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Old 03-01-2015, 05:50 AM
 
33,046 posts, read 22,057,675 times
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Quote:
Originally Posted by HappyTexan View Post
My MIL has been renting for the past 5 years.
The owner sold the unit and she has just been informed of a significant rent increase.
She's 71 and this has upset her pretty well because she just does not want to entertain the idea of having to go look for a new apartment and then the entire process of moving out and in.

She's told me numerous times she likes where she's living. I told her to just pay the increase if she can afford it. She can afford it but she just doesn't want to pay it.

You can't always have your cake and eat it too.

Some people get to have their cake and eat it too - like her landlord.
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Old 03-01-2015, 10:54 AM
 
12,705 posts, read 9,972,676 times
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Quote:
Originally Posted by wit-nit View Post
^^^ You have me rolling on the floor with laughter, what confused world are you living in.

What part of when I sell I get everything back that I invested in plus a profit.
If I rented I'd get zero back.
Quite simple isn't it.
As I said, you may be technically correct but you still are ignoring opportunity costs. You also assume a very high appreciation rate which will continue.
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Old 03-01-2015, 10:56 AM
 
12,705 posts, read 9,972,676 times
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Quote:
Originally Posted by freemkt View Post
Some people get to have their cake and eat it too - like her landlord.
If it only keeps up with inflation, it isn't an increase at all in real terms. I'd argue real terms are the only relevant ones anyway, as a fiat currency has no value apart from purchasing power...
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Old 03-01-2015, 10:57 AM
 
71,584 posts, read 71,730,589 times
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yep , the equation always seems so easy to those who keep terrible records of costs of ownership and don't know how to invest elsewhere for far greater returns than resi real estate provides.

resi real estate you live in is pretty good as a cost cutter but as an investment it leaves much to be desired as well as if you consume it the value is meaningless .

ask most retirees what let the retire and they will tell you a paid off house. not the value of the house.
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Old 03-01-2015, 12:50 PM
 
Location: Los Angeles area
14,018 posts, read 17,737,509 times
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Quote:
Originally Posted by ncole1 View Post
Most homeowners don't have enough itemizable deductions to exceed the standard deduction anyway. When they do, it is typically by a small amount such as $2,000. A 25% tax bracket deduction of $2,000 over the std deduction would only take $500 off your tax bill.........
My question is beside the main point. (I agree that if one is taking the standard deduction, then all of the mortgage interest is simply a cost.)

But my question is, how do you know that "most" homeowners don't have enough itemizable deductions to exceed the standard deduction? I'm not saying you're wrong, as I have no data on that. The IRS must keep statistics on that sort of thing, but I've never seen them. So this is just curiosity on my part.
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Old 03-01-2015, 12:56 PM
 
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I have to look but i think i have some graphs on that.
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Old 03-01-2015, 01:16 PM
 
Location: Albuquerque NM
1,660 posts, read 1,525,009 times
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This is an idea that might appeal to military retirees. Some of the military bases are opening up their housing to military retirees. This article is for Elgin AFB, near Pensacola on the Gulf Coast. The rent is a little steep ($1550) but includes utilities, lawn maintenance, 24 hour maintenance, and access to base amenities. The article mentions 2, 3, and 4 bedroom homes and it is not clear if $1550 is the starting rent or applies to the largest home. I would assume that security would be tight, perhaps another plus.


Retirees, civil servants now eligible for base housing - Top Story - Northwest Florida Daily News
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Old 03-01-2015, 01:46 PM
 
71,584 posts, read 71,730,589 times
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Quote:
Originally Posted by Escort Rider View Post
My question is beside the main point. (I agree that if one is taking the standard deduction, then all of the mortgage interest is simply a cost.)

But my question is, how do you know that "most" homeowners don't have enough itemizable deductions to exceed the standard deduction? I'm not saying you're wrong, as I have no data on that. The IRS must keep statistics on that sort of thing, but I've never seen them. So this is just curiosity on my part.
who itemizes really is based on state and income level. but looking at income numbers

homeowners with 40k or under in income 24% itemize

40-75k 66%

75-125k 86%

125-250k 98.4%

over all 66%.


but if you are going by sheer number of people in each bracket than most fall out between 40-125k so the actual numbers would be under 50% of homeowners itemize

http://economics.mit.edu/files/2525

Last edited by mathjak107; 03-01-2015 at 02:13 PM..
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Old 03-01-2015, 03:56 PM
 
2,294 posts, read 1,561,151 times
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Quote:
Originally Posted by freemkt View Post
Some people get to have their cake and eat it too - like her landlord.
Again, often one of the great myths of the advantage of home ownership.
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Old 03-01-2015, 04:34 PM
 
Location: 49th parallel
2,611 posts, read 1,362,669 times
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I have been there and done that - all of it. I have owned and sold a house which was new and sold two years later for 200% of my purchase price, and done no maintenance on it. I have owned a condo in what was an appreciating area, and over the 5 years we owned it, was smacked with approximately $25,000 of necessary maintenance improvements in the building, paid out hundreds of dollars every month in ordinary maintenance fees, and sold it at the end for a few dollars more than we bought it for, after having put $15,000 into renovations on it. I have rented a 2 bedroom on a month-to-month basis (their customary type of rental), putting $1,000 every month in rent into it but had the ability to move when we liked. Washer/dryer down the hall, however, a negative for me. I have rented a brand new 2 bedroom for a handsome rent and was happy to pay it because there was nothing to do but lock the door and travel if desired. I have rented a tiny apartment which turned out to have major problems, un-noticed before rental, which were very slow in getting fixed. I now own a house which I will try to sell this spring but which I know will be listed for about what I paid - that's the market in this area. Whatever I have put into it - roof cleaning, yard man, new tiles in kitchen, etc., is down the drain, not to mention insurance and real estate taxes, which are not inconsiderable here, and the loss of interest dollars on the cash used to purchase the house.

The neighbor from hell? You don't have to be in an apartment to have him near you. In an apartment you can complain and this often gets him taken care of; in a house you can't force him to sell. You can only sell your own place.

I think there are good and bad points to each - but I guess on balance, for me at least, communal living of some sort is the best at my advanced age. No need to fall off the ladder if I don't have to.
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