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Raybyrnes
ParticipantA lot of these companies have insulated themselves with credit derivitives. Markets implodes these products protect them form the downside. It hurts profitability but provides stability.
ParticipantA more pragmatic solution would be to simply ask that they remove you from their internal list. It is usually far more effective than threats and far less tie consuming.
ParticipantWhat about the guy who has the cash and credit to buy and then has 2 or 3 rommates taht are offsetting the cost of his mortgage. He owns the place, gets the deduction, he lkives wih his friends who benefit form the back yard etc.
There is also a fairly sizable gay populationliving in the San diego area. Most of these guys don’t ahve to worry about 529 plans or diapers.
Thete are also many retired military. These guys have a government pension coming in , mahy have a managemnet position and some have a working spouse. They are not concerned about the ups and down of the market and can easily weather the volatility.
Is it forgatten that these people are out there aswell and make up a larger segment of the overall homeowners in San Diego than the mere speculators.
ParticipantMany would argue with an upcoming election interest rates will remain low. Low rates during these periods of interest rateresets will extend the time frames for owners and increase their liquidity. Additionally while many lenders are tightening standards others are now loosening them by extending 40 years terms.
ParticipantWHoever put this post together is wrong on the tax issue. You do pay income tax> I consolidated my student loans and got a rebate for doing so. Ity was accompanied by a year end 1099 as I expected. This would be not different. It is miscellaneous income. Just as ther is mortgage fraud ther is tax fraud aswell. If you get a rebate expect to pay tax. Be happy you are paying it becasue many people are not getting that wame rebate so you are way ahead of the game.
ParticipantBob2007,
My dad is a retired 15 -10 EPA. Has a life time stream of income so you might be in a similiar situation. Lot of posters here showing bias agains the annuities but I would give them some thought. WHile the expenses are high ther are some benefits to sonsider aswell.
1) You usually have a numbe of accounts inside the annuity you can chhose from. This allows you to avoid taxable gains and change funds as your risk changes.
2) You obviously feel like a hero if the market collapses and you have a 7% gaurantee
3) you might have some exeptional fund choices inside the anbnuity that have been closed off.This is not to say that I disagree with the other posters. Annuity have high expenses adn if you are a retired govt guy you should have the gauranted income comeing in from the government but you shoul,d always be aware of your option. For your specific siuation Who Knows?
Perhaps a more formidable question is whthe you take out a life insurance policy now and elect the full payout on the pension or if you take the reduced payout and and cover your spouse. My father might have reconsidered his option to reduce the payout in hindsight,
ParticipantBubbleNinja,
Obviously everyone is working with incomplete information but I would say the idea of increasing my rent to get use to the payments is out. If you are renting continue to ave so you ahve more for the Downpayment. As for tapping the 401K, clearly a mistake. Pay the PMI which is now dedeuctible let the 401K ride, consider reducing contribution to the company match, and wait to build some equity on the home. Once you have the equity reappraise and drop the PMI. I have been though SEH. They did a very nice job with the community. Lot more building to take place so supply and demand might keep prices form appreciating.
As all other sposters noted, consider the single family home in areas outside the Mello Roos zone. Clearly you lose the luster of that new community prestige but the 300 a month you save will make it feel worth while. You can think of that additional 300 that you put into the Roth or 401Z as a blessing in the long run.
ParticipantCoast to Coast. Friend is a Managing Director for a Century 21 overseeeing 200 agents in the New York Area. She said that November and December were very slow but January has been an extremely busy month. She is working in the Long Island area wwith home values ranging from 500 K to 3 million+. Could be a dead cat bounce but very interesting to hear this is happing on the coasts.
ParticipantI take a completely different approach. I have always been very responsible with my credit and this has provided me with0% credit card 5% car loans etc and I loan up on debt as long as the banks and lending institution are willing to dole it out. I have used the proceeds of their money and stuck it into a MMA accout that pays better than 5%. On 20K of debt I earn over a 1000 a year by being the bank. While I can appreciate that some miught feel having no debt is comforting to me it is costly when I can put my moeny to work while at the same time increasing my liquidity.
With respect to paying off smaller bills first I might suggest you would be better off to simply line up your debts from highest interest rate to lowest interest rate and make maximum payment on the highest debts and work you way down hill. This would be a far better alternative to paying doiwn debt.
ParticipantVery good material. I have actually considered paying a year of rent upfront for a discount. Makes me seriouslly reconsider that as a viable option. Thanks for the heads up.
ParticipantBuyside realty
redfin.com
CostcoAll three offer rebates. Enough of the conspiracy theory mortgage fraud. These are all legitimate services. If the buyer has done all the legwork and the seller is going to fork over a selling commission, the realator should cut a check to the buyer. If on the other hand a realator has driven you around for a couple of months and identified the perfect property, you would be a real piece of junk to try and cut this person out of their commission or try haggling after the fact about splitting a commission.
ParticipantEven if you had the down payment you might be better off doing 100% financing and investing the cash. If you are forced to pay PMI or have a high second the down payment makes sense when you are paying over 8% on the second. Otherwise I think you are best to keep the cash working for you. Right now if you put money into and HSBC online account you will get 6%. Bottom line liquidity is key and cash gives that to you. My father is a governmetn guy. Was a 15-10 when he finished and he never missed a baseball, basketball or football game. If you are 5 minutes to work and that work is not going to relocate you I would start thinking about owning. I can tell you that depreciation is uncertain but taxes are guaranteed. Besides the Stock Market is at an all time high so we might see correction in the market in the not too distant future.
ParticipantI thougth the builder did a decent job wiht the units but the price is far too high and the location would have been better suited for a placement of low income housing as opposed to 540K units.
January 31, 2007 at 6:14 PM in reply to: 1st Time Home buyer w/o a mortgage. Considering paying cash. #44559ParticipantI would be careful with your words with respect to raping you. You might consider the fact that it is the same system that is providing the opportunities that you have. Go live in a country like Brzil and Ruissia and then start complaining about taxes. Unitl then thank you lucky stars that you re able to make what you make and pay what you pay in taxes.
I’ll make a bet that I pay as much as any person on this board in taxes and while it might be distasteful I tend to go to sleep at night thanking God for providing well for me and my family. I tend to find it distasteful to use words like rape when it comes to paying your fair share.
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