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March 12, 2008 at 8:02 PM #12086March 13, 2008 at 12:10 AM #168425
Doofrat
ParticipantIt makes total sense and here’s why:
Take $710,000 minus $80,000 down payment that you got from a home equity loan. You now have $630,000 financed.
Take $630,000 and multiply it by 5% interest which equals $31,500. This is the interest you pay. Add a little more, (lets say $4000 for principal) which gives you a total payment each year of $35,500.
Divide $35,500 by 12 and it equals a monthly payment of $2958.00.
They are asking $3000 for rent. It just about evens out.
Don’t like my math? Neither do I, but this is the way people think.
March 13, 2008 at 12:10 AM #168754ParticipantIt makes total sense and here’s why:
Take $710,000 minus $80,000 down payment that you got from a home equity loan. You now have $630,000 financed.
Take $630,000 and multiply it by 5% interest which equals $31,500. This is the interest you pay. Add a little more, (lets say $4000 for principal) which gives you a total payment each year of $35,500.
Divide $35,500 by 12 and it equals a monthly payment of $2958.00.
They are asking $3000 for rent. It just about evens out.
Don’t like my math? Neither do I, but this is the way people think.
March 13, 2008 at 12:10 AM #168755ParticipantIt makes total sense and here’s why:
Take $710,000 minus $80,000 down payment that you got from a home equity loan. You now have $630,000 financed.
Take $630,000 and multiply it by 5% interest which equals $31,500. This is the interest you pay. Add a little more, (lets say $4000 for principal) which gives you a total payment each year of $35,500.
Divide $35,500 by 12 and it equals a monthly payment of $2958.00.
They are asking $3000 for rent. It just about evens out.
Don’t like my math? Neither do I, but this is the way people think.
March 13, 2008 at 12:10 AM #168783ParticipantIt makes total sense and here’s why:
Take $710,000 minus $80,000 down payment that you got from a home equity loan. You now have $630,000 financed.
Take $630,000 and multiply it by 5% interest which equals $31,500. This is the interest you pay. Add a little more, (lets say $4000 for principal) which gives you a total payment each year of $35,500.
Divide $35,500 by 12 and it equals a monthly payment of $2958.00.
They are asking $3000 for rent. It just about evens out.
Don’t like my math? Neither do I, but this is the way people think.
March 13, 2008 at 12:10 AM #168859ParticipantIt makes total sense and here’s why:
Take $710,000 minus $80,000 down payment that you got from a home equity loan. You now have $630,000 financed.
Take $630,000 and multiply it by 5% interest which equals $31,500. This is the interest you pay. Add a little more, (lets say $4000 for principal) which gives you a total payment each year of $35,500.
Divide $35,500 by 12 and it equals a monthly payment of $2958.00.
They are asking $3000 for rent. It just about evens out.
Don’t like my math? Neither do I, but this is the way people think.
March 13, 2008 at 6:59 AM #168503jpinpb
ParticipantOk. I admit. Math is not my forte. This must be some new math or I’m just not using correct numbers. Even if I use your numbers and really give the benefit of doubt and he/she put 80k down that wasn’t a HELOC (b/c then they’ll have that additional monthly payment of what? 500?)
630k at a rate of 6% – Can you get a loan w/5%?
anyway 630k @ 6% = 3,777 + prop. tax of 525 + insurance? 100? = $4,402.
Now, I am not sure of how much they can write off on taxes. That’s another weakness of mine. Is he/she writing off 1400+ a month?
Say they are. So now they’re breaking even. What if something breaks in the house? How long before that 80k makes him/her money? How long are they holding on to this “investment” before they can sell it and make money? Is the rental market going to be the next bubble and next year they’re renting it for 5k?
Maybe I should find a realtor cheerleading board so I can understand. Everything I’m reading is saying market will go down in 2008, best optimistic is flat in 2009 and maybe pick up in 2010. The dire ones are saying it will suck until 2011 and then pick up.
Who to believe?
March 13, 2008 at 6:59 AM #168830ParticipantOk. I admit. Math is not my forte. This must be some new math or I’m just not using correct numbers. Even if I use your numbers and really give the benefit of doubt and he/she put 80k down that wasn’t a HELOC (b/c then they’ll have that additional monthly payment of what? 500?)
630k at a rate of 6% – Can you get a loan w/5%?
anyway 630k @ 6% = 3,777 + prop. tax of 525 + insurance? 100? = $4,402.
Now, I am not sure of how much they can write off on taxes. That’s another weakness of mine. Is he/she writing off 1400+ a month?
Say they are. So now they’re breaking even. What if something breaks in the house? How long before that 80k makes him/her money? How long are they holding on to this “investment” before they can sell it and make money? Is the rental market going to be the next bubble and next year they’re renting it for 5k?
Maybe I should find a realtor cheerleading board so I can understand. Everything I’m reading is saying market will go down in 2008, best optimistic is flat in 2009 and maybe pick up in 2010. The dire ones are saying it will suck until 2011 and then pick up.
Who to believe?
March 13, 2008 at 6:59 AM #168835ParticipantOk. I admit. Math is not my forte. This must be some new math or I’m just not using correct numbers. Even if I use your numbers and really give the benefit of doubt and he/she put 80k down that wasn’t a HELOC (b/c then they’ll have that additional monthly payment of what? 500?)
630k at a rate of 6% – Can you get a loan w/5%?
anyway 630k @ 6% = 3,777 + prop. tax of 525 + insurance? 100? = $4,402.
Now, I am not sure of how much they can write off on taxes. That’s another weakness of mine. Is he/she writing off 1400+ a month?
Say they are. So now they’re breaking even. What if something breaks in the house? How long before that 80k makes him/her money? How long are they holding on to this “investment” before they can sell it and make money? Is the rental market going to be the next bubble and next year they’re renting it for 5k?
Maybe I should find a realtor cheerleading board so I can understand. Everything I’m reading is saying market will go down in 2008, best optimistic is flat in 2009 and maybe pick up in 2010. The dire ones are saying it will suck until 2011 and then pick up.
Who to believe?
March 13, 2008 at 6:59 AM #168860ParticipantOk. I admit. Math is not my forte. This must be some new math or I’m just not using correct numbers. Even if I use your numbers and really give the benefit of doubt and he/she put 80k down that wasn’t a HELOC (b/c then they’ll have that additional monthly payment of what? 500?)
630k at a rate of 6% – Can you get a loan w/5%?
anyway 630k @ 6% = 3,777 + prop. tax of 525 + insurance? 100? = $4,402.
Now, I am not sure of how much they can write off on taxes. That’s another weakness of mine. Is he/she writing off 1400+ a month?
Say they are. So now they’re breaking even. What if something breaks in the house? How long before that 80k makes him/her money? How long are they holding on to this “investment” before they can sell it and make money? Is the rental market going to be the next bubble and next year they’re renting it for 5k?
Maybe I should find a realtor cheerleading board so I can understand. Everything I’m reading is saying market will go down in 2008, best optimistic is flat in 2009 and maybe pick up in 2010. The dire ones are saying it will suck until 2011 and then pick up.
Who to believe?
March 13, 2008 at 6:59 AM #168936ParticipantOk. I admit. Math is not my forte. This must be some new math or I’m just not using correct numbers. Even if I use your numbers and really give the benefit of doubt and he/she put 80k down that wasn’t a HELOC (b/c then they’ll have that additional monthly payment of what? 500?)
630k at a rate of 6% – Can you get a loan w/5%?
anyway 630k @ 6% = 3,777 + prop. tax of 525 + insurance? 100? = $4,402.
Now, I am not sure of how much they can write off on taxes. That’s another weakness of mine. Is he/she writing off 1400+ a month?
Say they are. So now they’re breaking even. What if something breaks in the house? How long before that 80k makes him/her money? How long are they holding on to this “investment” before they can sell it and make money? Is the rental market going to be the next bubble and next year they’re renting it for 5k?
Maybe I should find a realtor cheerleading board so I can understand. Everything I’m reading is saying market will go down in 2008, best optimistic is flat in 2009 and maybe pick up in 2010. The dire ones are saying it will suck until 2011 and then pick up.
Who to believe?
March 13, 2008 at 9:35 AM #168607boomer
ParticipantDon’t forget $700 per month in property taxes. That house is crap. I think it was a couple of agents that bought it last June. They have to be thrilled they dumped it. It was an out of town agent that sold it, probably an out of town buyer as well. I wouldn’t be surprised if they are planning to scrape it and build. There is a giant house next door.
March 13, 2008 at 9:35 AM #168937ParticipantDon’t forget $700 per month in property taxes. That house is crap. I think it was a couple of agents that bought it last June. They have to be thrilled they dumped it. It was an out of town agent that sold it, probably an out of town buyer as well. I wouldn’t be surprised if they are planning to scrape it and build. There is a giant house next door.
March 13, 2008 at 9:35 AM #168943ParticipantDon’t forget $700 per month in property taxes. That house is crap. I think it was a couple of agents that bought it last June. They have to be thrilled they dumped it. It was an out of town agent that sold it, probably an out of town buyer as well. I wouldn’t be surprised if they are planning to scrape it and build. There is a giant house next door.
March 13, 2008 at 9:35 AM #168965ParticipantDon’t forget $700 per month in property taxes. That house is crap. I think it was a couple of agents that bought it last June. They have to be thrilled they dumped it. It was an out of town agent that sold it, probably an out of town buyer as well. I wouldn’t be surprised if they are planning to scrape it and build. There is a giant house next door.
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