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Old 08-13-2012, 06:36 PM
 
Location: Las Vegas, NV
5,778 posts, read 13,174,742 times
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Quote:
Originally Posted by ragnarkar View Post
At about $3.50 a gallon, my gas usage is roughly $100 a month, roughly 5% of my take home pay. It would need to rise to $7/gal for it to increase by another $100/mo. It would need to rise to about $4.40/gal to bump up my gasoline spending to about 6% of my take home pay.

While I can sympathize with how many people do not welcome higher gas prices in the first place, I still fail to see the math behind how so many people (mainly in the news) are unable to make ends meet when gas prices rise from, say, $3.50/gal to $4/gal. From how I see it, it may be bad but it's a far cry from catastrophic.
Right now, I dont make much money ($9.15 per hr, part time but hey I'm only 22) but I would say gas is about 13-15% of my take home pay which would be anywhere between $30-$40 a week in gas. I drive a lot more than I need to, but my car averages about 25 mpg and has a 20 gallon tank. I try to limit my driving to about 250 miles per week, about 100 miles a week is to and from work, the other 150 is more "discretionary" driving, trips to Downtown Orlando to have drinks (36 miles round trip) and the rest is to friends houses, I spend very little time at home

Even so, the amount of gas I spend isn't insanely expensive IMO
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Old 08-13-2012, 07:02 PM
 
Location: Bedrolls now in NM and in TX.
13,119 posts, read 18,033,183 times
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This thread reminds me of a conversation I had years ago with a young saleswoman at a checkout in a clothing store in Lubbock, Texas. I asked her if her personal economy was affected at all by the area's cotton production. She seemingly thought very deeply, then answered, she didn't think so even though the Texas High Plains has had for many years the greatest concentrations of cotton production in the world. The City of Lubbock is a town in a cotton field.

The price of gasoline most certainly affects rent prices. If it costs me an extra $50 a month in gasoline to see after my rental, guess who will pay most, if not all, that extra cost? Additionally, most internet companies use utility trucks to carry their tools and equipment. As operating costs increase for an internet company so will their fees for installation, new equipment and services.
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Old 08-13-2012, 07:07 PM
 
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the problem is no matter what expenses come down the pike you cant always recapture it.

wouldnt it be great if we could get 2 different rents as landlords because i have a mortagage on my building and you dont?

there isnt always a link to raising the rent as expenses change. at times we see our income shrink same as alot of businesses do who cant pass along every increase.

we can only do what the market and competitors do . leases, the amount our tenants can afford and the cost of finding new ones can make passing along every expense not paractical.

are you going to take a cut in rent if oil plummets like it did in 2008?
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Old 08-13-2012, 07:13 PM
 
1,642 posts, read 2,763,823 times
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Quote:
Originally Posted by High_Plains_Retired View Post
This thread reminds me of a conversation I had years ago with a young saleswoman at a checkout in a clothing store in Lubbock, Texas. I asked her if her personal economy was affected at all by the area's cotton production. She seemingly thought very deeply, then answered, she didn't think so even though the Texas High Plains has had for many years the greatest concentrations of cotton production in the world. The City of Lubbock is a town in a cotton field.

The price of gasoline most certainly affects rent prices. If it costs me an extra $50 a month in gasoline to see after my rental, guess who will pay most, if not all, that extra cost? Additionally, most internet companies use utility trucks to carry their tools and equipment. As operating costs increase for an internet company so will their fees for installation, new equipment and services.
I've had these discussions as well, but I usually get looked at like I clubbed a baby seal during them, because I honestly haven't noticed the hit to our budget. We make good money after tax, but not an exorbitant amount. Even when I was feeding 3 vehicles at the pump (Camry, Jeep and a 600cc sport bike), I didn't see a noticeable hit at the bank. I think at the high point, the Jeep cost me an extra 8-10 bucks to fill up, that was negligible to me. Half the time I don't even look at what it cost me. Same with groceries...we're still buying the same food, and still paying about the same, +/- a couple bucks. All in all, negligible. YMMV, of course.
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Old 08-13-2012, 07:19 PM
 
85,572 posts, read 83,022,350 times
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many things have gone down or not increased as much as they typically would. except for some foods, energy and medical costs the cpi is down quite a bit.

the biggest expense, housing costs have fallen alot. anyone who recently bought or refinanced saved a bundle from what was.

as high as we think rents are they should be way higher then they are in many areas as there is still a big disparity between renting and buying. here in nyc renting is 30% cheaper than buying for the most part.

we each have our own personal cost of living and thats very different from the cpi. my next door neighbor has no car, a rent stabilized apartment and is almost uneffected by energy costs compared to someone who has a family of 4 and they all commute with their cars to work or school.

what we buy, how many times we buy it and the quality level of what we buy all make up our own cost of living index. its different for each one of us.
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Old 08-13-2012, 07:26 PM
 
Location: Las Vegas, NV
5,778 posts, read 13,174,742 times
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Quote:
Originally Posted by mathjak107 View Post
many things have gone down or not increased as much as they typically would. except for some foods, energy and medical costs the cpi is down quite a bit.

the biggest expense, housing costs have fallen alot. anyone who recently bought or refinanced saved a bundle from what was.

as high as we think rents are they should be way higher then they are in many areas as there is still a big disparity between renting and buying. here in nyc renting is 30% cheaper than buying for the most part.
Here in Orlando buying is cheaper, back in 05-06 when the market was real hot, it was the other way around.

A co-worker of mine recently purchased a home for $130,000, 6 years ago it would have been around $400,000 Mortages are now $800-$900 a month for homes like those, while rent would be around $1400 for a similar sized home, and he lives in whats considered an upper middle class area. Another coworker of mine recently purchased a bank-owned townhouse for $20,000 and she's only 21 yrs old!

If I had $10,000 for a down payment, I'd buy a house but sadly I dont
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Old 08-13-2012, 08:01 PM
 
Location: Bedrolls now in NM and in TX.
13,119 posts, read 18,033,183 times
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Quote:
Originally Posted by mathjak107 View Post
the problem is no matter what expenses come down the pike you cant always recapture it.

-------

are you going to take a cut in rent if oil plummets like it did in 2008?
When expenses go down, I can either make back what I lost when expenses went up or I can work with my tenants to lower their own expenses. I have done both. It's primarily up to the tenant. If they think I am their enemy and treat me as such, I can very easily oblige them.
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Old 08-13-2012, 08:10 PM
 
85,572 posts, read 83,022,350 times
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Quote:
Originally Posted by DavieJ89 View Post
Here in Orlando buying is cheaper, back in 05-06 when the market was real hot, it was the other way around.

A co-worker of mine recently purchased a home for $130,000, 6 years ago it would have been around $400,000 Mortages are now $800-$900 a month for homes like those, while rent would be around $1400 for a similar sized home, and he lives in whats considered an upper middle class area. Another coworker of mine recently purchased a bank-owned townhouse for $20,000 and she's only 21 yrs old!

If I had $10,000 for a down payment, I'd buy a house but sadly I dont
Thats my point.our own personal rates of inflation are all very different.

The cpi is only a price change index on a basket of stuff.it may have no real world match to your own cost of living.

I own uso an oil stock.i profit from rising oil prices. That has offset just about all the rise in my driving costs. This is a question that each one of us has a different answer for.
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Old 08-13-2012, 08:42 PM
 
Location: Bedrolls now in NM and in TX.
13,119 posts, read 18,033,183 times
Reputation: 25480
Quote:
Originally Posted by DavieJ89 View Post
Here in Orlando buying is cheaper, back in 05-06 when the market was real hot, it was the other way around. Another coworker of mine recently purchased a bank-owned townhouse for $20,000 and she's only 21 yrs old!

----------------

If I had $10,000 for a down payment, I'd buy a house but sadly I dont
Three years ago I bought a 20-acre farm for a little more than that townhouse. It was a bank-owned property that cropped up just as interest rates on savings were bottoming out. I decided land was a better place to park some money than a bank. The Feds have yet to learn how to print land. Maybe it was a smart move. Beyond the piece of mind and solitude the place provides, rural land prices have been going up since I bought the place.

My home in Albuquerque lost a bit in the downturn but now prices seem to be coming back. Hopefully mortgage rates will remain low so the local market continues to grow.

Ten thousand dollars is not much to save these days. Since you realize you need to buy a home, you'll no doubt get it done.
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Old 08-13-2012, 11:44 PM
 
Location: DFW
6,866 posts, read 12,741,949 times
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Quote:
Originally Posted by Themanwithnoname View Post
Internet service truck uses gas

Infrastructure is made, put in place, and serviced by gas.

Workers (And the increases they face) are built into the cost of internet...

All of this detracts from profits, which results in price increases.

Rent:

Cost of materials for repairs goes up, your landloards costs (See above) goes up, corresponding inflation goes up, etc.


Almost EVERYTHING YOU USE requires oil in it's production, transportation, and servicing.
So it's built in all along the way.

Look up Value Added Tax and correlate.

This is why some of us are fans of locally produced foods and materials.
Transporting straw men costs a small but real amount of fuel.
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