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sdduuuude
Participantesmith – exactly. That’s why 0 down is best. i.e. don’t buy it. Doesn’t make sense to want to preserve capital in case of bad times, yet buy a house that could be rented so inexpensively.
Participantesmith – exactly. That’s why 0 down is best. i.e. don’t buy it. Doesn’t make sense to want to preserve capital in case of bad times, yet buy a house that could be rented so inexpensively.
Participantesmith – exactly. That’s why 0 down is best. i.e. don’t buy it. Doesn’t make sense to want to preserve capital in case of bad times, yet buy a house that could be rented so inexpensively.
ParticipantDouble check that. Looks like PMI is deductable.
ParticipantDouble check that. Looks like PMI is deductable.
ParticipantDouble check that. Looks like PMI is deductable.
ParticipantDouble check that. Looks like PMI is deductable.
ParticipantDouble check that. Looks like PMI is deductable.
ParticipantRight-on, XBoxBoy. Great minds think alike.
PMI is going to cost $4K per year on a 800K house at 10% down. Putting another 80K down saves you 4K per year in after-tax expenditures.
That’s 5% AFTER TAX on the 80K. Who’s making that these days ?
ParticipantRight-on, XBoxBoy. Great minds think alike.
PMI is going to cost $4K per year on a 800K house at 10% down. Putting another 80K down saves you 4K per year in after-tax expenditures.
That’s 5% AFTER TAX on the 80K. Who’s making that these days ?
ParticipantRight-on, XBoxBoy. Great minds think alike.
PMI is going to cost $4K per year on a 800K house at 10% down. Putting another 80K down saves you 4K per year in after-tax expenditures.
That’s 5% AFTER TAX on the 80K. Who’s making that these days ?
ParticipantRight-on, XBoxBoy. Great minds think alike.
PMI is going to cost $4K per year on a 800K house at 10% down. Putting another 80K down saves you 4K per year in after-tax expenditures.
That’s 5% AFTER TAX on the 80K. Who’s making that these days ?
ParticipantRight-on, XBoxBoy. Great minds think alike.
PMI is going to cost $4K per year on a 800K house at 10% down. Putting another 80K down saves you 4K per year in after-tax expenditures.
That’s 5% AFTER TAX on the 80K. Who’s making that these days ?
ParticipantI think you are going to burn all your tax savings (from your wise financial choice of purchasing insted of renting a depreiciating asset) on PMI (which is a complete waste of money if you have a 20% down payment) and depreciation.
Assuming a purchase price of 800K and a loan of 720K at 6%, the payment is $4,316. Assuming ALL of that is interest and a 50% tax bracket, your tax savings is $2158 per month, or $25,900 per year. 25,9000 is 3.24% of the purchase price of 800K.
So, if the house depreciates by 3.25% or more, buying is not a wise financial decision. Add in the non-depreciable cost of PMI, adjust for the actual interest rate and tax bracket and you are barely there. Also, consider that you can put an extra $1K per month or so in the bank if you rent at $3300/month instead of make a mortgage payment of $4300 per month.
The point is not “never buy a house.”
The point is rent, don’t buy, a depreciating asset. -
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