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ParticipantDeNiro is right on the money for the case where we get a very bad late 70s style inflation. If you can borrow money today at 6%, it very well may be 12% or more if inflation gets out of hand (some would say it already is). When this happens, salaries will rise quickly and pretty soon we’re all millionaires in American pesos. Suddenly the guy with the $700K home loan at 6% looks like a financial genius.
Damn I hope this doesn’t happen because I’m way too scared to borrow big for a home right now…
ParticipantDeNiro is right on the money for the case where we get a very bad late 70s style inflation. If you can borrow money today at 6%, it very well may be 12% or more if inflation gets out of hand (some would say it already is). When this happens, salaries will rise quickly and pretty soon we’re all millionaires in American pesos. Suddenly the guy with the $700K home loan at 6% looks like a financial genius.
Damn I hope this doesn’t happen because I’m way too scared to borrow big for a home right now…
ParticipantDeNiro is right on the money for the case where we get a very bad late 70s style inflation. If you can borrow money today at 6%, it very well may be 12% or more if inflation gets out of hand (some would say it already is). When this happens, salaries will rise quickly and pretty soon we’re all millionaires in American pesos. Suddenly the guy with the $700K home loan at 6% looks like a financial genius.
Damn I hope this doesn’t happen because I’m way too scared to borrow big for a home right now…
ParticipantYou also forgot the opportunity cost of your down payment. If it’s 20% of 325K, that’s 65K which would get you 3250/yr at 5%. Of course you’ll pay tax on that, let’s say 27% leaving you 2372/yr income on your money, just under $200/mo for keeping your money safe in a money market account. So your $1800/mo rent (probably realistic rent for a $325K condo) is really only $1600/mo.
There is no way that a $325K condo rents for $2100/mo. Maybe people are TRYING to rent them for that, but it would be rare for them to get that. I rent a nice place that would sell for at least $750K for less than $2500/mo.
ParticipantYou also forgot the opportunity cost of your down payment. If it’s 20% of 325K, that’s 65K which would get you 3250/yr at 5%. Of course you’ll pay tax on that, let’s say 27% leaving you 2372/yr income on your money, just under $200/mo for keeping your money safe in a money market account. So your $1800/mo rent (probably realistic rent for a $325K condo) is really only $1600/mo.
There is no way that a $325K condo rents for $2100/mo. Maybe people are TRYING to rent them for that, but it would be rare for them to get that. I rent a nice place that would sell for at least $750K for less than $2500/mo.
ParticipantYou also forgot the opportunity cost of your down payment. If it’s 20% of 325K, that’s 65K which would get you 3250/yr at 5%. Of course you’ll pay tax on that, let’s say 27% leaving you 2372/yr income on your money, just under $200/mo for keeping your money safe in a money market account. So your $1800/mo rent (probably realistic rent for a $325K condo) is really only $1600/mo.
There is no way that a $325K condo rents for $2100/mo. Maybe people are TRYING to rent them for that, but it would be rare for them to get that. I rent a nice place that would sell for at least $750K for less than $2500/mo.
ParticipantYou also forgot the opportunity cost of your down payment. If it’s 20% of 325K, that’s 65K which would get you 3250/yr at 5%. Of course you’ll pay tax on that, let’s say 27% leaving you 2372/yr income on your money, just under $200/mo for keeping your money safe in a money market account. So your $1800/mo rent (probably realistic rent for a $325K condo) is really only $1600/mo.
There is no way that a $325K condo rents for $2100/mo. Maybe people are TRYING to rent them for that, but it would be rare for them to get that. I rent a nice place that would sell for at least $750K for less than $2500/mo.
ParticipantYou also forgot the opportunity cost of your down payment. If it’s 20% of 325K, that’s 65K which would get you 3250/yr at 5%. Of course you’ll pay tax on that, let’s say 27% leaving you 2372/yr income on your money, just under $200/mo for keeping your money safe in a money market account. So your $1800/mo rent (probably realistic rent for a $325K condo) is really only $1600/mo.
There is no way that a $325K condo rents for $2100/mo. Maybe people are TRYING to rent them for that, but it would be rare for them to get that. I rent a nice place that would sell for at least $750K for less than $2500/mo.
ParticipantSome of these are gonna become really cheap. The biggest danger I see with the downtown condos, especially in the new buildings, is that the HOAs are gonna be bankrupt almost from day one. They will not be able to sell enough of these things to form a functioning HOA so the common areas are going to go to hell really quickly. Look for an established building and demand to see the HOA books. You will have to pay more for a unit in a functional building but it will be worth it…
ParticipantSome of these are gonna become really cheap. The biggest danger I see with the downtown condos, especially in the new buildings, is that the HOAs are gonna be bankrupt almost from day one. They will not be able to sell enough of these things to form a functioning HOA so the common areas are going to go to hell really quickly. Look for an established building and demand to see the HOA books. You will have to pay more for a unit in a functional building but it will be worth it…
ParticipantSome of these are gonna become really cheap. The biggest danger I see with the downtown condos, especially in the new buildings, is that the HOAs are gonna be bankrupt almost from day one. They will not be able to sell enough of these things to form a functioning HOA so the common areas are going to go to hell really quickly. Look for an established building and demand to see the HOA books. You will have to pay more for a unit in a functional building but it will be worth it…
ParticipantSome of these are gonna become really cheap. The biggest danger I see with the downtown condos, especially in the new buildings, is that the HOAs are gonna be bankrupt almost from day one. They will not be able to sell enough of these things to form a functioning HOA so the common areas are going to go to hell really quickly. Look for an established building and demand to see the HOA books. You will have to pay more for a unit in a functional building but it will be worth it…
ParticipantSome of these are gonna become really cheap. The biggest danger I see with the downtown condos, especially in the new buildings, is that the HOAs are gonna be bankrupt almost from day one. They will not be able to sell enough of these things to form a functioning HOA so the common areas are going to go to hell really quickly. Look for an established building and demand to see the HOA books. You will have to pay more for a unit in a functional building but it will be worth it…
ParticipantHe will make sure that I cannot be allowed to have a medical procedure that he believes is wrong.
This is not true at all. He has made his position clear on this topic many times. He believes that this issue is for the states to decide. As long as you reside in a state in which the people decide to make this procedure legal, you’ll be able to have one if you choose.
The basic principle he applies in this case is that the more difficult or divisive an issue is, the more local the laws governing it need to be. This allows like-minded people to form communities in which there is general agreement. Trying to force everyone in a country of 300M+ people to adopt the same stance on an morally difficult issue like that one is simply unrealistic.
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