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(former)FormerSanDiegan
ParticipantLibor + 2.25%
Aug 31 12-month LIBOR : 1.3%
Fully Indexed ARM rate : 3.55 % –> nearest 1/8th
RATE : 3.625%
I thought it would be fun to track the reset rates as we go through the next wave of resetting loans.
Not much surf here.September 1, 2009 at 10:07 AM in reply to: FPA Capital: Here is What Institutional Money is Thinking #451438ParticipantRather than a coherent treatment of where the economy is headed and how to take advantage, this FPA update looks like a series of cut and pastes from financial blogs (like this one).
September 1, 2009 at 10:07 AM in reply to: FPA Capital: Here is What Institutional Money is Thinking #451633ParticipantRather than a coherent treatment of where the economy is headed and how to take advantage, this FPA update looks like a series of cut and pastes from financial blogs (like this one).
September 1, 2009 at 10:07 AM in reply to: FPA Capital: Here is What Institutional Money is Thinking #451974ParticipantRather than a coherent treatment of where the economy is headed and how to take advantage, this FPA update looks like a series of cut and pastes from financial blogs (like this one).
September 1, 2009 at 10:07 AM in reply to: FPA Capital: Here is What Institutional Money is Thinking #452046ParticipantRather than a coherent treatment of where the economy is headed and how to take advantage, this FPA update looks like a series of cut and pastes from financial blogs (like this one).
September 1, 2009 at 10:07 AM in reply to: FPA Capital: Here is What Institutional Money is Thinking #452236ParticipantRather than a coherent treatment of where the economy is headed and how to take advantage, this FPA update looks like a series of cut and pastes from financial blogs (like this one).
Participant[quote=Nor-LA-SD-guy][quote=SK in CV][quote=Nor-LA-SD-guy]
Yes it would definitely encourage rental property investment.[/quote]Why more than now? (yes, this is a test)[/quote]
Rich and well to do people would be looking (much harder) for a deduction, poor or moderate income people would need a roof and there would be a lot less incentive to buy their own place (it would not reduce the cost to build homes or the cost of land).
In the end the landlords would win with this.
Yes it would be good to own apartment units again.[/quote]
If this change happens, the price point at which home ownership makes sense will be well above the price at which owning rental property makes sense.
The end result is likely to be one in which people who can own property own rentals and live an a rental themselves. We’ll all rent from our neightbors, who will rent from us.
My guess is that this proposal would actually end up taking in far fewer taxes than projected.Participant[quote=Nor-LA-SD-guy][quote=SK in CV][quote=Nor-LA-SD-guy]
Yes it would definitely encourage rental property investment.[/quote]Why more than now? (yes, this is a test)[/quote]
Rich and well to do people would be looking (much harder) for a deduction, poor or moderate income people would need a roof and there would be a lot less incentive to buy their own place (it would not reduce the cost to build homes or the cost of land).
In the end the landlords would win with this.
Yes it would be good to own apartment units again.[/quote]
If this change happens, the price point at which home ownership makes sense will be well above the price at which owning rental property makes sense.
The end result is likely to be one in which people who can own property own rentals and live an a rental themselves. We’ll all rent from our neightbors, who will rent from us.
My guess is that this proposal would actually end up taking in far fewer taxes than projected.Participant[quote=Nor-LA-SD-guy][quote=SK in CV][quote=Nor-LA-SD-guy]
Yes it would definitely encourage rental property investment.[/quote]Why more than now? (yes, this is a test)[/quote]
Rich and well to do people would be looking (much harder) for a deduction, poor or moderate income people would need a roof and there would be a lot less incentive to buy their own place (it would not reduce the cost to build homes or the cost of land).
In the end the landlords would win with this.
Yes it would be good to own apartment units again.[/quote]
If this change happens, the price point at which home ownership makes sense will be well above the price at which owning rental property makes sense.
The end result is likely to be one in which people who can own property own rentals and live an a rental themselves. We’ll all rent from our neightbors, who will rent from us.
My guess is that this proposal would actually end up taking in far fewer taxes than projected.Participant[quote=Nor-LA-SD-guy][quote=SK in CV][quote=Nor-LA-SD-guy]
Yes it would definitely encourage rental property investment.[/quote]Why more than now? (yes, this is a test)[/quote]
Rich and well to do people would be looking (much harder) for a deduction, poor or moderate income people would need a roof and there would be a lot less incentive to buy their own place (it would not reduce the cost to build homes or the cost of land).
In the end the landlords would win with this.
Yes it would be good to own apartment units again.[/quote]
If this change happens, the price point at which home ownership makes sense will be well above the price at which owning rental property makes sense.
The end result is likely to be one in which people who can own property own rentals and live an a rental themselves. We’ll all rent from our neightbors, who will rent from us.
My guess is that this proposal would actually end up taking in far fewer taxes than projected.Participant[quote=Nor-LA-SD-guy][quote=SK in CV][quote=Nor-LA-SD-guy]
Yes it would definitely encourage rental property investment.[/quote]Why more than now? (yes, this is a test)[/quote]
Rich and well to do people would be looking (much harder) for a deduction, poor or moderate income people would need a roof and there would be a lot less incentive to buy their own place (it would not reduce the cost to build homes or the cost of land).
In the end the landlords would win with this.
Yes it would be good to own apartment units again.[/quote]
If this change happens, the price point at which home ownership makes sense will be well above the price at which owning rental property makes sense.
The end result is likely to be one in which people who can own property own rentals and live an a rental themselves. We’ll all rent from our neightbors, who will rent from us.
My guess is that this proposal would actually end up taking in far fewer taxes than projected.Participant[quote=Nor-LA-SD-guy]All this would do is put more money into the hands of people who invest in cash flow rentals,
OK more people would probably rent instead of buy and that may drive down property price for a while, but in the end it will just put more money into cash flow rental investors.
Choose your poison …[/quote]
Good point … amd this is a point people fail to grasp.
Currently, the price point at which a home makes financial sense as owner occupied is higher than when considered as a cash flow rental. If the owner occupied mortgage deduction is eliminated, the price point at which property becomes favorable to own as a rental will kick in at a higher price point than where it pencils out as owner occupied. In the long run this does not favor renters who would-be owners. In fact it would raise the differential between renting and owning. The reason is that interest is accounted as a business expense, not a deduction. The long-term equilibrium would tend to favor investors rather than renters who seek to become future owners.
Participant[quote=Nor-LA-SD-guy]All this would do is put more money into the hands of people who invest in cash flow rentals,
OK more people would probably rent instead of buy and that may drive down property price for a while, but in the end it will just put more money into cash flow rental investors.
Choose your poison …[/quote]
Good point … amd this is a point people fail to grasp.
Currently, the price point at which a home makes financial sense as owner occupied is higher than when considered as a cash flow rental. If the owner occupied mortgage deduction is eliminated, the price point at which property becomes favorable to own as a rental will kick in at a higher price point than where it pencils out as owner occupied. In the long run this does not favor renters who would-be owners. In fact it would raise the differential between renting and owning. The reason is that interest is accounted as a business expense, not a deduction. The long-term equilibrium would tend to favor investors rather than renters who seek to become future owners.
Participant[quote=Nor-LA-SD-guy]All this would do is put more money into the hands of people who invest in cash flow rentals,
OK more people would probably rent instead of buy and that may drive down property price for a while, but in the end it will just put more money into cash flow rental investors.
Choose your poison …[/quote]
Good point … amd this is a point people fail to grasp.
Currently, the price point at which a home makes financial sense as owner occupied is higher than when considered as a cash flow rental. If the owner occupied mortgage deduction is eliminated, the price point at which property becomes favorable to own as a rental will kick in at a higher price point than where it pencils out as owner occupied. In the long run this does not favor renters who would-be owners. In fact it would raise the differential between renting and owning. The reason is that interest is accounted as a business expense, not a deduction. The long-term equilibrium would tend to favor investors rather than renters who seek to become future owners.
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