[Raybyrnes]

I have spoken iwth a number of friends who work at many of the larger banks they are seeing many more people walking into a branch on the 16th of the month with Credit Card Cash advances to make their payments. People are beginning to go to the well for the monthly payment.

[Raybyrnes]

I have spoken iwth a number of friends who work at many of the larger banks they are seeing many more people walking into a branch on the 16th of the month with Credit Card Cash advances to make their payments. People are beginning to go to the well for the monthly payment.

[Raybyrnes]

sdrealtor

I am not in property management so you might be right that it is easier to rent a 2 bedroom than a 1 bedoom but that has not been the case im my complex. The 2 bedrooms ended up being vacant for 3 months whereas the 1 bedroooms that became vacant rented in a month. I czn recognise that there is a certain amount of seasonality here by the beach.

But the real question I am assking is why doesn’t pricing adjust to great tennants vs marginal tennants? They have credit scoring systems for pricing debt, why wouldn’t someone create a rental index to better price rents. I feel I am subsidizing the deadbeats by paying higher rent than I would normally have to pay. I will make a bet taht rents are hundred billions in rent payments flowign through our ecomonic system.

[Raybyrnes]

sdrealtor

I am not in property management so you might be right that it is easier to rent a 2 bedroom than a 1 bedoom but that has not been the case im my complex. The 2 bedrooms ended up being vacant for 3 months whereas the 1 bedroooms that became vacant rented in a month. I czn recognise that there is a certain amount of seasonality here by the beach.

But the real question I am assking is why doesn’t pricing adjust to great tennants vs marginal tennants? They have credit scoring systems for pricing debt, why wouldn’t someone create a rental index to better price rents. I feel I am subsidizing the deadbeats by paying higher rent than I would normally have to pay. I will make a bet taht rents are hundred billions in rent payments flowign through our ecomonic system.

[Raybyrnes]

I have been in a 1 bedroom for close to 5 years in the Crown Point area and have not seen any rent increases. I mentioned to my landlord that I might be interested in a 2 bedroom for $1250 a month becuase she had 2 that became vacant. She shrugged me off and said she would have them rented. She ended up sitting on idle inventory for over 3 months. Can someone who works in property mnagement post a reason why all renters are served up the same prices. If banks and lenders are willing to acept lower interest rate for better credit and charge extra premiums for poor credit why would rent be any different.

Had my landlord rented the 2 bedroom to me the second she knew I was interested she would have immediately started collecting the additional premium relative to what I currently pay (900) and would have bought herself time to change carpets, paint and clean my place up. Additionally whe would have had easier inventory to move because she could have advertised both a 1 a 2 bedroom unit. Am I missing something.

[Raybyrnes]

I have been in a 1 bedroom for close to 5 years in the Crown Point area and have not seen any rent increases. I mentioned to my landlord that I might be interested in a 2 bedroom for $1250 a month becuase she had 2 that became vacant. She shrugged me off and said she would have them rented. She ended up sitting on idle inventory for over 3 months. Can someone who works in property mnagement post a reason why all renters are served up the same prices. If banks and lenders are willing to acept lower interest rate for better credit and charge extra premiums for poor credit why would rent be any different.

Had my landlord rented the 2 bedroom to me the second she knew I was interested she would have immediately started collecting the additional premium relative to what I currently pay (900) and would have bought herself time to change carpets, paint and clean my place up. Additionally whe would have had easier inventory to move because she could have advertised both a 1 a 2 bedroom unit. Am I missing something.

[Raybyrnes]

The roommate option was brought up but another option might be to take in foreign exchange students. I have friends who get paid 1000 a month for taking 2 students over the summer and 700 a month for 1 student during the school year. If he has a 3 or 4 bedroom place this might provide some additional cash flow to get through the down cycle. The students are usually off traveling and are responsible for their own food. Drastic time call for drastic measures.

[Raybyrnes]

The roommate option was brought up but another option might be to take in foreign exchange students. I have friends who get paid 1000 a month for taking 2 students over the summer and 700 a month for 1 student during the school year. If he has a 3 or 4 bedroom place this might provide some additional cash flow to get through the down cycle. The students are usually off traveling and are responsible for their own food. Drastic time call for drastic measures.

[Raybyrnes]

Could PMI buy him needed time to try and unload the property.

[Raybyrnes]

Could PMI buy him needed time to try and unload the property.

[Raybyrnes]

As stated by other posters your expenses seem high.
For groceries the Sunday paper coupon section provides savings of over 150 a week in coupons for 15 to 20 minutes of readiing time.

For your car insurance you may wnat to check out Wawanesa if you and your wife have good driving records. I pay less than 1000 a year for 2 automobiles with comp and collision and 100/300/100 limmitis of liability.

The 600$ student loan payment makes sense if they were private student loans but if they wer the Federal Stafford loasn you made a mistake not consolidating the loasn and making the minimum payment you could coming out of school. That would have reduce your payment on 35K were of debt down to around 150 amonth. You could have easily earned more than 3% that the governemtn charges and withy your incomes you still qualify for the tax deducion.

100 a month on life insurance seems high for a young guy. Look into a term policy for yourself and your wife. Should save you 50$ a month.

I am Catholic so I am unfamilial with a tithe. Sounds like it is charity so unlike other posters I ahve a hard time saying that you will not benefit from the good you do fof otheres.

[Raybyrnes]

As stated by other posters your expenses seem high.
For groceries the Sunday paper coupon section provides savings of over 150 a week in coupons for 15 to 20 minutes of readiing time.

For your car insurance you may wnat to check out Wawanesa if you and your wife have good driving records. I pay less than 1000 a year for 2 automobiles with comp and collision and 100/300/100 limmitis of liability.

The 600$ student loan payment makes sense if they were private student loans but if they wer the Federal Stafford loasn you made a mistake not consolidating the loasn and making the minimum payment you could coming out of school. That would have reduce your payment on 35K were of debt down to around 150 amonth. You could have easily earned more than 3% that the governemtn charges and withy your incomes you still qualify for the tax deducion.

100 a month on life insurance seems high for a young guy. Look into a term policy for yourself and your wife. Should save you 50$ a month.

I am Catholic so I am unfamilial with a tithe. Sounds like it is charity so unlike other posters I ahve a hard time saying that you will not benefit from the good you do fof otheres.

[Raybyrnes]

sdceller

I will acknowledge that there are people who do stupid things. When they can afford a $400 payment they lease a BMW instead of Buying a Honda Accord. Same is true of housing. Got to keep up iwht the Jones. But when used effectively the math seems to pan out OK. I am not going to say it is for everyone but anyone who can handle a 30 year conforming mortgage should look at both products and ask themselves if they might not be better off investing that difference. For many people they would frown if you offered them 5% on and investment yet they would throw money at a loan and try to prepay it back. Just doewsn’t seem consistant. If on the other hand you feel snake bitten by the market and have elected to go with CD and Govt Bond then I would say the 30 year conforming makes sense and would even advocate that a lender provide a 15 year amotrtization schedule so that you can set your sights on making those monthly payments. Just my read on finance decisions.

[Raybyrnes]

sdceller

I will acknowledge that there are people who do stupid things. When they can afford a $400 payment they lease a BMW instead of Buying a Honda Accord. Same is true of housing. Got to keep up iwht the Jones. But when used effectively the math seems to pan out OK. I am not going to say it is for everyone but anyone who can handle a 30 year conforming mortgage should look at both products and ask themselves if they might not be better off investing that difference. For many people they would frown if you offered them 5% on and investment yet they would throw money at a loan and try to prepay it back. Just doewsn’t seem consistant. If on the other hand you feel snake bitten by the market and have elected to go with CD and Govt Bond then I would say the 30 year conforming makes sense and would even advocate that a lender provide a 15 year amotrtization schedule so that you can set your sights on making those monthly payments. Just my read on finance decisions.

[Raybyrnes]

I have an opinion on the matter but what do most people think the difference would be if you took a 10 year. Fixed rate, IO loan and just elected to make payments as if it were a 30 year fixed. Proviced you are not paying any additional cost for the option of doing this why wouldn’t you.

Now you need to ask yourself am I more comfortable with a guaranteed rate of return of 6% or do I feel I can invest the difference and earn a higher rate of return.

I tend to think the IO invest the difference makes sense for me. The same thing is true of life insurance, Buy term invest the diffence. Automatic investments into index mutual funds tend to eliminate teh time it would take without haeing this as an option

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