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moneymaker
ParticipantYes if the cost issue is “fixed”($10 band aids), then the health care system will be a lot healthier,pun intended. Then everything will work itself out. Until then the financial rape of individuals/companies will just pass to the government. I believe the auto repair industry in CA was “reformed” many years ago by forcing mechanics(just substitue doctor here for a fix)to quote prices upfront and in writing. Without upfront cost knowledge(think dinner menu) there is no competition.
moneymaker
ParticipantYes if the cost issue is “fixed”($10 band aids), then the health care system will be a lot healthier,pun intended. Then everything will work itself out. Until then the financial rape of individuals/companies will just pass to the government. I believe the auto repair industry in CA was “reformed” many years ago by forcing mechanics(just substitue doctor here for a fix)to quote prices upfront and in writing. Without upfront cost knowledge(think dinner menu) there is no competition.
moneymaker
Participant[quote=scaredycat]as I understand it, there is ZERO TAX BENEFIT. I pay say $16,000 a year in interest, then 3,500 in prop taxes, 19.5k, but i get 11k now as a std deduction, so it’s really just 8.5k more, so 30% of 8.5k = 2500, which is less than the prop taxes i otherwise wouldnt have to pay. so NO TAX ADVANTAGE. why does everyone at work say I am getting a TAX BREAK?[/quote]
You probably won’t even come close to paying $16,000 in interest the first year or after the 6th year so you only have about a 5 year window there, I think the days of “getting” the tax break are from years of high interest/and or high home prices,looks like those days are behind us.moneymaker
Participant[quote=scaredycat]as I understand it, there is ZERO TAX BENEFIT. I pay say $16,000 a year in interest, then 3,500 in prop taxes, 19.5k, but i get 11k now as a std deduction, so it’s really just 8.5k more, so 30% of 8.5k = 2500, which is less than the prop taxes i otherwise wouldnt have to pay. so NO TAX ADVANTAGE. why does everyone at work say I am getting a TAX BREAK?[/quote]
You probably won’t even come close to paying $16,000 in interest the first year or after the 6th year so you only have about a 5 year window there, I think the days of “getting” the tax break are from years of high interest/and or high home prices,looks like those days are behind us.moneymaker
Participant[quote=scaredycat]as I understand it, there is ZERO TAX BENEFIT. I pay say $16,000 a year in interest, then 3,500 in prop taxes, 19.5k, but i get 11k now as a std deduction, so it’s really just 8.5k more, so 30% of 8.5k = 2500, which is less than the prop taxes i otherwise wouldnt have to pay. so NO TAX ADVANTAGE. why does everyone at work say I am getting a TAX BREAK?[/quote]
You probably won’t even come close to paying $16,000 in interest the first year or after the 6th year so you only have about a 5 year window there, I think the days of “getting” the tax break are from years of high interest/and or high home prices,looks like those days are behind us.moneymaker
Participant[quote=scaredycat]as I understand it, there is ZERO TAX BENEFIT. I pay say $16,000 a year in interest, then 3,500 in prop taxes, 19.5k, but i get 11k now as a std deduction, so it’s really just 8.5k more, so 30% of 8.5k = 2500, which is less than the prop taxes i otherwise wouldnt have to pay. so NO TAX ADVANTAGE. why does everyone at work say I am getting a TAX BREAK?[/quote]
You probably won’t even come close to paying $16,000 in interest the first year or after the 6th year so you only have about a 5 year window there, I think the days of “getting” the tax break are from years of high interest/and or high home prices,looks like those days are behind us.moneymaker
Participant[quote=scaredycat]as I understand it, there is ZERO TAX BENEFIT. I pay say $16,000 a year in interest, then 3,500 in prop taxes, 19.5k, but i get 11k now as a std deduction, so it’s really just 8.5k more, so 30% of 8.5k = 2500, which is less than the prop taxes i otherwise wouldnt have to pay. so NO TAX ADVANTAGE. why does everyone at work say I am getting a TAX BREAK?[/quote]
You probably won’t even come close to paying $16,000 in interest the first year or after the 6th year so you only have about a 5 year window there, I think the days of “getting” the tax break are from years of high interest/and or high home prices,looks like those days are behind us.moneymaker
ParticipantJust curious what part of town you are buying in, Ramona? Jamul? Sounds pretty cheap to me and I would say go for it. It’s a no brainer if you can live cheaper than rent and get land to boot. Do have it thoroughly inspected though cause no matter how good it looks invariably there will be some issues and knowing what those are beforehand is a good idea. We were lucky in that we got what my wife considered her dream house at the time. I asked her the other day though that if we came into a large inheritance/lottery winnings if she would want to stay here or buy something bigger, without hesitation she said buy something bigger. I’m happy where we are.
moneymaker
ParticipantJust curious what part of town you are buying in, Ramona? Jamul? Sounds pretty cheap to me and I would say go for it. It’s a no brainer if you can live cheaper than rent and get land to boot. Do have it thoroughly inspected though cause no matter how good it looks invariably there will be some issues and knowing what those are beforehand is a good idea. We were lucky in that we got what my wife considered her dream house at the time. I asked her the other day though that if we came into a large inheritance/lottery winnings if she would want to stay here or buy something bigger, without hesitation she said buy something bigger. I’m happy where we are.
moneymaker
ParticipantJust curious what part of town you are buying in, Ramona? Jamul? Sounds pretty cheap to me and I would say go for it. It’s a no brainer if you can live cheaper than rent and get land to boot. Do have it thoroughly inspected though cause no matter how good it looks invariably there will be some issues and knowing what those are beforehand is a good idea. We were lucky in that we got what my wife considered her dream house at the time. I asked her the other day though that if we came into a large inheritance/lottery winnings if she would want to stay here or buy something bigger, without hesitation she said buy something bigger. I’m happy where we are.
moneymaker
ParticipantJust curious what part of town you are buying in, Ramona? Jamul? Sounds pretty cheap to me and I would say go for it. It’s a no brainer if you can live cheaper than rent and get land to boot. Do have it thoroughly inspected though cause no matter how good it looks invariably there will be some issues and knowing what those are beforehand is a good idea. We were lucky in that we got what my wife considered her dream house at the time. I asked her the other day though that if we came into a large inheritance/lottery winnings if she would want to stay here or buy something bigger, without hesitation she said buy something bigger. I’m happy where we are.
moneymaker
ParticipantJust curious what part of town you are buying in, Ramona? Jamul? Sounds pretty cheap to me and I would say go for it. It’s a no brainer if you can live cheaper than rent and get land to boot. Do have it thoroughly inspected though cause no matter how good it looks invariably there will be some issues and knowing what those are beforehand is a good idea. We were lucky in that we got what my wife considered her dream house at the time. I asked her the other day though that if we came into a large inheritance/lottery winnings if she would want to stay here or buy something bigger, without hesitation she said buy something bigger. I’m happy where we are.
moneymaker
ParticipantIt’s a tough call for anybody in the situation, Glad I’m not, will say it is luck more than anything though as I too was “stupid” enough to make more than a few offers on those over priced houses, lucky for me someone was always more fool hardy. I would say “love it or leave it”. It must suck when the new person on the block is paying a mortgage that is half of what you are paying. I’m not the most financially savvy person but I’m learning.
moneymaker
ParticipantIt’s a tough call for anybody in the situation, Glad I’m not, will say it is luck more than anything though as I too was “stupid” enough to make more than a few offers on those over priced houses, lucky for me someone was always more fool hardy. I would say “love it or leave it”. It must suck when the new person on the block is paying a mortgage that is half of what you are paying. I’m not the most financially savvy person but I’m learning.
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