[nychiefsfan]

Originally Posted by SKB

Kort was a stock broker, no wonder that is his former occupation.

hmmmm...you're baiting the hook again, my friend!!!

I aced statistics in college but I'm not a mathematician like kort.

[SKB]

Originally Posted by kort677

in 18 months regardless of the value of my house I will have had 18 month of enjoyment in my home, while you've made 18 payments towards someone else's dreamhome or retirement fund.
If I were you I wouldn't be showcasing your lack of sophistication, both financial and social.
yeah I know you were a big time supevisor in some banks credit card dept. that certainly doesn't qualify you as any kind of financial wiz, and you and people like you are last one's anyone should look towards for any kind of financial advise.
So I hope that the value of the house you're waiting on buying comes down that last 20k, so you can save $10 a month on the mortgage, good luck, and don't repsond to my messages or mention my name in your comments

Sorry, but you really need take some math lessons. You actually said that I lack sophistication, in financial and social. ROFLMAO again!!! Your the one with grade 3 math skills.

I really, hope you read over your mortgage contract and payment schedule and didn't just calculate the payments yourself. If you did your in for a big surprise when the first payment comes out. Its going to be a lot higher than what you think.

OMG, you crack me up.

[nychiefsfan]

Originally Posted by SKB

OMG, you crack me up.

I agree This thread is very entertaining on so many levels

[Mike Peterson]

Originally Posted by nychiefsfan

I did the math. Most of the homes that I'm watching have a JMV significantly lower than the asking price. If asking prices revert to somewhere near 2003 prices, then I'll be able to buy a house similar to the $275k houses I'm watching for around 200k.

Let's use those numbers and we'll do the "math".

275k at 6.75% for 30 years = $1783.64 per month x 12 months = $21,403.68

200k at 6.75% for 30 years = $1297.20 per month x 12 months = $15,566.40

$21,403.68 minus $15,566.40 = $5837.28 more per year buying at 275k

$5837.28 x 30 years = $175,118.40 more for $275k house.

Buying right now is pissing away money. If the price of housing drops to 2003 prices in the next couple years, then it would make more sense to rent right now, while rent is cheap, and SAVE $175k over a 30 year loan.

Of course, you're hoping the market turns around quickly so you don't look foolish for buying at the wrong time. I can't blame you for hoping that. There's a good chance your house will lose value in the next few years, which means you might have negative equity, depending on how you paid for your home.

I'm a psychology major, not a math major, but my calculations come to more than "$40-50 a month" difference. Please correct me if I'm wrong.

The only problem with your calculations is they are based on alot of "ifs".

Now say 'if" the price didn't drop to $200,000 from the $275,000 and only dropped to $250,000.

And in that time interest rates went up 1/2 a point.

At the reduced price you are paying about $80 a month less which works out to $960 a year.

"If" you figure tax benefits into the equation and the fact that you would also be paying rent monthly say at $1200 a month going towards someone elses equity the math comes out a little differently.

[lostbuyer]

how is paying rent pissing your money away?or paying another guys mortgage? I think rent doesnt cover the landlords mortgage by a longshot....so I would have to disagree with that statement kort...and we aint waiting on 20k reduction its more like 20-50% on total wishing price...

[lostbuyer]

its an interesting race though......who will win?TAG TEAM 1?OR TAG TEAM2?STATISTICS AND HISTORY? OR WISHFUL THINKING AND DENIAL? stay tuned folks.....

[Mike Peterson]

Originally Posted by lostbuyer

how is paying rent pissing your money away?or paying another guys mortgage? I think rent doesnt cover the landlords mortgage by a longshot....so I would have to disagree with that statement kort...and we aint waiting on 20k reduction its more like 20-50% on total wishing price...

I have to disagree with you here.
If rent did not cover a landlords mortgage, why would anyone ever buy property to rent out?
I understand there may be some owners out there now that just bought and are renting temporarily waiting to see what the market does. They may not be covering their note but for the most part landlords cover their note and make a profit.

[lostbuyer]

I know im talking about people who just bought and cant sell so they have to rent to minimize losses......I should really start specifying...........

[nychiefsfan]

Originally Posted by Mike Peterson

The only problem with your calculations is they are based on alot of "ifs".

Now say 'if" the price didn't drop to $200,000 from the $275,000 and only dropped to $250,000.

And in that time interest rates went up 1/2 a point.

At the reduced price you are paying about $80 a month less which works out to $960 a year.

"If" you figure tax benefits into the equation and the fact that you would also be paying rent monthly say at $1200 a month going towards someone elses equity the math comes out a little differently.

What makes you believe the prices won't drop more than that?

Why would interest rates continue to climb during a housing recession?

Fed Reserve Chairman Bernanke recently expressed concern regarding the housing slump and it's affect on the economy.

I'm pretty confident that the prices will drop more than 250k for what I'm looking for. If they don't, I'm okay with that too.

[rstate]

It depends when you purchased the rental properties. I've owned my rentals for over 14 years and the rent easily covers all of my expenses plus I have enough to pay my house mortgage payment. Even though I still think it's a great time to buy a house in Northeast Florida, I'm glad that Kort and other people aren't changing your minds to stop renting because that would reduce the potential pool of renters.