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 Baby Please |
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Posts: 3979 (07/21/08 9:44 AM) Baby Pees |
.40 including taxes and insurance.
A more useful number might be housing value per sq. ft. (fair market value divided by square footage). Doing it this way, $106. that doesn't seem right but whatever. |
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 Pahrump Mania |
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Posts: 1370 (07/21/08 9:46 AM) Registered user |
.55 per quare foot
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ilikelissie |
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Posts: 12957 (07/21/08 9:49 AM) Registered user |
Beefcake's way is the standard method for valuing real estate.
The first way is misleading and useless for any purpose other than calculating the percentage of your income you spend on housing. |
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nedloh3 |
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Posts: 4098 (07/21/08 9:55 AM) Registered user |
Under what circumstance is having a paid off house very dumb?
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ilikelissie |
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Posts: 12958 (07/21/08 10:00 AM) Registered user |
The circumstance where you bought it two years ago, paid it off this year, and lost 20% of its value.
You also need to sell it by the end of the week. |
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nedloh3 |
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Posts: 4099 (07/21/08 10:03 AM) Registered user |
So you should buy it two years ago, get the craziest financing you can find, watch it drop 20% & walk away from it?
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ilikelissie |
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Posts: 12960 (07/21/08 10:05 AM) Registered user |
If you want to be very dumb.
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Beefcake |
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Posts: 1156 (07/21/08 10:07 AM) Registered User |
Or if you pay off your house, but maintain other debt, or don't maximize your savings for retirement, education, etc.
Home mortgages are subsidized by the government through the mortgage tax deduction (assuming you itemize), so the effective interest rate on a mortgage is 3-4%, which is pretty easy to beat with either bonds or stocks. So for many people, it makes sense to keep a large mortgage and invest any excess cash in retirement or other investment funds, rather than paying off their house. |
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r |
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Posts: 3810 (07/21/08 10:11 AM) Registered loser
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TC is right. This is ridiculous. I am sure some of you have land too. Did you measure that? |
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ilikelissie |
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Posts: 12961 (07/21/08 10:12 AM) Registered user |
Land?
HAHAHAHAHAHAHAAAHAA!! |
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r |
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Posts: 3811 (07/21/08 10:14 AM) Registered loser
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Was it that funny? |
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ilikelissie |
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Posts: 12963 (07/21/08 10:15 AM) Registered user |
I have a small yard.
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r |
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Posts: 3812 (07/21/08 10:16 AM) Registered loser
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Loki small?
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ilikelissie |
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Posts: 12964 (07/21/08 10:18 AM) Registered user |
No no.....probably about 10 times Loki size.
That's still pretty fucking small. |
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nedloh3 |
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Posts: 4101 (07/21/08 10:23 AM) Registered user |
If you pay off your house & maintain other debt you are very dumb. I equate a paid off house with being debt free - maybe I shouldn't do that. Also, I
don't recall be able to itemize more than two or three years into my 15-year mortgage so I never bought that argument. .
I wanna buy some garages. |
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ilikelissie |
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Posts: 12969 (07/21/08 10:30 AM) Registered user |
Either way, your return on your home is not tied to interest rate you paid.
It's tied to the market and holding on to a home you own free and clear will always pay more than most investments in the long term. It's a bad time for flippers right now, but the ten year trend in real estate prices is still way up. |
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Beefcake |
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Posts: 1158 (07/21/08 11:10 AM) Registered User |
True, but the last 10 years have been very atypical.
Historically, housing prices track the inflation rate pretty closely. This makes sense, because the housing market is dependent on having new (young) buyers moving in to the market as the older homeowners move up (or out). The way housing is priced now, many young buyers are priced out of the market. In the short term, that problem was solved with various 'exotic' mortgages that let people buy houses they couldn't afford -- the market needed buyers to keep prices artificially high. And the high prices brought in housing speculators, which was a pretty new phenomenon. And we know what happened next. The housing market needs to decline or be stagnant for something like 20 years to bring prices back to where they should be. Anyone expecting big gains in the price of housing over the next 10-20 years is deluding themselves. |
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ilikelissie |
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Posts: 12977 (07/21/08 11:12 AM) Registered user |
Why doesn't anyone want to post the real value of their home?
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Shorty |
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Posts: 2354 (07/21/08 11:16 AM) Registered user |
Because isn't that regional? There's no way I could afford my house on either coast, cause it's 4300 sq feet with a huge yard and a pool. But if I
told you how much it cost, you'd shit, cause it was really cheap by coast cost of living.
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hwamf |
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Posts: 2472 (07/21/08 11:17 AM) FAQ bitcher |
I freeload these days!
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