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Old 06-29-2018, 01:05 AM
 
33,016 posts, read 27,361,845 times
Reputation: 9074

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Quote:
Originally Posted by aslowdodge View Post
Hmmmm. Ever consider that if taxes stay the same insurance can go up. How about if the property had an adjustable rate loan that is increasing? Or a ballon. Or maybe a new roof is needed?
As a homeowner I will get lower taxes with the exemption. A whopping $250, about a 5% savings.
Btw on all my rentals taxes and insurance went up each of the last 3 years along with repairs. My rents have not gone up.

I'm sure insurance goes up, even if taxes don't. But note that however much homeowner's insurance goes up, landlords' insurance goes up more. Everything I've read says that adjustable-rate mortgages are not common.

Your Mileage May Vary - as I mentioned, the school taxes on a typical rental house in Michigan are more than $1,000/yr greater than the school taxes on an owner-occupied home.

Most major expenditures - like roofs and HVAC - are predictable and should be planned for, with monthly allocations to an account dedicated toward those expenses.
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Old 06-29-2018, 01:08 AM
 
33,016 posts, read 27,361,845 times
Reputation: 9074
Quote:
Originally Posted by Huckleberry3911948 View Post
A bit lopsided in reasoning
So if all the dysfunctional families with lousy credit are given ridiculous loans for homes they can’t afford -this will bump up their kids chances of success in the world ????
Sounds a lot to me like the social promotion programs that take place in the schools

I think the existing data suggest that mortgage lenders overall do a fairly good job of sorting out the dysfunctional families.
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Old 06-29-2018, 05:38 AM
 
24,173 posts, read 10,494,426 times
Reputation: 46152
Quote:
Originally Posted by freemkt View Post
Just noting the reality that veterans have a higher homeownership rate than other Americans, and that VA loans are easier to qualify.
Maybe you should have joined the US military, done a tour or or two of combat and gone through the actual process of a VA loan instead of collecting vintage porn.
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Old 06-29-2018, 05:46 AM
 
Location: Spain
12,722 posts, read 7,520,312 times
Reputation: 22633
Quote:
Originally Posted by aslowdodge View Post
Hmmmm. Ever consider that if taxes stay the same insurance can go up. How about if the property had an adjustable rate loan that is increasing? Or a ballon. Or maybe a new roof is needed?
As a homeowner I will get lower taxes with the exemption. A whopping $250, about a 5% savings.
Btw on all my rentals taxes and insurance went up each of the last 3 years along with repairs. My rents have not gone up.
He's been told the flaws in his "homeowners live in static price happylandia" argument a thousand times, it never stops him from coming back with the same argument over and over for years now, the guy who has never owned a home telling the people who have owned homes that they are wrong on their expenses.

Bonus = almost everyone who has owned a home has rented as well, so they see both sides of it with actual experience, freemkt has nothing but experience in substandard rentals.
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Old 06-29-2018, 06:44 AM
 
11,411 posts, read 7,756,963 times
Reputation: 21922
Quote:
Originally Posted by freemkt View Post
I'm sure insurance goes up, even if taxes don't. But note that however much homeowner's insurance goes up, landlords' insurance goes up more. Everything I've read says that adjustable-rate mortgages are not common.

Your Mileage May Vary - as I mentioned, the school taxes on a typical rental house in Michigan are more than $1,000/yr greater than the school taxes on an owner-occupied home.

Most major expenditures - like roofs and HVAC - are predictable and should be planned for, with monthly allocations to an account dedicated toward those expenses.
Again you’re pointing to one municipality in one state and assuming all 20,000+ cities tax exactly the same. Not hardly.

And secondly, rent increases are also predictable and should be planned for with monthly allocations dedicated toward that expense. Or do you believe that it’s somehow easy for homeowners to fund the rising costs of insurance, taxes, repairs and maintenance? A homeowner has to make more money each year to cover the increases. Just like a tenant does with increasing rent. I wouldn’t own a home if my income was the same as it was 10 years ago. I wouldn’t be able to afford it.

You have and probably will always have an income issue. That’s your true barrier to the nirvana that’s homeownership.
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Old 06-29-2018, 07:41 AM
 
17,390 posts, read 11,924,088 times
Reputation: 16136
Quote:
Originally Posted by freemkt View Post
But if you are a homeowner, in most states you enjoy a preferential property tax rate lower than the rate on rental property. e.g. in Michigan, the school tax rate on rental property is 4x the rate on owner-occupied homes. The school prop tax on a typical rental house is >$1,000 more than on an owner-occupied home.

Michigan also has a cap on annual property tax increases, plus an option for voters to override the cap. So voters (homeowner majority) vote to override the cap on rental prop taxes, but
NEVER vote to override the cap on their own property taxes.

Also, rents typically rise even if there is no property tax increase, so when homeowner costs stay the same, rents usually go up anyway.
Again, showing your complete ignorance about homeownership. There are more costs to owning a home than property taxes.

And I'm not sure where you get the idea that property taxes don't increase year to year. Even in California, where I lived for a long time, they went up. The rise was capped, per Prop 13, but it still increased.
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Old 06-29-2018, 08:33 AM
 
5,902 posts, read 4,401,824 times
Reputation: 13426
As always freemarket, your problems are due to a lack of time management and a complete lack of understanding of opportunity cost.

If you spent half the time you spend looking into irrelevant local laws and other garbage, you could be living your best quality of life.

You’re a prime example of:

https://www.goodreads.com/quotes/884...rth-because-it
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Old 06-29-2018, 08:56 AM
 
10,500 posts, read 5,557,553 times
Reputation: 10572
Quote:
Originally Posted by Thatsright19 View Post
As always freemarket, your problems are due to a lack of time management and a complete lack of understanding of opportunity cost.

If you spent half the time you spend looking into irrelevant local laws and other garbage, you could be living your best quality of life.

You’re a prime example of:

https://www.goodreads.com/quotes/884...rth-because-it
Based on his posts, it appears that freemkt's opportunity cost is so low, it can't be reliably measured.
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Old 06-29-2018, 09:03 AM
 
Location: Paranoid State
13,044 posts, read 13,813,168 times
Reputation: 15839
Quote:
Originally Posted by freemkt View Post
Then making home ownership scalable would enable people of lower wealth to own lower homes.
That would not be in my best interest.
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Old 06-29-2018, 09:06 AM
 
Location: Paranoid State
13,044 posts, read 13,813,168 times
Reputation: 15839
Quote:
Originally Posted by GeoffD View Post
Educational outcome of children correlates very highly with the socioeconomic class of their parents. The children of white collar professionals tend to have a far better outcome than children of low income single parents. Home ownership has nothing to do with it. It’s the parents.
Educational outcome of children correlates even higher with IQ of children which correlates even higher with IQ of the biological parents.
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