Forum Replies Created
-
AuthorPosts
-
CoronitaParticipant[quote=livinincali][quote=moneymaker]Wow 2.5% mortgage, I’m envious. That’s probably lower than the average car loan out there. Still ok with my 3.5%, but way to go flu.[/quote]
You can always hope we keep getting more like Japan. A 35 year mortgage there is 1.8%[/quote]
35 year mortgage? I’m waiting for 50+ year mortgages…
CoronitaParticipant[quote=moneymaker]Wow 2.5% mortgage, I’m envious. That’s probably lower than the average car loan out there. Still ok with my 3.5%, but way to go flu.[/quote]
It’s a 15year not 30. Yours is probably a 30yr Your monthly payments are probably much lower than what they would be at 15 year, so there’s a benefit there in that if you’re trying to qualify for more loans, it’s probably not going to impact you as much as it did for me with a 15 year.
The best 30 year loan that I found at the time was around 3% for no fee/no cost, and it was just momentarily.
You 3.5% is still pretty good. My rentals that did qualify for a 30 year cash out refi loan are around 4.25% (I took a hit for (1) rental property (2) condo and (3) loan too small. And I had to pay an $850 out of pocket cost each.
For the one that didn’t qualify for a loan, I pulled my HELOC, which is at prime-minus .25% or 3%
More importantly, it’s capped at 6%. Worst case scenario, at 6%, I would have a $0 cashflow on those. But hopefully, that will be paid off soon. I’ve been pulling money out of the stock market to pay off the helo, to prevent me from putting more money back into the markets. And I have RSU’s and ESPP shares that I sort of want to sell this year and not put back into the stock market too.Time to bring in some of the market speculation. I hate having debt. Good or bad.
CoronitaParticipantoh… nothing good is going to come out of this thread. I can already feel it.
I miss the days that we can talk about overleveraged irresponsible home buyers and roast those people.
CoronitaParticipant[quote=FlyerInHi][quote=poorgradstudent]
Clearly Rand Paul is pandering to anti-science fools rather than sticking to the less onorous personal liberty approach.[/quote]
Therein lies the difference. It’s not the same as AN said. There’s a difference in the quality of the approach and quality of the message.[/quote]
There’s a difference in the quality of the lies?
HA HA HA HA HA
February 3, 2015 at 4:12 PM in reply to: Opinions on VCAIX Vanguard California Intermediate-Term…. #782600CoronitaParticipant[quote=harvey]I hope this devolves into another pension debate.[/quote]
Oh god no.
CoronitaParticipant[quote=AN][quote=flu]I think for the by far the best place to work for geeks is orange county. I think you get above SD pay, and you’re company selection is more competitive. Down here, there’s not as much to choose from. Up in the the bay area, there’s a lot more to choose from, but cost of living is also insane up there.[/quote]Well, it depends on which industry you’re in, right? If you’re in biotech, I’m sure there are more jobs here than both OC and bay area. Same goes for defense. Not all geeks are the same. But in general, I agree that there are more jobs up there than down here. Which is why cost of living is also lower down here. I haven’t looked at OC in awhile, but the last time I did, relative to wages, it’s still cheaper down here than up there. This might just be because my requirement is a little unique.[/quote]
Yes, I should have qualified that with software/ee geeks.
CoronitaParticipantI think for the by far the best place to work for geeks is orange county. I think you get above SD pay, and you’re company selection is more competitive. Down here, there’s not as much to choose from. Up in the the bay area, there’s a lot more to choose from, but cost of living is also insane up there.
CoronitaParticipant[quote=AN][quote=flu]Paul is a retard.
What I’m a little curious about.
Don’t public schools check immunization records?
How did these kids get past that?[/quote]
Retards love company:“We’ve seen just a skyrocketing autism rate. Some people are suspicious that it’s connected to the vaccines. This person included. The science right now is inconclusive, but we have to research it,” then Sen. Obama said.
“There are some people who are suspicious that it’s connected to vaccines and triggers. But the science right now is inconclusive,” Obama said.
“I am committed to make investments to find the causes of autism, including possible environmental causes like vaccines,” said Clinton.
As for schools, as was said, CA does not have a mandatory vaccination. You can be exempt on personal belief. Which is why Malabu and Beverly Hills have <40% vaccination rate.[/quote]
You won't get any disagreement from me on that too. It's an equal opportunity retardedness.
CoronitaParticipantPaul is a retard.
What I’m a little curious about.
Don’t public schools check immunization records?
How did these kids get past that?February 2, 2015 at 11:18 AM in reply to: using equity from small properties for downpayment #782542CoronitaParticipant[quote=FlyerInHi]Putting taxes issues aside, there’s technically nothing that prevents the trustee of the trust from transferring the property to the son. The son then gets a mortgage and can transfer the property back to the trust.
It’s not done at the same time, for lien priority purposes, the deed of trust has to be recorded before the transfer back to the trust. Within minutes perhaps, but there’s an order.[/quote]
Ugh….. Come on, let’s think about this… If it really was *that* easy, don’t you think people would readily do this to avoid any sort of inheritance taxes?
CoronitaParticipantJust leave the metals for your kids. Doesn’t sound like you need the money anyway.
Plus since it is metals, as an added bonus, leave it in a safe deposit box.. What taxes?
CoronitaParticipant[quote=joec]In the UT Business section today, they are saying 1st time buyers are coming back in large percentages from before due to easier lending terms from fha/fannie/freddie…
Also, as these mid to late 20 somethings hit 30s-40s, there is huge pressure to settle down, get married, have kids. From the article, these is also talk of worst neighbors, constantly raised rents, roommates, etc…
Bottom line I took and my own view is that for a married couple, family…renting an apartment generally sucks and as we get older, having to deal with renting just sucks (for me). I “get” the single guys here loving renting and all that and can defend it all day, but I feel for most families with or without kids, renting is just ghetto.
I’d known “Asian” people (again) who looks down on renters or feel it’s pathetic that you can get knocked up with a kid, but can’t even afford to buy a house…(it’s viewed shamefully).
Just how it is…[/quote]
I keep say that….Most of you financially responsible people need to stop thinking about the logical/responsible thing YOU would do. Instead, you need start thinking they way that 70-80% of the other people in this country actually thinks and would do….
“So long as someone is willing to loan me money with payment terms that I can make, I don’t care what the loan terms is and MSRP price is right now.”
People have gotten past the “housing is evil, I’m not going to buy, banks are evil because they forced me to get bad loans” mindset. People are now back to the “banks are evil, because they aren’t giving me the credit to buy the things I deserve” mindset. And banks will give what these consumers want again.
If in doubt, look at all the new cars we have on the road here in S.D. Bunch of new bimmers, mercedes, and audi’s, a few porsches. You have people readily signing the papers to lease/loan for a BMW 335 that MSRP’s for over $50k now. That’s a 3 series BMW for $50k and it’s not even an M3. And don’t tell me most people driving these have $50k in cash that they paid for these things.
Clearly the credit spigot is turned back on. And it’s just a matter of time before that same spigot is turned back on for housing. Buy now, borrow and pay later. Good times are back.
CoronitaParticipant[quote=CA renter]
Yes, the Fed can manipulate rates for a long, long time. But what if rates were to go up?
I’m also thinking in terms of speculators/investors who’ve paid cash, like so many have done over the past few years. You’re more of a “mom and pop” kind of guy who is probably looking for ways to produce cash flow in retirement. What about the investors who have no emotional or other ties to the homes or areas? I think they would dump quickly if they thought that housing prices were going to decline and other investments were paying much higher returns (plus more opportunities for cap gains).[/quote]
I find that planning around too many extreme “what if’s” at the macro level is just hazardous to one’s financial health, because most of the what if’s end up not really being the case, because the end up being borderline extreme scenarios. And if they did actually happen, whether you held on to a home or didn’t buy or didn’t sell doesn’t really matter, because that borderline doomsday scenario, everyone is screwed more or less in the same way, so it won’t matter.
It’s really no different than the “what if scenario” of the entire CA state falling into the ocean because of an earthquake, and you’re trying to plan for that scenario to be safe, despite still living in CA. If you live in CA, no amount of planning will make you any more safer than anyone else living in the state when the entire state falls into the ocean, unless you’re ultra-wealthy and can maintain a fleet of private pilots that spontaneously airlifts you out of CA at minute’s notice.
Same could be said about the Fed. If we get to the point that the Fed cannot (as some of you say) “manipulate” the markets to get results, we got much bigger problems at hand, and you are in no better shape than anyone else in this country (unless you are ultra-rich perhaps with those nice parachutes). So it’s meaningless to plan for these catastrophic what-if scenarios, because for almost all of us, we’re equally screwed.
Mom and pop retirees aren’t going to be buying $1million+ homes as “investments” to earn 4-5%. Show me many $1million+ homes that cash flows well…. Chances are, if they are buying $1million+ homes, it’s either for personal enjoyment (for which they have the money) or for their John or Janny child that can’t afford to buy her own home (again, which, they have the money), so they’ll buy it for them.
And I’d even most retirees don’t have the patience or time to start being a landlord if they’ve never done it before. In fact, as a retiree, if one’s done their financially planning right, they shouldn’t be going after that maximum return anyway. They should be in their wealth preservation stage and try their best not to lose money.
CoronitaParticipant[quote]
My mother would not be able to qualify. She is handicapped and has no job. She would, in theory, move in with us and we would use her properties to leverage as down payment for the house we would all live in…so I guess she would need to take out equity and give that money to me which I would then use as a down payment? I think there are severe tax penalties for doing this, which I of course would want to avoid.
But to simplify, I still am not sure of the basic principle of whether or not one should take out equity or simply sell the property for a down payment.
[/quote]It’s not tax penalty per-se. It’s just she needs to pay capital gains taxes on it, since none of them are her primary home. ( If any of them were, she wouldn’t have to pay any capital gains taxes on her primary up to $250k.) The good news is depending on her tax bracket it will be between 5-15%, most likely on the lower side. Her tax hit might actually not be that bad because, as you say, she has no income right now, and she has a medical disability. Have you tried figure out exactly how much taxes would be if she did sell? Easiest way to figure that out is get a copy of turbo tax and run through the numbers for her.
For any sort of cash-out refinance, you’ll be able to take out at most 85% LTV I believe anyway (So if your value is appraised at $120k, you can cash out a max of $102k I think).
Your capital gains taxes your mom will end up paying in the worst case scenaro 15% I think (it will be less most likely because of her tax bracket). So if she sells and pays taxes on a $120k sales price (assuming her cost basis is $0, her cost basis might be above $0, but let’s assume she’s had the property for a long time). She’ll get back $102k after paying taxes.
In terms of how much cash of her’s you can immediately use towards a down payment, it’s a wash.
I guess a bigger question is whether you want to deal with two rental properties in Riverside and Arizona, being that you will have so much on your plate already at home. Because eventually, you will be the one dealing with it (directly or indirectly).
Also, the question is, do you have any other siblings for which your mom might be wanting to at least partially willing/trusting part of her estate too? I mean, are you sure you are the 100% beneficiary of her estate? I ask because you’re considering taking on additional debt for long term. Can you count that 100% of her assets/income will go to you to help pay for that additional debt load?
-
AuthorPosts
