Forum Replies Created
-
AuthorPosts
-
(former)FormerSanDiegan
Participant[quote=Dunerookie]Isn’t there a limit on how much rent can be raised in a given year? I thought it was 10%. Could be wrong.[/quote]
The limits on rent increases apply only to month-to-month leases. For longer-term leases (either 11 months or 12 months is the cuttoff I believe) there is no legal restriction.Where is someone paying only $750 for a 3/2 ? Is this in El Centro ?
ParticipantHey, I almost forgot about my Upromise account. I opened it back in 2001. Just looked today for the first time in maybe 2 years and I’ve accumulated $238. Mostly on Gas and groceries in 15-20 cent increments. If I keep up this pace, it will buy exactly one textbook freshman year.
Re: 529
When I opened the CA 529 it was TIAA_CREF, which had decent options. I also thought they might eventually provide a tax break, which was not such a stretch of the imagination back in 2001. I should probably switch to a better plan, but I’ve been contributing on autopilot for so long and I’m lazy.ParticipantHey, I almost forgot about my Upromise account. I opened it back in 2001. Just looked today for the first time in maybe 2 years and I’ve accumulated $238. Mostly on Gas and groceries in 15-20 cent increments. If I keep up this pace, it will buy exactly one textbook freshman year.
Re: 529
When I opened the CA 529 it was TIAA_CREF, which had decent options. I also thought they might eventually provide a tax break, which was not such a stretch of the imagination back in 2001. I should probably switch to a better plan, but I’ve been contributing on autopilot for so long and I’m lazy.ParticipantHey, I almost forgot about my Upromise account. I opened it back in 2001. Just looked today for the first time in maybe 2 years and I’ve accumulated $238. Mostly on Gas and groceries in 15-20 cent increments. If I keep up this pace, it will buy exactly one textbook freshman year.
Re: 529
When I opened the CA 529 it was TIAA_CREF, which had decent options. I also thought they might eventually provide a tax break, which was not such a stretch of the imagination back in 2001. I should probably switch to a better plan, but I’ve been contributing on autopilot for so long and I’m lazy.ParticipantHey, I almost forgot about my Upromise account. I opened it back in 2001. Just looked today for the first time in maybe 2 years and I’ve accumulated $238. Mostly on Gas and groceries in 15-20 cent increments. If I keep up this pace, it will buy exactly one textbook freshman year.
Re: 529
When I opened the CA 529 it was TIAA_CREF, which had decent options. I also thought they might eventually provide a tax break, which was not such a stretch of the imagination back in 2001. I should probably switch to a better plan, but I’ve been contributing on autopilot for so long and I’m lazy.ParticipantHey, I almost forgot about my Upromise account. I opened it back in 2001. Just looked today for the first time in maybe 2 years and I’ve accumulated $238. Mostly on Gas and groceries in 15-20 cent increments. If I keep up this pace, it will buy exactly one textbook freshman year.
Re: 529
When I opened the CA 529 it was TIAA_CREF, which had decent options. I also thought they might eventually provide a tax break, which was not such a stretch of the imagination back in 2001. I should probably switch to a better plan, but I’ve been contributing on autopilot for so long and I’m lazy.ParticipantInteresting thread.
Despite some meandering, the occasional red-herring, and the need for every thread to include the words straw man and ad hominem , the opposing points seem to have evolved to 2 primary issues :
1. Monthly costs of carrying the mortgage in esmith’s example is equivalent to rent at $2700 per month, plus a few hundred bucks. Therefore buying in this particular price/range and associated tax bracket is really not that much more expensive on a monthly cash flow basis.
2. The risks to buying in this particular example, however include the dead money put towards downpayment (opportunity cost), risk of job loss, risk of further erosion of principle, risk of large expenses related to property maintenance/repair.
Just an opinion, but in the current environment, it would seem that for most the risks would outweigh the fact that renting and owning are roughly equivalent, except in cases where one has significant other assets outside the down payment. (e.g. a few hundred K in retirement savings already or 50-100K cash).
ParticipantInteresting thread.
Despite some meandering, the occasional red-herring, and the need for every thread to include the words straw man and ad hominem , the opposing points seem to have evolved to 2 primary issues :
1. Monthly costs of carrying the mortgage in esmith’s example is equivalent to rent at $2700 per month, plus a few hundred bucks. Therefore buying in this particular price/range and associated tax bracket is really not that much more expensive on a monthly cash flow basis.
2. The risks to buying in this particular example, however include the dead money put towards downpayment (opportunity cost), risk of job loss, risk of further erosion of principle, risk of large expenses related to property maintenance/repair.
Just an opinion, but in the current environment, it would seem that for most the risks would outweigh the fact that renting and owning are roughly equivalent, except in cases where one has significant other assets outside the down payment. (e.g. a few hundred K in retirement savings already or 50-100K cash).
ParticipantInteresting thread.
Despite some meandering, the occasional red-herring, and the need for every thread to include the words straw man and ad hominem , the opposing points seem to have evolved to 2 primary issues :
1. Monthly costs of carrying the mortgage in esmith’s example is equivalent to rent at $2700 per month, plus a few hundred bucks. Therefore buying in this particular price/range and associated tax bracket is really not that much more expensive on a monthly cash flow basis.
2. The risks to buying in this particular example, however include the dead money put towards downpayment (opportunity cost), risk of job loss, risk of further erosion of principle, risk of large expenses related to property maintenance/repair.
Just an opinion, but in the current environment, it would seem that for most the risks would outweigh the fact that renting and owning are roughly equivalent, except in cases where one has significant other assets outside the down payment. (e.g. a few hundred K in retirement savings already or 50-100K cash).
ParticipantInteresting thread.
Despite some meandering, the occasional red-herring, and the need for every thread to include the words straw man and ad hominem , the opposing points seem to have evolved to 2 primary issues :
1. Monthly costs of carrying the mortgage in esmith’s example is equivalent to rent at $2700 per month, plus a few hundred bucks. Therefore buying in this particular price/range and associated tax bracket is really not that much more expensive on a monthly cash flow basis.
2. The risks to buying in this particular example, however include the dead money put towards downpayment (opportunity cost), risk of job loss, risk of further erosion of principle, risk of large expenses related to property maintenance/repair.
Just an opinion, but in the current environment, it would seem that for most the risks would outweigh the fact that renting and owning are roughly equivalent, except in cases where one has significant other assets outside the down payment. (e.g. a few hundred K in retirement savings already or 50-100K cash).
ParticipantInteresting thread.
Despite some meandering, the occasional red-herring, and the need for every thread to include the words straw man and ad hominem , the opposing points seem to have evolved to 2 primary issues :
1. Monthly costs of carrying the mortgage in esmith’s example is equivalent to rent at $2700 per month, plus a few hundred bucks. Therefore buying in this particular price/range and associated tax bracket is really not that much more expensive on a monthly cash flow basis.
2. The risks to buying in this particular example, however include the dead money put towards downpayment (opportunity cost), risk of job loss, risk of further erosion of principle, risk of large expenses related to property maintenance/repair.
Just an opinion, but in the current environment, it would seem that for most the risks would outweigh the fact that renting and owning are roughly equivalent, except in cases where one has significant other assets outside the down payment. (e.g. a few hundred K in retirement savings already or 50-100K cash).
ParticipantSo, the unit in question ‘cash flows’ at about 260 x rent with 20% down. Does that make sense to you?
Why use a rule of thumb (price as a multiple of rent) when the numbers are all laid out already.
Rules of thumb do not account for progressive tax rates or the loss of those breaks at the point where the standard deduction exceeds itemized.
A break-even analysis for rent versus buy is completely different for someone buying making 60K compared to someone making 130K. Therefore the ratio of price to rent at which renting and buying are equivalent on a monthly cash flow basis are significantly different, depending on income levels. Thorough analysis trumps rules of thumb.
ParticipantSo, the unit in question ‘cash flows’ at about 260 x rent with 20% down. Does that make sense to you?
Why use a rule of thumb (price as a multiple of rent) when the numbers are all laid out already.
Rules of thumb do not account for progressive tax rates or the loss of those breaks at the point where the standard deduction exceeds itemized.
A break-even analysis for rent versus buy is completely different for someone buying making 60K compared to someone making 130K. Therefore the ratio of price to rent at which renting and buying are equivalent on a monthly cash flow basis are significantly different, depending on income levels. Thorough analysis trumps rules of thumb.
ParticipantSo, the unit in question ‘cash flows’ at about 260 x rent with 20% down. Does that make sense to you?
Why use a rule of thumb (price as a multiple of rent) when the numbers are all laid out already.
Rules of thumb do not account for progressive tax rates or the loss of those breaks at the point where the standard deduction exceeds itemized.
A break-even analysis for rent versus buy is completely different for someone buying making 60K compared to someone making 130K. Therefore the ratio of price to rent at which renting and buying are equivalent on a monthly cash flow basis are significantly different, depending on income levels. Thorough analysis trumps rules of thumb.
-
AuthorPosts
