Honestly...I am seriously considering selling my house for whatever I can get for it. It's getting to the point the taxes just aren't worth it...I could get a nice apartment for just what I pay in property taxes now. (It has almost tripled since 2010.)
Today was a good day. Payed off the house and car.
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Originally Posted By: Jarlaxle
Honestly...I am seriously considering selling my house for whatever I can get for it. It's getting to the point the taxes just aren't worth it...I could get a nice apartment for just what I pay in property taxes now. (It has almost tripled since 2010.)
Yeah, but will your landlord let you change your own oil/do other maintenance on your cars in the parking lot?
Seriously, that's actually the number one reason I would not live in an apartment or condo. I'm currently saving up to buy my first house, still living with Mom right now. (And she complains when I work on cars too! Ugh...)
Honestly...I am seriously considering selling my house for whatever I can get for it. It's getting to the point the taxes just aren't worth it...I could get a nice apartment for just what I pay in property taxes now. (It has almost tripled since 2010.)
Yeah, but will your landlord let you change your own oil/do other maintenance on your cars in the parking lot?
Seriously, that's actually the number one reason I would not live in an apartment or condo. I'm currently saving up to buy my first house, still living with Mom right now. (And she complains when I work on cars too! Ugh...)
Originally Posted By: Doog
Originally Posted By: FoxS
I don't mind debt when its tax efficient
I have investments with a fixed income that earn more than my mortgage costs.
In fact, its a 3 to 1 ratio, so say my mortgage is $300k, that means I only need $100k of investment that pays the mortgage cost.
So I would be silly to take $300k of savings and use it to pay a $300k mortgage when just $100k of savings is earning enough to pay the $300k mortgage.
Same thing with car loans. I had enough cash to buy my Mercedes but they were offering 1.99% interest.
So long as your dont live beyond your means, and invest, borrowing can save you money. In fact, its what the very rich have been doing for a long time on many ways.
+1 Exactly
Why play with debt? 3 Big Reasons to Pay Off Your Home And the logic there doesn't just stop with homes. And, yes, I realize that the math they use in "The Better Investment Arguement" is off because stock market/mutual fund gains are taxed at 15% as capital gains rather than as earned income.
Originally Posted By: FoxS
I don't mind debt when its tax efficient
I have investments with a fixed income that earn more than my mortgage costs.
In fact, its a 3 to 1 ratio, so say my mortgage is $300k, that means I only need $100k of investment that pays the mortgage cost.
So I would be silly to take $300k of savings and use it to pay a $300k mortgage when just $100k of savings is earning enough to pay the $300k mortgage.
Same thing with car loans. I had enough cash to buy my Mercedes but they were offering 1.99% interest.
So long as your dont live beyond your means, and invest, borrowing can save you money. In fact, its what the very rich have been doing for a long time on many ways.
+1 Exactly
Why play with debt? 3 Big Reasons to Pay Off Your Home And the logic there doesn't just stop with homes. And, yes, I realize that the math they use in "The Better Investment Arguement" is off because stock market/mutual fund gains are taxed at 15% as capital gains rather than as earned income.
JHZR2
Staff member
Originally Posted By: FoxS
I don't mind debt when its tax efficient
I have investments with a fixed income that earn more than my mortgage costs.
In fact, its a 3 to 1 ratio, so say my mortgage is $300k, that means I only need $100k of investment that pays the mortgage cost.
So I would be silly to take $300k of savings and use it to pay a $300k mortgage when just $100k of savings is earning enough to pay the $300k mortgage.
Same thing with car loans. I had enough cash to buy my Mercedes but they were offering 1.99% interest.
So long as your dont live beyond your means, and invest, borrowing can save you money. In fact, its what the very rich have been doing for a long time on many ways.
A $300k loan with a 1.25% tax rate and 3.3% interest on a 30 year loan is like $1625/month. That is $19500 per year out of pocket.
So youre saying that your $100k investment is yielding roughly 20%, and in reality, a bit higher, because of taxes???? Yeah, right.
And your $100k that just bought you a $300k home at the end of 30 years would be $38 Million if compounded monthly at a 20% annual yield.
Heck, your $100k yielding 5% would be $446774 after 30 years...
Of course, you mention tax advantage, so how about this... You probably get 32c on the dollar in terms of tax advantage... You pay the bank $1 in interest and get 32c back on your taxes. Ill do one better... If you give me $1 today, Ill give you a whole 50c back on April 15. A whopping deal. Feel free to send the whole 100k youre sitting on for that deal. Its a good one compared to a tax refund.
There can be benefit to leverage, but the returns on low risk these days, a market hitting a top, bond market ready to bust as soon as interest rates start to rise, etc., means that sitting on money is just silly. On an investment, in some cases, there may be benefit... Not this.
I don't mind debt when its tax efficient
I have investments with a fixed income that earn more than my mortgage costs.
In fact, its a 3 to 1 ratio, so say my mortgage is $300k, that means I only need $100k of investment that pays the mortgage cost.
So I would be silly to take $300k of savings and use it to pay a $300k mortgage when just $100k of savings is earning enough to pay the $300k mortgage.
Same thing with car loans. I had enough cash to buy my Mercedes but they were offering 1.99% interest.
So long as your dont live beyond your means, and invest, borrowing can save you money. In fact, its what the very rich have been doing for a long time on many ways.
A $300k loan with a 1.25% tax rate and 3.3% interest on a 30 year loan is like $1625/month. That is $19500 per year out of pocket.
So youre saying that your $100k investment is yielding roughly 20%, and in reality, a bit higher, because of taxes???? Yeah, right.
And your $100k that just bought you a $300k home at the end of 30 years would be $38 Million if compounded monthly at a 20% annual yield.
Heck, your $100k yielding 5% would be $446774 after 30 years...
Of course, you mention tax advantage, so how about this... You probably get 32c on the dollar in terms of tax advantage... You pay the bank $1 in interest and get 32c back on your taxes. Ill do one better... If you give me $1 today, Ill give you a whole 50c back on April 15. A whopping deal. Feel free to send the whole 100k youre sitting on for that deal. Its a good one compared to a tax refund.
There can be benefit to leverage, but the returns on low risk these days, a market hitting a top, bond market ready to bust as soon as interest rates start to rise, etc., means that sitting on money is just silly. On an investment, in some cases, there may be benefit... Not this.
Originally Posted By: wtd
Thanks everyone. It does feel good. Now I just need to not buy anything that gets me back into payments.
Congrats Wayne! I (and Dave Ramsey) salute you!
Thanks everyone. It does feel good. Now I just need to not buy anything that gets me back into payments.
Congrats Wayne! I (and Dave Ramsey) salute you!
Thanks everyone!
Congratulations-welcome to the club. Despite those who (foolishly) think you can finance your way to financial prosperity, it's far better to be completely debt free.
I've often said that you'll never know real freedom until you're free from debt. And there are a lot of people who never will know real freedom-you're one of the few with the self determination to actually make it happen.
I've often said that you'll never know real freedom until you're free from debt. And there are a lot of people who never will know real freedom-you're one of the few with the self determination to actually make it happen.
Congrats Dude! Congrats.....
Originally Posted By: JHZR2
Originally Posted By: FoxS
I don't mind debt when its tax efficient
I have investments with a fixed income that earn more than my mortgage costs.
In fact, its a 3 to 1 ratio, so say my mortgage is $300k, that means I only need $100k of investment that pays the mortgage cost.
So I would be silly to take $300k of savings and use it to pay a $300k mortgage when just $100k of savings is earning enough to pay the $300k mortgage.
Same thing with car loans. I had enough cash to buy my Mercedes but they were offering 1.99% interest.
So long as your dont live beyond your means, and invest, borrowing can save you money. In fact, its what the very rich have been doing for a long time on many ways.
A $300k loan with a 1.25% tax rate and 3.3% interest on a 30 year loan is like $1625/month. That is $19500 per year out of pocket.
So youre saying that your $100k investment is yielding roughly 20%, and in reality, a bit higher, because of taxes???? Yeah, right.
And your $100k that just bought you a $300k home at the end of 30 years would be $38 Million if compounded monthly at a 20% annual yield.
Heck, your $100k yielding 5% would be $446774 after 30 years...
Of course, you mention tax advantage, so how about this... You probably get 32c on the dollar in terms of tax advantage... You pay the bank $1 in interest and get 32c back on your taxes. Ill do one better... If you give me $1 today, Ill give you a whole 50c back on April 15. A whopping deal. Feel free to send the whole 100k youre sitting on for that deal. Its a good one compared to a tax refund.
There can be benefit to leverage, but the returns on low risk these days, a market hitting a top, bond market ready to bust as soon as interest rates start to rise, etc., means that sitting on money is just silly. On an investment, in some cases, there may be benefit... Not this.
I think I would look at it this way:
If a business owner needs funding for his business and it is either a 3.3% mortgage that you can deduct 1/3 for tax, vs a 10% business loan, mortgage wins hand down.
However the risk of losing the house due to business failure is high, and if your business is run so close to the edge that needs a big loan all the time, you may have bigger problem to worry about than that little tax here and there.
Originally Posted By: FoxS
I don't mind debt when its tax efficient
I have investments with a fixed income that earn more than my mortgage costs.
In fact, its a 3 to 1 ratio, so say my mortgage is $300k, that means I only need $100k of investment that pays the mortgage cost.
So I would be silly to take $300k of savings and use it to pay a $300k mortgage when just $100k of savings is earning enough to pay the $300k mortgage.
Same thing with car loans. I had enough cash to buy my Mercedes but they were offering 1.99% interest.
So long as your dont live beyond your means, and invest, borrowing can save you money. In fact, its what the very rich have been doing for a long time on many ways.
A $300k loan with a 1.25% tax rate and 3.3% interest on a 30 year loan is like $1625/month. That is $19500 per year out of pocket.
So youre saying that your $100k investment is yielding roughly 20%, and in reality, a bit higher, because of taxes???? Yeah, right.
And your $100k that just bought you a $300k home at the end of 30 years would be $38 Million if compounded monthly at a 20% annual yield.
Heck, your $100k yielding 5% would be $446774 after 30 years...
Of course, you mention tax advantage, so how about this... You probably get 32c on the dollar in terms of tax advantage... You pay the bank $1 in interest and get 32c back on your taxes. Ill do one better... If you give me $1 today, Ill give you a whole 50c back on April 15. A whopping deal. Feel free to send the whole 100k youre sitting on for that deal. Its a good one compared to a tax refund.
There can be benefit to leverage, but the returns on low risk these days, a market hitting a top, bond market ready to bust as soon as interest rates start to rise, etc., means that sitting on money is just silly. On an investment, in some cases, there may be benefit... Not this.
I think I would look at it this way:
If a business owner needs funding for his business and it is either a 3.3% mortgage that you can deduct 1/3 for tax, vs a 10% business loan, mortgage wins hand down.
However the risk of losing the house due to business failure is high, and if your business is run so close to the edge that needs a big loan all the time, you may have bigger problem to worry about than that little tax here and there.
Originally Posted By: Jarlaxle
Honestly...I am seriously considering selling my house for whatever I can get for it. It's getting to the point the taxes just aren't worth it...I could get a nice apartment for just what I pay in property taxes now. (It has almost tripled since 2010.)
Depends on what you want, usually the quality of housing in an apartment is not the same as a house. Condo is a better comparison but you will need to also factor in HOA ($300/mo can end up being a lot over 30 years). For short term small family with less cash available, renting is actually much cheaper and less risky in case of employment change or relocation.
Honestly...I am seriously considering selling my house for whatever I can get for it. It's getting to the point the taxes just aren't worth it...I could get a nice apartment for just what I pay in property taxes now. (It has almost tripled since 2010.)
Depends on what you want, usually the quality of housing in an apartment is not the same as a house. Condo is a better comparison but you will need to also factor in HOA ($300/mo can end up being a lot over 30 years). For short term small family with less cash available, renting is actually much cheaper and less risky in case of employment change or relocation.
Originally Posted By: JHZR2
Originally Posted By: FoxS
I don't mind debt when its tax efficient
I have investments with a fixed income that earn more than my mortgage costs.
In fact, its a 3 to 1 ratio, so say my mortgage is $300k, that means I only need $100k of investment that pays the mortgage cost.
So I would be silly to take $300k of savings and use it to pay a $300k mortgage when just $100k of savings is earning enough to pay the $300k mortgage.
Same thing with car loans. I had enough cash to buy my Mercedes but they were offering 1.99% interest.
So long as your dont live beyond your means, and invest, borrowing can save you money. In fact, its what the very rich have been doing for a long time on many ways.
A $300k loan with a 1.25% tax rate and 3.3% interest on a 30 year loan is like $1625/month. That is $19500 per year out of pocket.
So youre saying that your $100k investment is yielding roughly 20%, and in reality, a bit higher, because of taxes???? Yeah, right.
And your $100k that just bought you a $300k home at the end of 30 years would be $38 Million if compounded monthly at a 20% annual yield.
Heck, your $100k yielding 5% would be $446774 after 30 years...
Of course, you mention tax advantage, so how about this... You probably get 32c on the dollar in terms of tax advantage... You pay the bank $1 in interest and get 32c back on your taxes. Ill do one better... If you give me $1 today, Ill give you a whole 50c back on April 15. A whopping deal. Feel free to send the whole 100k youre sitting on for that deal. Its a good one compared to a tax refund.
There can be benefit to leverage, but the returns on low risk these days, a market hitting a top, bond market ready to bust as soon as interest rates start to rise, etc., means that sitting on money is just silly. On an investment, in some cases, there may be benefit... Not this.
So I have a mortgage that has an interest rate of 2.5% before tax deduction. A marginal tax rate of 40% (state and federal). So the cost of my max $1million mortgage is $15k a year or 1.5%.
I took out municipal bonds with a yield at the time of 4%. This was when the market was scared that state and local govts would go bankrupt. This return is tax free. The yield now is lower and I've actually made a decent capital appreciation on the investment but the yield on my original investment is 4% tax free.
4% investment return is 2.67 times my mortgage interest rate of 1.5%. For a $1million mortgage I need only $375k in an investment that earns 4% after tax.
I actually have a set up pretty much like this. My fixed income investment is paying my mortgage interest. I then save a larger portion of my income which I invest in other vehicles.
If you know what you're doing from a purely financing perspective, its makes it easier to build your net worth. There is no way I am paying any part of this mortgage off any faster than I need to.
Originally Posted By: FoxS
I don't mind debt when its tax efficient
I have investments with a fixed income that earn more than my mortgage costs.
In fact, its a 3 to 1 ratio, so say my mortgage is $300k, that means I only need $100k of investment that pays the mortgage cost.
So I would be silly to take $300k of savings and use it to pay a $300k mortgage when just $100k of savings is earning enough to pay the $300k mortgage.
Same thing with car loans. I had enough cash to buy my Mercedes but they were offering 1.99% interest.
So long as your dont live beyond your means, and invest, borrowing can save you money. In fact, its what the very rich have been doing for a long time on many ways.
A $300k loan with a 1.25% tax rate and 3.3% interest on a 30 year loan is like $1625/month. That is $19500 per year out of pocket.
So youre saying that your $100k investment is yielding roughly 20%, and in reality, a bit higher, because of taxes???? Yeah, right.
And your $100k that just bought you a $300k home at the end of 30 years would be $38 Million if compounded monthly at a 20% annual yield.
Heck, your $100k yielding 5% would be $446774 after 30 years...
Of course, you mention tax advantage, so how about this... You probably get 32c on the dollar in terms of tax advantage... You pay the bank $1 in interest and get 32c back on your taxes. Ill do one better... If you give me $1 today, Ill give you a whole 50c back on April 15. A whopping deal. Feel free to send the whole 100k youre sitting on for that deal. Its a good one compared to a tax refund.
There can be benefit to leverage, but the returns on low risk these days, a market hitting a top, bond market ready to bust as soon as interest rates start to rise, etc., means that sitting on money is just silly. On an investment, in some cases, there may be benefit... Not this.
So I have a mortgage that has an interest rate of 2.5% before tax deduction. A marginal tax rate of 40% (state and federal). So the cost of my max $1million mortgage is $15k a year or 1.5%.
I took out municipal bonds with a yield at the time of 4%. This was when the market was scared that state and local govts would go bankrupt. This return is tax free. The yield now is lower and I've actually made a decent capital appreciation on the investment but the yield on my original investment is 4% tax free.
4% investment return is 2.67 times my mortgage interest rate of 1.5%. For a $1million mortgage I need only $375k in an investment that earns 4% after tax.
I actually have a set up pretty much like this. My fixed income investment is paying my mortgage interest. I then save a larger portion of my income which I invest in other vehicles.
If you know what you're doing from a purely financing perspective, its makes it easier to build your net worth. There is no way I am paying any part of this mortgage off any faster than I need to.
Congratulations. I am also debt free but purely because I have chosen not to buy property in a property bubble. I would love to be paying a mortgage that is affordable but there just isn't such a thing down under any more. My wife and I started out with nothing and we had no backing. For now we just save and invest but to be honest I have made my peace to rent for the rest of my life. Unless of course we can shack up on the FIL farm but that is highly unlikely and wouldn't feel right if we didn't pay for it somehow.
Originally Posted By: FoxS
So I have a mortgage that has an interest rate of 2.5% before tax deduction. A marginal tax rate of 40% (state and federal). So the cost of my max $1million mortgage is $15k a year or 1.5%.
I took out municipal bonds with a yield at the time of 4%. This was when the market was scared that state and local govts would go bankrupt. This return is tax free. The yield now is lower and I've actually made a decent capital appreciation on the investment but the yield on my original investment is 4% tax free.
4% investment return is 2.67 times my mortgage interest rate of 1.5%. For a $1million mortgage I need only $375k in an investment that earns 4% after tax.
I actually have a set up pretty much like this. My fixed income investment is paying my mortgage interest. I then save a larger portion of my income which I invest in other vehicles.
If you know what you're doing from a purely financing perspective, its makes it easier to build your net worth. There is no way I am paying any part of this mortgage off any faster than I need to.
There is risk in this hedging strategy, not entirely risk free like paying off the mortgage.
First of all, municipal government do go bankrupt once in a while. Even you will likely get paid most of it back a bankruptcy and a renegotiation that reduced your 4% down to a 1% or a write off of your bond would throw your income off big, and if this is your hedge for the mortgage you'll suddenly not able to pay your mortgage
Second, I believe bankruptcy would not take away your residence. If you have a mortgage on it that is hedge on a bond. You can lose the bond in bankruptcy and end up with a huge mortgage.
So while paying off mortgage ahead of time is algebraically equivalent to investing in a low risk bond that yield higher than the interest after tax. They are not statistically equivalent.
So I have a mortgage that has an interest rate of 2.5% before tax deduction. A marginal tax rate of 40% (state and federal). So the cost of my max $1million mortgage is $15k a year or 1.5%.
I took out municipal bonds with a yield at the time of 4%. This was when the market was scared that state and local govts would go bankrupt. This return is tax free. The yield now is lower and I've actually made a decent capital appreciation on the investment but the yield on my original investment is 4% tax free.
4% investment return is 2.67 times my mortgage interest rate of 1.5%. For a $1million mortgage I need only $375k in an investment that earns 4% after tax.
I actually have a set up pretty much like this. My fixed income investment is paying my mortgage interest. I then save a larger portion of my income which I invest in other vehicles.
If you know what you're doing from a purely financing perspective, its makes it easier to build your net worth. There is no way I am paying any part of this mortgage off any faster than I need to.
There is risk in this hedging strategy, not entirely risk free like paying off the mortgage.
First of all, municipal government do go bankrupt once in a while. Even you will likely get paid most of it back a bankruptcy and a renegotiation that reduced your 4% down to a 1% or a write off of your bond would throw your income off big, and if this is your hedge for the mortgage you'll suddenly not able to pay your mortgage
Second, I believe bankruptcy would not take away your residence. If you have a mortgage on it that is hedge on a bond. You can lose the bond in bankruptcy and end up with a huge mortgage.
So while paying off mortgage ahead of time is algebraically equivalent to investing in a low risk bond that yield higher than the interest after tax. They are not statistically equivalent.
Originally Posted By: crinkles
For now we just save and invest but to be honest I have made my peace to rent for the rest of my life.
I've come to this conclusion also - if I'm staying in this town that is. A mortgage on a 1BR condo even, would be WAY more than I'm paying now in rent, not to mention taxes, HOA fees, etc.
A lot less maintenance to worry about too. It does not make financial sense in my market to buy (especially single w/o kids).
For now we just save and invest but to be honest I have made my peace to rent for the rest of my life.
I've come to this conclusion also - if I'm staying in this town that is. A mortgage on a 1BR condo even, would be WAY more than I'm paying now in rent, not to mention taxes, HOA fees, etc.
A lot less maintenance to worry about too. It does not make financial sense in my market to buy (especially single w/o kids).
Originally Posted By: PandaBear
Originally Posted By: FoxS
So I have a mortgage that has an interest rate of 2.5% before tax deduction. A marginal tax rate of 40% (state and federal). So the cost of my max $1million mortgage is $15k a year or 1.5%.
I took out municipal bonds with a yield at the time of 4%. This was when the market was scared that state and local govts would go bankrupt. This return is tax free. The yield now is lower and I've actually made a decent capital appreciation on the investment but the yield on my original investment is 4% tax free.
4% investment return is 2.67 times my mortgage interest rate of 1.5%. For a $1million mortgage I need only $375k in an investment that earns 4% after tax.
I actually have a set up pretty much like this. My fixed income investment is paying my mortgage interest. I then save a larger portion of my income which I invest in other vehicles.
If you know what you're doing from a purely financing perspective, its makes it easier to build your net worth. There is no way I am paying any part of this mortgage off any faster than I need to.
There is risk in this hedging strategy, not entirely risk free like paying off the mortgage.
First of all, municipal government do go bankrupt once in a while. Even you will likely get paid most of it back a bankruptcy and a renegotiation that reduced your 4% down to a 1% or a write off of your bond would throw your income off big, and if this is your hedge for the mortgage you'll suddenly not able to pay your mortgage
Second, I believe bankruptcy would not take away your residence. If you have a mortgage on it that is hedge on a bond. You can lose the bond in bankruptcy and end up with a huge mortgage.
So while paying off mortgage ahead of time is algebraically equivalent to investing in a low risk bond that yield higher than the interest after tax. They are not statistically equivalent.
Insignificant risk on the munis as I invested in funds rather than individual bonds.
Going bankrupt is unlikely if your net worth is sufficient, you structure your business interests correctly and you have sufficient liability insurance.
Originally Posted By: FoxS
So I have a mortgage that has an interest rate of 2.5% before tax deduction. A marginal tax rate of 40% (state and federal). So the cost of my max $1million mortgage is $15k a year or 1.5%.
I took out municipal bonds with a yield at the time of 4%. This was when the market was scared that state and local govts would go bankrupt. This return is tax free. The yield now is lower and I've actually made a decent capital appreciation on the investment but the yield on my original investment is 4% tax free.
4% investment return is 2.67 times my mortgage interest rate of 1.5%. For a $1million mortgage I need only $375k in an investment that earns 4% after tax.
I actually have a set up pretty much like this. My fixed income investment is paying my mortgage interest. I then save a larger portion of my income which I invest in other vehicles.
If you know what you're doing from a purely financing perspective, its makes it easier to build your net worth. There is no way I am paying any part of this mortgage off any faster than I need to.
There is risk in this hedging strategy, not entirely risk free like paying off the mortgage.
First of all, municipal government do go bankrupt once in a while. Even you will likely get paid most of it back a bankruptcy and a renegotiation that reduced your 4% down to a 1% or a write off of your bond would throw your income off big, and if this is your hedge for the mortgage you'll suddenly not able to pay your mortgage
Second, I believe bankruptcy would not take away your residence. If you have a mortgage on it that is hedge on a bond. You can lose the bond in bankruptcy and end up with a huge mortgage.
So while paying off mortgage ahead of time is algebraically equivalent to investing in a low risk bond that yield higher than the interest after tax. They are not statistically equivalent.
Insignificant risk on the munis as I invested in funds rather than individual bonds.
Going bankrupt is unlikely if your net worth is sufficient, you structure your business interests correctly and you have sufficient liability insurance.
Originally Posted By: surfstar
Originally Posted By: crinkles
For now we just save and invest but to be honest I have made my peace to rent for the rest of my life.
I've come to this conclusion also - if I'm staying in this town that is. A mortgage on a 1BR condo even, would be WAY more than I'm paying now in rent, not to mention taxes, HOA fees, etc.
A lot less maintenance to worry about too. It does not make financial sense in my market to buy (especially single w/o kids).
I sorta think the same way. Right now it'll take twenty years to "beat" rent via home ownership (I have some Excel sheets where I compare total spent on rent vs total spent on home). Maybe more, when you start to tack in home repairs. It's pretty hard to tell that far out, though. But between a career, family raising and a long commute, boy do I wish I was still renting instead of dealing with house leaks.
Originally Posted By: crinkles
For now we just save and invest but to be honest I have made my peace to rent for the rest of my life.
I've come to this conclusion also - if I'm staying in this town that is. A mortgage on a 1BR condo even, would be WAY more than I'm paying now in rent, not to mention taxes, HOA fees, etc.
A lot less maintenance to worry about too. It does not make financial sense in my market to buy (especially single w/o kids).
I sorta think the same way. Right now it'll take twenty years to "beat" rent via home ownership (I have some Excel sheets where I compare total spent on rent vs total spent on home). Maybe more, when you start to tack in home repairs. It's pretty hard to tell that far out, though. But between a career, family raising and a long commute, boy do I wish I was still renting instead of dealing with house leaks.
Supton,
Why not move closer to work ?
Why not move closer to work ?
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