[temeculaguy]

Turbo tax! The problem with asking what percentage of a new house will be returned to you via tax refund has too many variables. Dependents, other deductions, and ever increasing amount of taxes that you cant develop a formula because taxes gradually increase and certain income levels phase out deductions. Your filing status alone will swing it wildly. Tomorrows state budget vote will change it as well, so will next years.

Here is my simple way to figure it out:

The tax deduction will be equal to the taxes, insurance and maintenance. So figure if you can afford the principal and interest on your current take home pay and the deduction will cover the other three assuming they are normal.

BTW, 450k on 100k income is not affordable unless you put 150k+ down. Never borrow more than 3x your gross.

Don’t let tax benefits cause you to overwhelm yourself with debt, paying $3 to the bank to avoid paying $1 to the government wont make you rich, you will be out $2.

[temeculaguy]

Turbo tax! The problem with asking what percentage of a new house will be returned to you via tax refund has too many variables. Dependents, other deductions, and ever increasing amount of taxes that you cant develop a formula because taxes gradually increase and certain income levels phase out deductions. Your filing status alone will swing it wildly. Tomorrows state budget vote will change it as well, so will next years.

Here is my simple way to figure it out:

The tax deduction will be equal to the taxes, insurance and maintenance. So figure if you can afford the principal and interest on your current take home pay and the deduction will cover the other three assuming they are normal.

BTW, 450k on 100k income is not affordable unless you put 150k+ down. Never borrow more than 3x your gross.

Don’t let tax benefits cause you to overwhelm yourself with debt, paying $3 to the bank to avoid paying $1 to the government wont make you rich, you will be out $2.

[temeculaguy]

Turbo tax! The problem with asking what percentage of a new house will be returned to you via tax refund has too many variables. Dependents, other deductions, and ever increasing amount of taxes that you cant develop a formula because taxes gradually increase and certain income levels phase out deductions. Your filing status alone will swing it wildly. Tomorrows state budget vote will change it as well, so will next years.

Here is my simple way to figure it out:

The tax deduction will be equal to the taxes, insurance and maintenance. So figure if you can afford the principal and interest on your current take home pay and the deduction will cover the other three assuming they are normal.

BTW, 450k on 100k income is not affordable unless you put 150k+ down. Never borrow more than 3x your gross.

Don’t let tax benefits cause you to overwhelm yourself with debt, paying $3 to the bank to avoid paying $1 to the government wont make you rich, you will be out $2.

[temeculaguy]

Turbo tax! The problem with asking what percentage of a new house will be returned to you via tax refund has too many variables. Dependents, other deductions, and ever increasing amount of taxes that you cant develop a formula because taxes gradually increase and certain income levels phase out deductions. Your filing status alone will swing it wildly. Tomorrows state budget vote will change it as well, so will next years.

Here is my simple way to figure it out:

The tax deduction will be equal to the taxes, insurance and maintenance. So figure if you can afford the principal and interest on your current take home pay and the deduction will cover the other three assuming they are normal.

BTW, 450k on 100k income is not affordable unless you put 150k+ down. Never borrow more than 3x your gross.

Don’t let tax benefits cause you to overwhelm yourself with debt, paying $3 to the bank to avoid paying $1 to the government wont make you rich, you will be out $2.

[temeculaguy]

Damn IRS, they take the fun out of everything. I can’t comment on Abbot, don’t know anyone that works there. It’s changed names and hands at least three times while I’ve been here and it always seems to chug along or expand. The stuff they make (stints, shunts, fake hearts, medical stuff) isn’t as “optional” as say “motorhomes.” But I imagine like any business, times aren’t good.

A six year old house has at least 4 years before some things crap out, probably longer. The pool is another story, after ten years the equipment is borrowing time. Pools are not great things in rentals because neglect can be a big deal, best to have a pool guy and include it in the rent. It wont be easy and there will be expenses (deductible though). All I am saying is that when I’ve faced this decision in the past I’ve regretted every one I walked away from when it was close to nuetral. I like your location adjacent to harveston and of course I think the valley will be fine, be a tough two years but it will be fine, too many things on it’s side. Right now if you have a property that doesn’t have a high carry cost and you can weather the storm, don’t buy high and sell low unless you have to. In your situation, you may have to. In paramounts, he doesnt have to, you only lose if you sell. His situation is much more similar to my last one, where I wanted a bigger pad in a better neighborhood and could afford one since the prices were down but the current pad was upside down however it would have been rent nuetral. I could be totally wrong and houses might be worth five dollars, rent may be free, but I’ve danced this dance, I’ve kissed this girl and every time I’ve dumped a property in this valley where the carry cost was about the same as rent I’ve lived to regret it. Yes it’s different this time, blah blah, it was different last time and the time before that. You know what, now that I recall, on my last no profit dump, my dad begged me to keep it as a rental, offered to buy half of it or all of it, said he would cover any rent losses and I still refused. I wanted to be free of it, the news was all bad, values declined faster than I could keep up with and rent signs always said 1st month free. Why would I increase my stake in this depreciating investment class when anyone in their right mind would run and hide. I pussed out, I failed to learn from those who had seen more cycles than I and today I have one place that I have very little equity in and he owns a handful outright. Why is it that from age 16 to 35 we refuse to listen to our parents and every day after that we wish we had.

Now where’s that door again!

[temeculaguy]

Damn IRS, they take the fun out of everything. I can’t comment on Abbot, don’t know anyone that works there. It’s changed names and hands at least three times while I’ve been here and it always seems to chug along or expand. The stuff they make (stints, shunts, fake hearts, medical stuff) isn’t as “optional” as say “motorhomes.” But I imagine like any business, times aren’t good.

A six year old house has at least 4 years before some things crap out, probably longer. The pool is another story, after ten years the equipment is borrowing time. Pools are not great things in rentals because neglect can be a big deal, best to have a pool guy and include it in the rent. It wont be easy and there will be expenses (deductible though). All I am saying is that when I’ve faced this decision in the past I’ve regretted every one I walked away from when it was close to nuetral. I like your location adjacent to harveston and of course I think the valley will be fine, be a tough two years but it will be fine, too many things on it’s side. Right now if you have a property that doesn’t have a high carry cost and you can weather the storm, don’t buy high and sell low unless you have to. In your situation, you may have to. In paramounts, he doesnt have to, you only lose if you sell. His situation is much more similar to my last one, where I wanted a bigger pad in a better neighborhood and could afford one since the prices were down but the current pad was upside down however it would have been rent nuetral. I could be totally wrong and houses might be worth five dollars, rent may be free, but I’ve danced this dance, I’ve kissed this girl and every time I’ve dumped a property in this valley where the carry cost was about the same as rent I’ve lived to regret it. Yes it’s different this time, blah blah, it was different last time and the time before that. You know what, now that I recall, on my last no profit dump, my dad begged me to keep it as a rental, offered to buy half of it or all of it, said he would cover any rent losses and I still refused. I wanted to be free of it, the news was all bad, values declined faster than I could keep up with and rent signs always said 1st month free. Why would I increase my stake in this depreciating investment class when anyone in their right mind would run and hide. I pussed out, I failed to learn from those who had seen more cycles than I and today I have one place that I have very little equity in and he owns a handful outright. Why is it that from age 16 to 35 we refuse to listen to our parents and every day after that we wish we had.

Now where’s that door again!

[temeculaguy]

Damn IRS, they take the fun out of everything. I can’t comment on Abbot, don’t know anyone that works there. It’s changed names and hands at least three times while I’ve been here and it always seems to chug along or expand. The stuff they make (stints, shunts, fake hearts, medical stuff) isn’t as “optional” as say “motorhomes.” But I imagine like any business, times aren’t good.

A six year old house has at least 4 years before some things crap out, probably longer. The pool is another story, after ten years the equipment is borrowing time. Pools are not great things in rentals because neglect can be a big deal, best to have a pool guy and include it in the rent. It wont be easy and there will be expenses (deductible though). All I am saying is that when I’ve faced this decision in the past I’ve regretted every one I walked away from when it was close to nuetral. I like your location adjacent to harveston and of course I think the valley will be fine, be a tough two years but it will be fine, too many things on it’s side. Right now if you have a property that doesn’t have a high carry cost and you can weather the storm, don’t buy high and sell low unless you have to. In your situation, you may have to. In paramounts, he doesnt have to, you only lose if you sell. His situation is much more similar to my last one, where I wanted a bigger pad in a better neighborhood and could afford one since the prices were down but the current pad was upside down however it would have been rent nuetral. I could be totally wrong and houses might be worth five dollars, rent may be free, but I’ve danced this dance, I’ve kissed this girl and every time I’ve dumped a property in this valley where the carry cost was about the same as rent I’ve lived to regret it. Yes it’s different this time, blah blah, it was different last time and the time before that. You know what, now that I recall, on my last no profit dump, my dad begged me to keep it as a rental, offered to buy half of it or all of it, said he would cover any rent losses and I still refused. I wanted to be free of it, the news was all bad, values declined faster than I could keep up with and rent signs always said 1st month free. Why would I increase my stake in this depreciating investment class when anyone in their right mind would run and hide. I pussed out, I failed to learn from those who had seen more cycles than I and today I have one place that I have very little equity in and he owns a handful outright. Why is it that from age 16 to 35 we refuse to listen to our parents and every day after that we wish we had.

Now where’s that door again!

[temeculaguy]

Damn IRS, they take the fun out of everything. I can’t comment on Abbot, don’t know anyone that works there. It’s changed names and hands at least three times while I’ve been here and it always seems to chug along or expand. The stuff they make (stints, shunts, fake hearts, medical stuff) isn’t as “optional” as say “motorhomes.” But I imagine like any business, times aren’t good.

A six year old house has at least 4 years before some things crap out, probably longer. The pool is another story, after ten years the equipment is borrowing time. Pools are not great things in rentals because neglect can be a big deal, best to have a pool guy and include it in the rent. It wont be easy and there will be expenses (deductible though). All I am saying is that when I’ve faced this decision in the past I’ve regretted every one I walked away from when it was close to nuetral. I like your location adjacent to harveston and of course I think the valley will be fine, be a tough two years but it will be fine, too many things on it’s side. Right now if you have a property that doesn’t have a high carry cost and you can weather the storm, don’t buy high and sell low unless you have to. In your situation, you may have to. In paramounts, he doesnt have to, you only lose if you sell. His situation is much more similar to my last one, where I wanted a bigger pad in a better neighborhood and could afford one since the prices were down but the current pad was upside down however it would have been rent nuetral. I could be totally wrong and houses might be worth five dollars, rent may be free, but I’ve danced this dance, I’ve kissed this girl and every time I’ve dumped a property in this valley where the carry cost was about the same as rent I’ve lived to regret it. Yes it’s different this time, blah blah, it was different last time and the time before that. You know what, now that I recall, on my last no profit dump, my dad begged me to keep it as a rental, offered to buy half of it or all of it, said he would cover any rent losses and I still refused. I wanted to be free of it, the news was all bad, values declined faster than I could keep up with and rent signs always said 1st month free. Why would I increase my stake in this depreciating investment class when anyone in their right mind would run and hide. I pussed out, I failed to learn from those who had seen more cycles than I and today I have one place that I have very little equity in and he owns a handful outright. Why is it that from age 16 to 35 we refuse to listen to our parents and every day after that we wish we had.

Now where’s that door again!

[temeculaguy]

Damn IRS, they take the fun out of everything. I can’t comment on Abbot, don’t know anyone that works there. It’s changed names and hands at least three times while I’ve been here and it always seems to chug along or expand. The stuff they make (stints, shunts, fake hearts, medical stuff) isn’t as “optional” as say “motorhomes.” But I imagine like any business, times aren’t good.

A six year old house has at least 4 years before some things crap out, probably longer. The pool is another story, after ten years the equipment is borrowing time. Pools are not great things in rentals because neglect can be a big deal, best to have a pool guy and include it in the rent. It wont be easy and there will be expenses (deductible though). All I am saying is that when I’ve faced this decision in the past I’ve regretted every one I walked away from when it was close to nuetral. I like your location adjacent to harveston and of course I think the valley will be fine, be a tough two years but it will be fine, too many things on it’s side. Right now if you have a property that doesn’t have a high carry cost and you can weather the storm, don’t buy high and sell low unless you have to. In your situation, you may have to. In paramounts, he doesnt have to, you only lose if you sell. His situation is much more similar to my last one, where I wanted a bigger pad in a better neighborhood and could afford one since the prices were down but the current pad was upside down however it would have been rent nuetral. I could be totally wrong and houses might be worth five dollars, rent may be free, but I’ve danced this dance, I’ve kissed this girl and every time I’ve dumped a property in this valley where the carry cost was about the same as rent I’ve lived to regret it. Yes it’s different this time, blah blah, it was different last time and the time before that. You know what, now that I recall, on my last no profit dump, my dad begged me to keep it as a rental, offered to buy half of it or all of it, said he would cover any rent losses and I still refused. I wanted to be free of it, the news was all bad, values declined faster than I could keep up with and rent signs always said 1st month free. Why would I increase my stake in this depreciating investment class when anyone in their right mind would run and hide. I pussed out, I failed to learn from those who had seen more cycles than I and today I have one place that I have very little equity in and he owns a handful outright. Why is it that from age 16 to 35 we refuse to listen to our parents and every day after that we wish we had.

Now where’s that door again!

[temeculaguy]

The rest of the financial picture would be helpful but I understand it’s your life and you probably don’t want to publish it. If a few hundred a month wont kill you, i’d rent it out as long as you can qualify for another purchase if/when you decide to buy. There are a number of families who bought at peak and have lost their home but want to stay and rent, it is a 150x rent multiplier, while there are better deals to be had in some condos or smaller homes as far as the multiplier goes, yours doesn’t need any work and has some appealing features. Those people who lost their 600k no down toxic loan specials didn’t all vanish. They can afford 2k, they just couldn’t cut it when it jumped to 5k and they cant buy for a few years. If you can afford it and you think it is near bottom, place your bet and wait and see. I sold a property about a mile from you in 1997 and did exactly what you did, walked away with about nothing, lost my down and upgrades but I couldn’t handle the fear of the unknown. My mortgage was close to what the rent would have been but I was fearful of qualifying for the next one and dealing with months without a renter. Eleven years have passed, I would have been cash positive about $500 a month for the last 8 years and could have sold at a profit anywhere between 50k and 350k in that time, I’m still kinda mad at myself for being a wuss. What is worse is that it would have been paid off by now, I’m an idiot, you don’t have to be one. Excuse me, I’m still kinda reeling from the realization that it would have been paid off already, I hadn’t thought about it for a while. That would be about 1500 free money a month, dammit!! I need to go find a nice solid door to bang my head into.

[temeculaguy]

The rest of the financial picture would be helpful but I understand it’s your life and you probably don’t want to publish it. If a few hundred a month wont kill you, i’d rent it out as long as you can qualify for another purchase if/when you decide to buy. There are a number of families who bought at peak and have lost their home but want to stay and rent, it is a 150x rent multiplier, while there are better deals to be had in some condos or smaller homes as far as the multiplier goes, yours doesn’t need any work and has some appealing features. Those people who lost their 600k no down toxic loan specials didn’t all vanish. They can afford 2k, they just couldn’t cut it when it jumped to 5k and they cant buy for a few years. If you can afford it and you think it is near bottom, place your bet and wait and see. I sold a property about a mile from you in 1997 and did exactly what you did, walked away with about nothing, lost my down and upgrades but I couldn’t handle the fear of the unknown. My mortgage was close to what the rent would have been but I was fearful of qualifying for the next one and dealing with months without a renter. Eleven years have passed, I would have been cash positive about $500 a month for the last 8 years and could have sold at a profit anywhere between 50k and 350k in that time, I’m still kinda mad at myself for being a wuss. What is worse is that it would have been paid off by now, I’m an idiot, you don’t have to be one. Excuse me, I’m still kinda reeling from the realization that it would have been paid off already, I hadn’t thought about it for a while. That would be about 1500 free money a month, dammit!! I need to go find a nice solid door to bang my head into.

[temeculaguy]

The rest of the financial picture would be helpful but I understand it’s your life and you probably don’t want to publish it. If a few hundred a month wont kill you, i’d rent it out as long as you can qualify for another purchase if/when you decide to buy. There are a number of families who bought at peak and have lost their home but want to stay and rent, it is a 150x rent multiplier, while there are better deals to be had in some condos or smaller homes as far as the multiplier goes, yours doesn’t need any work and has some appealing features. Those people who lost their 600k no down toxic loan specials didn’t all vanish. They can afford 2k, they just couldn’t cut it when it jumped to 5k and they cant buy for a few years. If you can afford it and you think it is near bottom, place your bet and wait and see. I sold a property about a mile from you in 1997 and did exactly what you did, walked away with about nothing, lost my down and upgrades but I couldn’t handle the fear of the unknown. My mortgage was close to what the rent would have been but I was fearful of qualifying for the next one and dealing with months without a renter. Eleven years have passed, I would have been cash positive about $500 a month for the last 8 years and could have sold at a profit anywhere between 50k and 350k in that time, I’m still kinda mad at myself for being a wuss. What is worse is that it would have been paid off by now, I’m an idiot, you don’t have to be one. Excuse me, I’m still kinda reeling from the realization that it would have been paid off already, I hadn’t thought about it for a while. That would be about 1500 free money a month, dammit!! I need to go find a nice solid door to bang my head into.

[temeculaguy]

The rest of the financial picture would be helpful but I understand it’s your life and you probably don’t want to publish it. If a few hundred a month wont kill you, i’d rent it out as long as you can qualify for another purchase if/when you decide to buy. There are a number of families who bought at peak and have lost their home but want to stay and rent, it is a 150x rent multiplier, while there are better deals to be had in some condos or smaller homes as far as the multiplier goes, yours doesn’t need any work and has some appealing features. Those people who lost their 600k no down toxic loan specials didn’t all vanish. They can afford 2k, they just couldn’t cut it when it jumped to 5k and they cant buy for a few years. If you can afford it and you think it is near bottom, place your bet and wait and see. I sold a property about a mile from you in 1997 and did exactly what you did, walked away with about nothing, lost my down and upgrades but I couldn’t handle the fear of the unknown. My mortgage was close to what the rent would have been but I was fearful of qualifying for the next one and dealing with months without a renter. Eleven years have passed, I would have been cash positive about $500 a month for the last 8 years and could have sold at a profit anywhere between 50k and 350k in that time, I’m still kinda mad at myself for being a wuss. What is worse is that it would have been paid off by now, I’m an idiot, you don’t have to be one. Excuse me, I’m still kinda reeling from the realization that it would have been paid off already, I hadn’t thought about it for a while. That would be about 1500 free money a month, dammit!! I need to go find a nice solid door to bang my head into.

[temeculaguy]

The rest of the financial picture would be helpful but I understand it’s your life and you probably don’t want to publish it. If a few hundred a month wont kill you, i’d rent it out as long as you can qualify for another purchase if/when you decide to buy. There are a number of families who bought at peak and have lost their home but want to stay and rent, it is a 150x rent multiplier, while there are better deals to be had in some condos or smaller homes as far as the multiplier goes, yours doesn’t need any work and has some appealing features. Those people who lost their 600k no down toxic loan specials didn’t all vanish. They can afford 2k, they just couldn’t cut it when it jumped to 5k and they cant buy for a few years. If you can afford it and you think it is near bottom, place your bet and wait and see. I sold a property about a mile from you in 1997 and did exactly what you did, walked away with about nothing, lost my down and upgrades but I couldn’t handle the fear of the unknown. My mortgage was close to what the rent would have been but I was fearful of qualifying for the next one and dealing with months without a renter. Eleven years have passed, I would have been cash positive about $500 a month for the last 8 years and could have sold at a profit anywhere between 50k and 350k in that time, I’m still kinda mad at myself for being a wuss. What is worse is that it would have been paid off by now, I’m an idiot, you don’t have to be one. Excuse me, I’m still kinda reeling from the realization that it would have been paid off already, I hadn’t thought about it for a while. That would be about 1500 free money a month, dammit!! I need to go find a nice solid door to bang my head into.

[temeculaguy]

[quote=ralphfurley]How’s this? A new high price per sq ft. Can anyone beat this?

http://www.redfin.com/CA/Murrieta/39781-Sunrose-Dr-92562/home/6210577

“Agents please submit your BEST and FINAL because we almost always have mulitple offers due to the Bank’s special pricing.”

Good luck with ALL that…[/quote]

I don’t know Ralph, I don’ think it’s insanely priced. Price per sq ft isn’t the best measure because of small houses like that one. It’s a 1080 sq ft one story single family residence in what looks like decent shape for 165k. It is kinda condo sized but you can walk to stores and work, it’s close to the freeway and a single person with about 55k income can afford it and you can have a dog. There are a lot of people who have a dog, want a yard but have a condo budget. It’s 2003 price was 216k, so it’s near 2001 pricing and not far from early 1990’s pricing. Those little places that are one step up from condos have buyers, probably rents for 1200-1300, so 165k is fair using any metric, I bet they do have offers.

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