Thread: My newest piece of exercise equipment

Originally posted by MtnBikerChk

MTNB,,, YOUR IAM's WIFE?????
How cool is that! You rock girlfriend!!!!!

Originally posted by I Are Baboon
Actually, Eric Carter rides a Mongoose and he won the men's pro downhill at the first NORBA race this year (Big Bear, CA)!

IAB,, I'm just fooling around you know that. Mongoose has a very good bike line. I'd wear the shirt if I owned one. I just wouldn't wear it now because I wouldn't give free publicity to a bike company that I don't own any of their products. I ride Cannondale and GT. I wear their clothing lines. (I still feel they should pay me but they haven't cut a check yet) BASTARDS.

Originally posted by I Are Baboon
Are you serious?

Sure rates are low, which means everyone and their mothers are trying to buy houses. Because of that, house prices are through the roof. In most cases, sellers are getting asking price and then some.

Interest Rates are the loses in like 50 years but IAB, your 100% correct. The prices of new homes is simply outrageous. Shit I bout my home 7 years ago 2,200 SQ not including the Finished Basement I did after purchase for 178,000.00. I just refinanced and it was appraised at 310,000.00. That is great for me but totally rediculous. Now some may be thinking,, yea well that is what it appraised for that doesn't mean you would get it. Well I beg to differ. Homes in my development have been doing exactly as you said IAB. They are getting asking price and in some recent cases offering MORE then the asking price so as not to loose the sale. INSANE!

Originally posted by Prince
What if you looked at it this way:

If you wait 12 more months (hypothetically, let's assume that things change) and your rent is $1,000/month, that's $12,000 down the drain in rent for the year, plus the tax write off of your interest which could easily be another couple of thousand dollars that you won't get, and most likely interest rates will get higher within the next year, let say at leat 1 percent, plus the 10% (approxiamtely) in appreciation on the house, how much have you lost out in only one year? Probably at least $20,000 or more.

That is how you have to determine whether or not it's really worth waiting.

anyone who lectures me about the interest deduction will have to be shot The first full year of interest on a $200,000 mortgage is approx $9,800 (at 5%). Thanks to EGTRRA (new tax legislation) the 2003 standard deduction has increased for married filing jointly to twice the single rate totalling $9,500, a $1,550 increase from the $7,950 pre-Act amount. And, with the new tax brackets, say we're in the 31% bracket, that's a $93 tax difference.

any questions?

so (hypothetically) my rent is $1,000/month. Mortgage payments on a house in our area (that we like) would bring us to monthly payments of $1,900. It's also a cash flow issue.

Yeah but you are still loosing money through the house appreciating. You could buy a small house with the intention of buying or building in say 5 years. The house you bought will appreciate enough to make the down payment for you when you sell! If you rent, you don't have that money.

Originally posted by MtnBikerChk
It is indeed a seller's market right now. Not only are they getting asking price, in many cases they get ABOVE asking price because buyers get into bidding wars over houses.

I want no part of that.

I just wrote an economics article as part of a report we issued. In the past, recessions have been caused (in part) by high interest rates. This time, the recession was caused by other factors and the rates are low. This is the ONLY market that is doing well right now. People who normally could not afford mortgages are buying homes they cannot afford because the rates are so low. This is driving the costs up. The only people who benefit are people who already own.

It's always that way. When I bought mine in 1997, I had to go back and up my offer cause someone made a higher offer. Real estate is the best money investment you will ever make. THink prices are high now? Wait 5 years. They will almost double..........especially in your area. You live in one of the highest areas in the country. I have people live around me that have moved from the northest. They have double the house for half of what they were paying!!! The longer you wait, the worse it will get!!

Originally posted by dg806
Yeah but you are still loosing money through the house appreciating. You could buy a small house with the intention of buying or building in say 5 years. The house you bought will appreciate enough to make the down payment for you when you sell! If you rent, you don't have that money.

you can't lose money on a house you don't own.

Yeah, but all that money on rent could be going in a house to make money!

Originally posted by MtnBikerChk
anyone who lectures me about the interest deduction will have to be shot The first full year of interest on a $200,000 mortgage is approx $9,800 (at 5%). Thanks to EGTRRA (new tax legislation) the 2003 standard deduction has increased for married filing jointly to twice the single rate totalling $9,500, a $1,550 increase from the $7,950 pre-Act amount. And, with the new tax brackets, say we're in the 31% bracket, that's a $93 tax difference.

any questions?

so (hypothetically) my rent is $1,000/month. Mortgage payments on a house in our area (that we like) would bring us to monthly payments of $1,900. It's also a cash flow issue.

Okay, I will give you the tax part, since you're an accountant I will not argue. But you did not address any of the other points I made, other than the loss of rent which you agreed with.

Originally posted by MtnBikerChk
anyone who lectures me about the interest deduction will have to be shot The first full year of interest on a $200,000 mortgage is approx $9,800 (at 5%). Thanks to EGTRRA (new tax legislation) the 2003 standard deduction has increased for married filing jointly to twice the single rate totalling $9,500, a $1,550 increase from the $7,950 pre-Act amount. And, with the new tax brackets, say we're in the 31% bracket, that's a $93 tax difference.

any questions?

so (hypothetically) my rent is $1,000/month. Mortgage payments on a house in our area (that we like) would bring us to monthly payments of $1,900. It's also a cash flow issue.

I hate to argue with another accountant, but you are forgetting that the interest deduction is not your only deduction. When you itemize, you also deduct state income taxes and charitable contribution. You will have to add these amounts to your calculation to project your tax savings.

However, I do agree that people focus to much on the tax benefit and ignore the other economic issues.

EDIT: also, the real estate taxes need to be considered as well.