Please register to participate in our discussions with 2 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.
Nope, what does he know? The guy trying to sell his split in Holbrook for 500K will tell you "it's always gonna go up!!".
Right.
That being said, to play devils advocate, if this kind of news keeps getting out and prices continue to stagnate or fall, it will start to make sense to buy again soon, as the demand for rentals will soar, as will the prices, and the playing field will be leveled.
What? He owns a home in Holbrook? How much is it really worth? The BofA CEO? That can't be right.
Who knows? They may be writing it off on their taxes, or they may not haha. The true issue here is that you don't have to pay extra for it if it is all included.
ROTF. Or giving it to you for free out of the goodness of their heart. /sarcasm off
What would you say to the person who bought their home 4,5 or 6 years ago? Sorry...sucka
Consider it luck, not a winning investment. You may think you appreciated 79% but take into account interest spent after tax on mortgage payments, still up 79%? Only up 79% if you bought the house outright for cash - no debt incurred.
THe same thing I tell myself if I buy a stock that goes down: hold it or take a loss. Homeownership is NOT a short term investment. It would be wonderful if we could all buy homes, or stocks, at the bottom and sell at the top but it is impossible to time. Someone who bought 4, 5, or 6 years ago is going to either have to wait it out or suck it up and pay it off, because they've incurred a debt. Or if they are dirt bags they can walk away. Rather than rolling your eyes and being bitter about whatever it is your plight is, man up and make a plan. By the way, I bought my home in 88 and it IS up 150% even with the downturn. And yes, it is actually up 150%. I paid off half the mortgage on my first home in less than 8 years, and paid the second home off in 12. It's called deferred gratification. Now I can buy a nice car without having that payment IN ADDITION to a mortgage.
We bought our first for $108K. It was valued at $130K. We put another $30K in upgrades and rebuildingthe interior from the studs out. Taxes started out at $1900 a year. When we left the house taxes were $4000 a year and it was valued at $60K. We lived there 6 years. We will probably never own another house.
The taxes seem to always to eat away at the appreciation. If the house were to actually appreciate 5% the taxes paid would greatly reduce the profit margin...every year we paid taxes, we were just out that much more. In ten years time we would have paid $40K in taxes and the house (all things being equal) might have appreciated $45K? where is the rationale in owning real estate? It is not like when my parents bought a house for $20K and 30 year later it is worth $125K--but then again they paid nearly $5k annual taxes for more than 15 of those years...
Real estate historically does appreciate at about 5%. I'm sure you deducted your taxes and the mortgage interest. Have you factored that into you equations? I don't see it. Even so, you would have paid 40K in taxes and even if the house appreciated 40K when you sold you have the money from selling your house. Something renters conveniently forget.
It is different if you bought your house in 1987 or 1988 and it is paid off now......I am really talking about buying a house TODAY in the present time if you are a young person in your late 20's or early 30's struggling to make 50K a year trying to save 100K for a house down payment....
Plus, NOT ALL rents go up every year. If you have a good repoire (did i spell it right? lol) with your landlord, you can convince him to keep the rent the same or risk losing a good, quiet tenant. There are certain bargaining chips you can use if you are smart.
And as someone else said, a small rent increase of say 25 bucks a year (maybe from 1100 to 1125 say) is not the same as the compounded increases of property, school, and insurance taxes every year if you own a house...
I bought in 88. And believe me, it was just as dismal then as it is now. How do 16% interest rates sound to you? It sure puts a crimp in your spending power, your ability to sell a house to someone else, your ability to qualify for a loan. How does saving up 20,000 sound when you're making 25,000 a year? If you are a young person in your late 20s you should have been doing what I did: I socked away money from the time I was a teen, by 24, when I bought my first house, I had 35,000 saved. I lived at home.
What would you say to the person who bought their home 4,5 or 6 years ago? Sorry...sucka
Consider it luck, not a winning investment. You may think you appreciated 79% but take into account interest spent after tax on mortgage payments, still up 79%? Only up 79% if you bought the house outright for cash - no debt incurred.
Silly, every winning investment is luck these days. My house doubled in value and dropped 25%. Approx 75% growth. By all definitions a good investment. That's a fact, luck or otherwise. I am in a good location, made modest improvements. The house itself is a good investment. The taxes and building department organized crime bureaucracy are a criminal enterprise that may force me to jettison a good investment and sell out but that has nothing to do with the house itself. LI is eating itself, driving the middle class into lower class and turning into Maspeth without the industry.
So I say "sorry Sucka" to anyone who lives here!
BTW, I'm pretty sure the "interest paid" is tax deductible. The taxes are not.
You don't have to buy a 400K house. There are plenty of houses out there on LI for 200K, they may not in the neighborhood you were hoping for but they exist. A lot of them are not bad either, and if you can get past the image of certain neighborhoods that's been implanted in your head since you were a child you'll find that you can have a nice place to live without selling your soul to a bank.
welp, I'm in my early 30's and just paid almost 500K for my house, 20% down, closing costs, renovations, and other ridiculousness. we sold our coop in queens at a loss, so we had to actually save this money while paying mortgage and maint. fee. we purchased here because we simply could not afford to purchase a house in Queens ( bayside, little neck) where hubby and I grew up.
we were going to rent , but these LL wanted 2K for rent and we had to pay all utilities! plus we have two babies, and LL didn't seem to like that LOL we figured , better off moving to Long Island, we won't pay city income tax anymore (killer!) we will pay $$ for property tax but At least we get to write it off, and the schools are better here ( or so I hope!)/ Plus rent goes up every year
it's so easy to say, just leave! but where will we go? Hubby works in the city, I was working on LI, it's not so easy. So I will stay and Beotch about my bills until I find a better solution. my biggest complaint is my heating oil bill but that's another thread
You have summed up my dilemma very nicely. A landlord can give you 30 days notice and you are now in a panic to find a home to move to. And moving is not easy in the slightest.
I also have rented since I can remember......but now that the interest rate is still reasonable, I would like to buy for the same reason outlined earlier like a backyard......bbq at any hour of the day......good schools.
We thought about buying in Queens also......but the schools in LI I believe are better than the public schools in Queens.
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.
Please register to participate in our discussions with 2 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.
