U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > New Jersey
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
Reply Start New Thread
 
Old 09-03-2009, 10:24 AM
 
1,235 posts, read 2,232,040 times
Reputation: 257
Quote:
Originally Posted by nemmert View Post
Did you deduct 1/4 of what you'd be paying for mortgage and property tax as money you'd get back at the end of the year? Paying $4000 for your mortgage and property tax is essentially equal to paying $3000 in rent.
Oh that's right. I'm not sure I get 1/4 back but I do get a portion.

So actually then, in this case, it's even better to own than I thought.
Reply With Quote Quick reply to this message

 
Old 09-03-2009, 10:25 AM
 
1,235 posts, read 2,232,040 times
Reputation: 257
Quote:
Originally Posted by icibiu View Post
Find another rental? No thanks!

Between getting evicted every year, low interest rates, lowered housing prices and the tax credit, right now was the right time to buy for us. We need to pay for housing no matter what now we will be paying AND build up equity.
We rented for a long time, and it has it's pros but if I never deal with another jerk landlord again in my life, it is a good thing.
Reply With Quote Quick reply to this message
 
Old 09-03-2009, 11:39 AM
 
Location: Holmdel, NJ
17,021 posts, read 12,393,575 times
Reputation: 9565
Quote:
Originally Posted by nemmert View Post
Did you deduct 1/4 of what you'd be paying for mortgage and property tax as money you'd get back at the end of the year? Paying $4000 for your mortgage and property tax is essentially equal to paying $3000 in rent.
nope, i didnt take out the tax deduction. i dont like to count on tax deductions and i think i could probably negotiate the rent a bit. however, its very reasonable to work that into the calculation.

i definitely see the major plus of renting as flexibility not cost. what if real estate further crashes, taxes increase, i need to leave the country asap, etc. i have been given every advantage in this world yet i stilll always feel like being prepared for the worst.
Reply With Quote Quick reply to this message
 
Old 09-03-2009, 12:11 PM
 
1,235 posts, read 2,232,040 times
Reputation: 257
Well, the flexibility of renting is the pro and the con. It's a pro because you aren't tied down, but either is your landlord, which can get to be a real drag, especially if you have kids or want to improve your place or whatever.

I remember I wouldn't even want to buy something simple like curtains when I was renting because I knew they wouldn't fit in the next place.
Reply With Quote Quick reply to this message
 
Old 09-03-2009, 12:54 PM
 
Location: Forest Hills
554 posts, read 916,450 times
Reputation: 336
Quote:
Originally Posted by CaptainNJ View Post
nope, i didnt take out the tax deduction. i dont like to count on tax deductions and i think i could probably negotiate the rent a bit. however, its very reasonable to work that into the calculation.

i definitely see the major plus of renting as flexibility not cost. what if real estate further crashes, taxes increase, i need to leave the country asap, etc. i have been given every advantage in this world yet i stilll always feel like being prepared for the worst.
What if real estate further crashes? Who cares... it's a short term problem much like your stock portfolio... in the long term, real estate is an investment that will appreciate.

Taxes increase... are we talking income tax (bigger write off per dollar of property tax) or are we talking property tax? I could throw the same back, what if rent increases? Go figure, if your land lords property taxes go up, so will your rent. Rent and property taxes are directly correlated.

Leave the country ASAP? Go for it... what does a house have to do with leaving?

Your last sentence is intriguing... do you have a savings account? 401(K)? I'd question the logic of either if you're planning for the worst which in my mind has got to include imminent death... mine as well live for today because you don't know what tomorrow holds right?

Again, home ownership has it's downside... mostly in flexibility and the upfront investment now required to get into a home... but if flexibility isn't needed, the long term benefits of home ownership far outweight the initial investment required and it's a smart move financially. Just think, in 15 years I'll be paying only property taxes and you'll still be paying rent (which includes property taxes) and I'll have the ability to sell a home to generate several hundred thousand dollars worth of capital.
Reply With Quote Quick reply to this message
 
Old 09-03-2009, 01:05 PM
 
Location: Edison NJ
1,830 posts, read 3,971,872 times
Reputation: 946
I actually get enough back from fed taxes to cover my state taxes. So my tax bill = 0. Now, if I had lower state taxes id actually get to enjoy my refund more.
Reply With Quote Quick reply to this message
 
Old 09-03-2009, 01:06 PM
 
Location: Holmdel, NJ
17,021 posts, read 12,393,575 times
Reputation: 9565
Quote:
Originally Posted by nemmert View Post
What if real estate further crashes? Who cares... it's a short term problem much like your stock portfolio... in the long term, real estate is an investment that will appreciate.

Taxes increase... are we talking income tax (bigger write off per dollar of property tax) or are we talking property tax? I could throw the same back, what if rent increases? Go figure, if your land lords property taxes go up, so will your rent. Rent and property taxes are directly correlated.

Leave the country ASAP? Go for it... what does a house have to do with leaving?

Your last sentence is intriguing... do you have a savings account? 401(K)? I'd question the logic of either if you're planning for the worst which in my mind has got to include imminent death... mine as well live for today because you don't know what tomorrow holds right?

Again, home ownership has it's downside... mostly in flexibility and the upfront investment now required to get into a home... but if flexibility isn't needed, the long term benefits of home ownership far outweight the initial investment required and it's a smart move financially. Just think, in 15 years I'll be paying only property taxes and you'll still be paying rent (which includes property taxes) and I'll have the ability to sell a home to generate several hundred thousand dollars worth of capital.
there are better investments for me to put my money into than real estate. i also have the freedom to buy and sell investments where a house is not liquid and if you have to sell fast, you have to take a huge loss.

we are talking income taxes which can impact what i could afford. any deductions may be eliminated by a government who wants more of my money.

i cant take the house with me if i leave the country so it could be a total loss.

i dont believe a 401k/IRA is a good idea so i dont have that. currently most of my money is in various investments/money markets. pretty liquid stuff. i like that, buying a house ties up a nice chunk of it in a non-liquid asset. i do enjoy today but i also worry about tomorrow. the phrase "live for today" may be cute but im too practical of a person to pretend cute sayings mean much.
Reply With Quote Quick reply to this message
 
Old 09-03-2009, 01:30 PM
 
Location: Newport Jersey City,NJ
576 posts, read 1,196,293 times
Reputation: 274
i bought because i believe:

1) The real estate market around my area is bottoming as the banks are stabilizing and coming back much faster than expected. You cannot group NYC + surroundings with the rest of the country, it is almost 100% dependent on wall street.

2) Taking advantage of the current rate, it's one of those once a lifetime opportunities. It's like a 10% off sale on all properties forced by the government

3) Savings on tax, significant $ for a single filer in the 28% bracket

4) The area has very good potential to further gentrify

5) The unit/location itself is perfect for all my requirements and seller accepted a very good price compared to market based on the tax records.

That's why i bought....
Reply With Quote Quick reply to this message
 
Old 09-03-2009, 02:01 PM
 
Location: Holmdel, NJ
17,021 posts, read 12,393,575 times
Reputation: 9565
Quote:
Originally Posted by gagaliya View Post
4) The area has very good potential to further gentrify
i know i am super sensitive to my surroundings so when i buy a place, its already going to have been gentrified. there is no way im buying a place that isnt how i like it in the hopes it will further gentrify. would you be unhappy if no further gentrification happens during your time there?
Reply With Quote Quick reply to this message
 
Old 09-03-2009, 02:08 PM
 
Location: Houston, Texas
10,428 posts, read 27,695,721 times
Reputation: 9518
Some of you know me, I been gone from NJ for awhile. Well I am back for 3 weeks while here I am seeing and talking to lots of people I come across. All people here talk about are the property taxes. I mean I knew they do on this forum because I read it from Texas but everyone does the same thing in person too. I dont get it. NJ is my home too for my first 36 years but paying that much money for the right to live here just dont make sense.

I have a third acre bulkheaded on a 90,000 acre lake with my own dock in Texas that we will build on some day. My taxes just went from $22.00 a year. Yes I said that right $22.00 a year to $78 this year. Many of us are appealing that. Out of $78 a year, half goes to school taxes. Gotta support those high school football teams ya know. To hell with education.

I dont own a home anymore, it's nothing but a depreciating asset anymore and will continue to be for many many years to come. Now my home is on wheels and cost more then most homes (not NJ homes) and we love it and would not trade it for the world. Dont like the neighbor or the scenery gets boring? Just turn the key and go.

So what this means is I pay zero property taxes.

It is good to see everyone again as well as seeing all my old stomping grounds.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:



Over $79,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > New Jersey

All times are GMT -6.

2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top