mortgage interest and property tax we can write off around 25k each year. Plus there are the "green" tax breaks from the govt for installing energy efficient appliances and improvements. Our financial guy stresses the importance of being able to write that mortgage payment off. Also we can borrow against our mortgage interest free up to 100,000. So I able to finance my old car with that and pay no interest on it.

Here's something I found online that explains it a bit better:

"Why pay interest at all, if I can pay off my home?
Some may argue that you need to pay interest in order to take advantage of the tax benefits. If you can save that money, why get a mortgage loan if you don’t need one?
If you can make more money with the money you would use to buy a home, that would be better for you. For instance if you are paying 6% for your home loan and get decent tax savings, your interest rate might end up being the equivalent of 5%. Now let’s say you can find a secured investment that could make 8%. Wouldn’t it make sense to invest your money there, instead of putting it into the walls of your home?
Let’s say you can only earn 5% on an investment. It would still be a good idea to get a mortgage and invest your money. The reason is that you are keeping your money liquid. If you put all your available funds into a home and there is an emergency, you will need to wait weeks or months to access those funds.
When you add up all these tax savings with your accountant, you might save thousands of dollars each year. You need to crunch the numbers yourself and see what works best for you and your family."