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August 1, 2008 at 9:54 AM in reply to: Sort of On Topic. Is there any issue over overpricing and overselling a home to a relative if it’s an all cash deal? #250545August 1, 2008 at 9:54 AM in reply to: Sort of On Topic. Is there any issue over overpricing and overselling a home to a relative if it’s an all cash deal? #250554
(former)FormerSanDiegan
ParticipantThis looks a lot like a person trying to avoid estate tax. Hiding transfers of large sums in transactions is an old trick that rich folks try to use to transfer wealth while avoiding estate tax.
Transfers among relatives tend to draw scrutiny.
You also might want to look into the details of the Duke Cunningham case and see if his sale of overpriced house violated laws other than the obvious influence peddling charges.
P.S. – The relative would overpay by 5-6 K per year in property taxes.
ParticipantI’m no expert, but … Regarding commodity prices : The GDP often quoted is real GDP, accounting for inflation. So when GDP is reported to be 1% it is growth above inflation estimates. I suppose commodity prices can influence GDP by industries that produce or mine commodities having a larger output. However, raw material production is a relatively small part of our service-oriented economy. Even manufacturing is smaller than the service economy. So, soaring commodity prices most likely reduce real GDP growth in the US.
Current defense spending is based on the budget passed for FY08 which started in October 2007. I believe that there is a seasonal increase in defense spending in the july-September quarter due to fiscal year end targets. This is independent of the election cycle. Any election cycle dependency would have to have been put in place last September. In either case that would impact the current quarter more so than the 2nd quarter which was just reported.
ParticipantI’m no expert, but … Regarding commodity prices : The GDP often quoted is real GDP, accounting for inflation. So when GDP is reported to be 1% it is growth above inflation estimates. I suppose commodity prices can influence GDP by industries that produce or mine commodities having a larger output. However, raw material production is a relatively small part of our service-oriented economy. Even manufacturing is smaller than the service economy. So, soaring commodity prices most likely reduce real GDP growth in the US.
Current defense spending is based on the budget passed for FY08 which started in October 2007. I believe that there is a seasonal increase in defense spending in the july-September quarter due to fiscal year end targets. This is independent of the election cycle. Any election cycle dependency would have to have been put in place last September. In either case that would impact the current quarter more so than the 2nd quarter which was just reported.
ParticipantI’m no expert, but … Regarding commodity prices : The GDP often quoted is real GDP, accounting for inflation. So when GDP is reported to be 1% it is growth above inflation estimates. I suppose commodity prices can influence GDP by industries that produce or mine commodities having a larger output. However, raw material production is a relatively small part of our service-oriented economy. Even manufacturing is smaller than the service economy. So, soaring commodity prices most likely reduce real GDP growth in the US.
Current defense spending is based on the budget passed for FY08 which started in October 2007. I believe that there is a seasonal increase in defense spending in the july-September quarter due to fiscal year end targets. This is independent of the election cycle. Any election cycle dependency would have to have been put in place last September. In either case that would impact the current quarter more so than the 2nd quarter which was just reported.
ParticipantI’m no expert, but … Regarding commodity prices : The GDP often quoted is real GDP, accounting for inflation. So when GDP is reported to be 1% it is growth above inflation estimates. I suppose commodity prices can influence GDP by industries that produce or mine commodities having a larger output. However, raw material production is a relatively small part of our service-oriented economy. Even manufacturing is smaller than the service economy. So, soaring commodity prices most likely reduce real GDP growth in the US.
Current defense spending is based on the budget passed for FY08 which started in October 2007. I believe that there is a seasonal increase in defense spending in the july-September quarter due to fiscal year end targets. This is independent of the election cycle. Any election cycle dependency would have to have been put in place last September. In either case that would impact the current quarter more so than the 2nd quarter which was just reported.
ParticipantI’m no expert, but … Regarding commodity prices : The GDP often quoted is real GDP, accounting for inflation. So when GDP is reported to be 1% it is growth above inflation estimates. I suppose commodity prices can influence GDP by industries that produce or mine commodities having a larger output. However, raw material production is a relatively small part of our service-oriented economy. Even manufacturing is smaller than the service economy. So, soaring commodity prices most likely reduce real GDP growth in the US.
Current defense spending is based on the budget passed for FY08 which started in October 2007. I believe that there is a seasonal increase in defense spending in the july-September quarter due to fiscal year end targets. This is independent of the election cycle. Any election cycle dependency would have to have been put in place last September. In either case that would impact the current quarter more so than the 2nd quarter which was just reported.
ParticipantYeah 4 years ain’t bad. But after that…lol
After 4 years he can take his $1 MIllion assets plus whatever gains (maybe 1.2 M after 4 years) and pay off the loan if it resets too high. OR if his house dropped in half or more by price, he can walk away, and buy his house as a REO or buy a similar one using all cash, and still have about 700K left laying around.
It’s really a no-lose proposition for people in his situation.ParticipantYeah 4 years ain’t bad. But after that…lol
After 4 years he can take his $1 MIllion assets plus whatever gains (maybe 1.2 M after 4 years) and pay off the loan if it resets too high. OR if his house dropped in half or more by price, he can walk away, and buy his house as a REO or buy a similar one using all cash, and still have about 700K left laying around.
It’s really a no-lose proposition for people in his situation.ParticipantYeah 4 years ain’t bad. But after that…lol
After 4 years he can take his $1 MIllion assets plus whatever gains (maybe 1.2 M after 4 years) and pay off the loan if it resets too high. OR if his house dropped in half or more by price, he can walk away, and buy his house as a REO or buy a similar one using all cash, and still have about 700K left laying around.
It’s really a no-lose proposition for people in his situation.ParticipantYeah 4 years ain’t bad. But after that…lol
After 4 years he can take his $1 MIllion assets plus whatever gains (maybe 1.2 M after 4 years) and pay off the loan if it resets too high. OR if his house dropped in half or more by price, he can walk away, and buy his house as a REO or buy a similar one using all cash, and still have about 700K left laying around.
It’s really a no-lose proposition for people in his situation.ParticipantYeah 4 years ain’t bad. But after that…lol
After 4 years he can take his $1 MIllion assets plus whatever gains (maybe 1.2 M after 4 years) and pay off the loan if it resets too high. OR if his house dropped in half or more by price, he can walk away, and buy his house as a REO or buy a similar one using all cash, and still have about 700K left laying around.
It’s really a no-lose proposition for people in his situation.Participantpeterb – I believe the government understates inflation. However, I find it equally hard to believe the shadowstats GDP estimates that cumulative GDP growth has essentially been 0% from 1986 to 2008.
Participantpeterb – I believe the government understates inflation. However, I find it equally hard to believe the shadowstats GDP estimates that cumulative GDP growth has essentially been 0% from 1986 to 2008.
Participantpeterb – I believe the government understates inflation. However, I find it equally hard to believe the shadowstats GDP estimates that cumulative GDP growth has essentially been 0% from 1986 to 2008.
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