Oh yeah, we can afford it. And I'm just not of the mind that we should just wait to buy because prices will go down because really, no one knows what will happen. Gas just went up to past $3 today. You just don't know.
Posted by DjPiLL
A Good Read
Here is a quote
But at least you didn't throw money away renting, right?
Let's assume you manage to scrape together $60,000 for a down payment and finance with a low interest rate – 4.6 percent for a 5-year ARM since you aren't sure you'll stick around very long.
During your first year you'll pay $10,960 in interest and only $3,800 toward principal. What you do stash away as principal will likely be eaten up by property taxes, which range from 1 percent to 3 percent of the price of the home, depending on where you live. (See 'Big city taxes.')
Add to that homeowners dues and maintenance costs and you very well may 'throw away' more money owning than renting.
It's true that you'll get some tax breaks on the mortgage interest. Assuming you itemize your deductions and are in the 25 percent tax bracket, the $10,960 you pay in interest may work out to a $2,740 deduction from your federal income taxes.
Then again, if you rent you can always take the standard deduction, $4,850 for singles and $9,700 for married couples filing jointly in 2004.
Posted by Blu-ize
This article doesn't take into account appreciation.
Posted by Blu-ize
This article doesn't take into account appreciation.
Consider this scenario: You buy a $300,000 house and sell it a year later for 10 percent more than what you paid, which is an exceptional return by historical standards. After you pay the real estate agent, account for your closing costs and pay capital gains taxes, you will walk away with about $6,000 – which you may have already blown on new appliances and furniture.
If under the same scenario your house appreciates 5 percent, which is still a solid return for real estate, you'll lose money on the deal.
Posted by DjPiLL
Posted by Blu-ize
This article doesn't take into account appreciation.
Actually... it does now that I re-read it.
Consider this scenario: You buy a $300,000 house and sell it a year later for 10 percent more than what you paid, which is an exceptional return by historical standards. After you pay the real estate agent, account for your closing costs and pay capital gains taxes, you will walk away with about $6,000 – which you may have already blown on new appliances and furniture.
If under the same scenario your house appreciates 5 percent, which is still a solid return for real estate, you'll lose money on the deal.
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Posted by Annieb
I'm confused about this 'paying off someone else's mortgage' thing. What does that mean? I never heard this before. I live in a building in nyc with about 50 apts...whose mortgage am I paying off? I'm out of the loop on the lingo i guess.
I also think it depends on your situation. I figured out that for the rent we pay we could afford a home worth $X however, we want to buy a home worth $X+. So, we rent until we can afford![]()
Posted by glenda2004
I dont get it either. If you are living with family then you dont MIND helping them pay the mortgage?
What? that doesnt even make sense. Geez if everyone went around thinking like that then we'd have a whole lot of depressed people walking around.
Paying rent whether in a building or a home that was built that way (2 family home) isnt like paying someone elses mortgage. Geez you make it sound like you just went to a total stranger from the street and said 'Here take $1500 for your mortgage and Ill continue to pay you for the rest of the year this amount, meet me here and in exchange for nothing' THATS PAYING SOMEONE ELSES MORTGAGE, Paying rental on an apartment that is your home, where you live and eat and sleep and have company etc etc is not paying someone elses mortgage. You are getting something in return, a place to live. Its like when you purchase something for yourself, if you buy a car from a dealer he is making money and he is probably going to use some if not all to pay for his mortgage and other life expenses are you going to reproach him for that too? Whats the sense in looking at things that way?
Rent doesnt = money in garbage, you stopping by a random garbage can and throwing money into it and then walking away is throwing money in the garbage. You paying rent so you arent homeless until you can buy a home (if you want to buy one) is something totally different dont equate the two its a pretty lame thing to do.
I just think thats a phrase made up intentionally to scare people into buying so they 'dont pay other's mortgage' Geez![]()
Hahah imagine everytime I sent a check out to the landlord Id get a pain in my stomach becausse deep down I know Im PAYING HER MORTGAGE That Byotch how dare she!!! I hate her cause she makes me pay her mortgage while I live in this gorgeous apartment and save over 1K a month just on rent alone.
The nerve!
If you buy then buy be happy with your choice but dont say you did it cause you didnt want to pay others mortgages cause that just doenst make sense and you'll get alot of weird looksand please dont say that that is what your realtor said
thats even worse!
Posted by Hazeleyes33
Not all the time you are saving on rent. My mortgage is lower than any rent around here. My rent was $650/month then and it now $950. My mortgage, taxes AND homeowners is $50 more a month. You can't beat that-AND I own my home and can sell it if I want.
Posted by glenda2004
I dont get it either. If you are living with family then you dont MIND helping them pay the mortgage?
What? that doesnt even make sense. Geez if everyone went around thinking like that then we'd have a whole lot of depressed people walking around.
Paying rent whether in a building or a home that was built that way (2 family home) isnt like paying someone elses mortgage. Geez you make it sound like you just went to a total stranger from the street and said 'Here take $1500 for your mortgage and Ill continue to pay you for the rest of the year this amount, meet me here and in exchange for nothing' THATS PAYING SOMEONE ELSES MORTGAGE, Paying rental on an apartment that is your home, where you live and eat and sleep and have company etc etc is not paying someone elses mortgage. You are getting something in return, a place to live. Its like when you purchase something for yourself, if you buy a car from a dealer he is making money and he is probably going to use some if not all to pay for his mortgage and other life expenses are you going to reproach him for that too? Whats the sense in looking at things that way?
Rent doesnt = money in garbage, you stopping by a random garbage can and throwing money into it and then walking away is throwing money in the garbage. You paying rent so you arent homeless until you can buy a home (if you want to buy one) is something totally different dont equate the two its a pretty lame thing to do.
I just think thats a phrase made up intentionally to scare people into buying so they 'dont pay other's mortgage' Geez![]()
Hahah imagine everytime I sent a check out to the landlord Id get a pain in my stomach becausse deep down I know Im PAYING HER MORTGAGE That Byotch how dare she!!! I hate her cause she makes me pay her mortgage while I live in this gorgeous apartment and save over 1K a month just on rent alone.
The nerve!
If you buy then buy be happy with your choice but dont say you did it cause you didnt want to pay others mortgages cause that just doenst make sense and you'll get alot of weird looksand please dont say that that is what your realtor said
thats even worse!
Sure, but it goes both ways. People who do rent sometimes pass judgment about people who do buy houses now. It's a situational thing whether it's better to rent or buy. My sister and her husband have rented for probably 7 years, but their rent was only around $650. I would rent for a long, long time if my rent was that low. For some people, they feel fine renting, and for some, they feel better buying.
Posted by DjPiLL
Posted by Hazeleyes33
Not all the time you are saving on rent. My mortgage is lower than any rent around here. My rent was $650/month then and it now $950. My mortgage, taxes AND homeowners is $50 more a month. You can't beat that-AND I own my home and can sell it if I want.
Thats a good deal. But there is no way thats the case anymore if you buy now with today's prices.
But anyways.... not everybody's landlord that you rent from has a mortgage.
What do people that want to say 'I am paying someone else's mortgage' say when their landlord has no mortgage.
Maybe they are paying for their landlord's crack addition instead. Maybe thats better.![]()
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Posted By DjPiLL
You are not paying off someone else's mortgage. You are paying for a PLACE TO LIVE.
