Will76... financial question - Page 2 - GoFuckYourself.com

woj · 12-09-2010, 01:30 PM

50 real estate investors

woj · 12-09-2010, 01:41 PM

Real estate is great if it's going up, but if it's not, and you have to sell you can get burned badly... I have a friend who got a new job and had to relocate, had to sell the house quick, long story short, he couldn't sell it, had to pay mortgage for almost a year before a buyer with a reasonable offer came along... overall he lost like $50k on the whole deal... not fun at all..

I don't know about you guys but I would rather take a $50k hit on stocks, at least that is quick and painless, beats suffering for a year for sure... and it's not like you would ever have to sell stocks, you can always wait out a year or 2 for better prices to recover...

will76 · 12-09-2010, 01:54 PM

Quote:

Originally Posted by Sly

A couple hundred a month is plenty of money to "invest." Investing isn't just stocks and bonds, and many financial advisors even say that people should not consider messing with stocks and bonds until they have other vehicles completely maxed out... such as 401(k) and IRA. Both 401(k) and IRA offer really great tax benefits (which of course could be pulled sometime down the line.) Although in this situation, I think the thread starter is self-employed so he may not have access to the same exact vehicles as a company employee, but I do know that there are IRA like vehicles for the self-employed.

If you break down the math... sticking that $100 a month into a IRA should earn you more money than paying down your low interest loan. On top of that, the fund will continue growing exponentially over time... you aren't going to see that by paying off your house. And then the tax benefits as well...

With this argument you're going to have one group of people that cheer for paying off the house and another group of people that cheer for investing the excess money. Every math breakdown I have seen and done pushes towards investing, but it really depends on what level of risk the person is willing to take and what their long-term goals are.

Investments stomp houses long term.

You are talking about two different types of investing. he can't invest the money he thinks he is going to need in 7 years into a long term retirement plan. When you do that you going to pay penalties if you take it out before you are 59 1/2. It's not liquid.

A couple hundred a month invested towards your retirement is a great thing to do in general... in most cases, but not what we talking about here, different circumstances.

He is clearly risk adverse and not looking for something that will tie up his money long term. Actually he isn't even looking for something to invest into, he simply asked if he should pay more on the mortgage or not vs on the tax deduction. My comments in this thread have been directed to him as different methods work for different people in different circumstances.

will76 · 12-09-2010, 02:02 PM

Quote:

Originally Posted by Sly

And houses are a great guarantee?

he isn't buying the house as an investment, it is his personal residence and he already lives there. We are not talking about is buying real-estate better than investing in stocks.

you trying to compare apples and oranges.

The discussion is do you spend a couple hundred more a month to pay down your mortgage and save money on interest or do you pay the min amount each month, more on interest and try to make more money by investing that couple hundred into something else. Stock market = no guarantees. paying down your mortgage and getting a net savings of 4% is a guaranteed savings. You make the payments, you pay that much less in interest. Its simple math. I has nothing to do with house values. It has to do with his mortage, he pays his mortgage no matter what his house is worth. His interest doesn't go up or down based on the value of his home. Simply, taking that money and paying down the mortgage guarantees you a savings by paying less interest.

will76 · 12-09-2010, 02:16 PM

Quote:

Originally Posted by Sagi_AFF

We are right after a housing bubble burst and going through a bad economy. I think the risk that his house will be worth less than it is today in 7 years is also remote. I will concede however that if someone is risk adverse then they probably shouldn't try to invest all of their extra money. The reason is if they get scared they would end up selling at the worst possible time. Maybe the best thing for him is to do some early loan pay down and some long-term investments.

I don't think it will be worth less either but he hasn't answered my question yet on how much he put down. If he put down 20% he has more of a cushion if values do go down more. Also, I don't know how good of deal he got either, he could have paid more than he should have so he could be starting off at a bad point.

Allocating some money towards a long term retirement plan is a great idea even if he can spend a small amount per month. That is for another discussion. I'll close here with repeating my main thoughts, "investing the extra money" is bad for most people. Most people will lose that extra money one way or another. If they can afford it, it is simply safer for them to put it into reducing the amount of interest they are paying on their mortgage only if their mortgage is their highest interest rate expense. They need to start with credit cards, car loans etc.. anything that they are paying high interest rates on. Once you get all the high rates shit knocked out then you can put some more towards long term retirement. And if you don't know much about stocks, investments etc... and especially if you are risk adverse or using money that you can't afford to lose, putting it into reducing your mortgage payments would be better for most people.

Also, hell I don't even know if he is paying PMI, if so he needs to get his mortgage paid down enough so he stops wasting money each month on that. I was always a preacher of using the banks money to make more money and investing the difference, but i know it doesnt work for most people, especially when you talking about someone's primary residence vs commercial or investment type situations.

bossku icq me if you have any questions.

Sly · 12-09-2010, 02:17 PM

Ok Will... if the question is "do I take my extra money and put it towards my house or do I take my extra money and let it sit in my bank account?", then I will agree with you. Yes, put it towards the house so long as you have a little cash on hand in case of emergency (you don't want to pay for emergencies with credit cards if you don't need to.)

Overall though, I don't think that's full advice. But like you said, that does answer the question.

Penthouse Tony · 12-09-2010, 02:46 PM

Quote:

Originally Posted by will76

I don't think it will be worth less either but he hasn't answered my question yet on how much he put down. If he put down 20% he has more of a cushion if values do go down more. Also, I don't know how good of deal he got either, he could have paid more than he should have so he could be starting off at a bad point.

Allocating some money towards a long term retirement plan is a great idea even if he can spend a small amount per month. That is for another discussion. I'll close here with repeating my main thoughts, "investing the extra money" is bad for most people. Most people will lose that extra money one way or another. If they can afford it, it is simply safer for them to put it into reducing the amount of interest they are paying on their mortgage only if their mortgage is their highest interest rate expense. They need to start with credit cards, car loans etc.. anything that they are paying high interest rates on. Once you get all the high rates shit knocked out then you can put some more towards long term retirement. And if you don't know much about stocks, investments etc... and especially if you are risk adverse or using money that you can't afford to lose, putting it into reducing your mortgage payments would be better for most people.

Also, hell I don't even know if he is paying PMI, if so he needs to get his mortgage paid down enough so he stops wasting money each month on that. I was always a preacher of using the banks money to make more money and investing the difference, but i know it doesnt work for most people, especially when you talking about someone's primary residence vs commercial or investment type situations.

bossku icq me if you have any questions.

The part I have a problem with is that he is using money that he can't afford to lose. If he can't afford to lose it then that means he doesn't have much money elsewhere. So why trade a liquid form of money for something that he won't see until the he sells his house or gets 25 years into his loan? He might as well keep the money as cash and have it if he ever needs it to pay his loan or for any other surprises he has.

That should be his first priority with his extra money, build a 1.5 - 2 year emergency fund that can be used to pay all his monthly bills. Then if he invests the rest of it in something that is better than his effective 3.8% loan he'll still have liquid cash.

Kenny B! · 12-09-2010, 03:01 PM

Quote:

Originally Posted by Sly

Ok Will... if the question is "do I take my extra money and put it towards my house or do I take my extra money and let it sit in my bank account?", then I will agree with you. Yes, put it towards the house so long as you have a little cash on hand in case of emergency (you don't want to pay for emergencies with credit cards if you don't need to.)

Overall though, I don't think that's full advice. But like you said, that does answer the question.

I don't know who "they" is but "they" say you should have at least 6 months reserve in savings to be able to pay all your bills, I think 12 months is ideal because as we all know it can take time to get back up on your feet.

So never have all your eggs in one basket, or house in this case. It's hard topull the money out once it's in, banks in the states seem to be in bad place right now and refinancing for more isn't something they seem willing to do.

Listen to Sagi, never invest money you can't afford to lose, because at some point it'll happen, you never win on all bets.

I'm looking at picking up a couple rental properties in Phoenix, by my calculations I'll get about 5% on my investment plus any appreciation on the home, and if the USD$ ever goes up again I hope to make a gain there. Problem is it only works on cash deals and if the properties are rented, I would love to do it on a bigger scale but as a Canadian it's pay in full or sorry can't play at all.

will76 · 12-09-2010, 03:10 PM

Quote:

Originally Posted by Sagi_AFF

The part I have a problem with is that he is using money that he can't afford to lose. If he can't afford to lose it then that means he doesn't have much money elsewhere. So why trade a liquid form of money for something that he won't see until the he sells his house or gets 25 years into his loan? He might as well keep the money as cash and have it if he ever needs it to pay his loan or for any other surprises he has.

That should be his first priority with his extra money, build a 1.5 - 2 year emergency fund that can be used to pay all his monthly bills. Then if he invests the rest of it in something that is better than his effective 3.8% loan he'll still have liquid cash.

HELOC - I don't know why you missing that. Again depending on the situation, if he is paying more equity in his house, he guarantees that he saves money from having to pay as much in interest. There is a HUGE difference between paying down your mortgage and buying stocks. First of all he shouldn't use money he can't afford to lose - meaning its gone, the stock tanked he lost money. If he puts it into his house and has an emergency he call pull it back out through a HELOC, if he is worried about doing a HELOC then just pay the min each month and put more money in your emergency fund.

yes first thing to do is build emergency fund but 6 months is a good start. Then pay off all high interest debt, then put money away for retirement.

There is two ways to make money, you don't always have to make money by making money, you can also make money by reducing costs if you follow what I am saying. Sorry guys I really don't have time to debate this in *general* for his situation it is pretty clear what he should do.

Penthouse Tony · 12-09-2010, 03:17 PM

Can you get a HELOC if the value of the house drops or if he has a drop in income?

will76 · 12-09-2010, 03:53 PM

Quote:

Originally Posted by Sagi_AFF

Can you get a HELOC if the value of the house drops or if he has a drop in income?

Quote:

Originally Posted by will76

If he puts it into his house and has an emergency he call pull it back out through a HELOC, if he is worried about doing a HELOC then just pay the min each month and put more money in your emergency fund.

.........

Penthouse Tony · 12-09-2010, 05:12 PM

So the presumption is stocks can go up and down but you can always take a loan out? Interest rates go up and down too. I think it's fair to say that interest rates will likely go up from here. Stocks do go up and down but you can round that curve by investing in regular intervals. Plus over the long run you are still looking at historic returns of ~8%. My advise is emergency funds with enough to cover living costs including mortgage first then beat the 3.8% with an S&P 500 mutual fund or ETF.

HandballJim · 12-09-2010, 07:10 PM

if you don't plan on staying there I would not pay too much extra a month into it, 7 years is not a long time. I just got a co-op at 4.375% rate and were just going to pay an extra 100-200 towards the principle a month. Although we say were only staying there 10 years we could end up staying a lot longer.

my opinion is to keep as much cash in your pocket until this country's finances stabilize.

lagcam · 12-09-2010, 07:26 PM

Quote:

Originally Posted by will76

Don't think of this as paying it off sooner, you need to look at it as if I pay "X" number of years it will cost me "x" in interest payments. You have to pay principle no matter how long or slow you pay it back, you still going to pay 100% of principle. However, you can control how much damage they bank will do to you by charging you interest. You can control how much you will pay in interest by adjusting the length of time you borrowing the money and paying it off.

"loosing interest" that you can claim for taxes isn't a bad thing, because it means you paying less in interest. You don't want to pay more money in interest payments just to get write offs. An accountant is wired to think on how to help you reduce your tax burden, not help you save,invest, make money.

Being able to use the tax deduction is a benefit to owning a home (vs renting) but not a reason to paying tons of money in financing if you don't have to.

I would do this, go to http://calculators.interest.com/cont...ly-payment.asp and play with the numbers. Put in the loan amount and interest rate you paying. Try it at 30 years and make sure it confirms what you paying now so you know you got it right. Then put in 25 years, 20 years and look at the monthly payment. Also click "Show Amortization Table". This will show you how much you pay back in interest depending on how many years it takes you to pay off the mortgage.

200K - 30 year mortgage at 5.125% = monthly payment: $1089 total interest paid: $192,252

200K - 25 year mortgage at 5.125% = monthly payment: $1184 total interest paid: $155,313

200K - 20 year mortgage at 5.125% = monthly payment: $1334 total interest paid: $120,235

It comes down to this... how much are you comfortable a month paying. In the example above if you can swing $1334 a month vs $1089 you will save 72K over the next 20 years in interest payments.

99% of the time it is not wise to spend money just to get a tax DEDUCTION. Send me $1 I will give you .25 cents back ;) You would be better off not spending the $1. Now tax CREDITS are a different story.

The other thing to take into account since your interest rate is pretty low is.... do you feel confident that you can take that extra money and make more than about 8% return with it ? If you can then pay the min a month and invest the difference. If not, the safest and easiest thing to do is pay as much as you feel safe doing each month, save a ton on interest payments, and build equity in your house faster. If you need a loan in 5 years you will be able to get a HELOC if you been paying it off on a 20 year amort schedule, vs a 30 year. 5 years in on a 30 year repayment schedule you will have very little principle built up and likely wont be able to get a loan unless the value of your house shot up a lot.

Accountants are rarely the best people for financial advice, they look at things in the past mainly, and only look at one component, how to save you taxes and not a holistic approach taking everything into consideration.

I have to say, that is a very good answer.

BareBacked · 12-09-2010, 07:27 PM

Quote:

Originally Posted by Sly

I'm cool and I used the Google. Looks like you would save six years, not 13 or 15. There is even math.

http://www.mortgagecalculatorsplus.c...r-mortgage.php

Hopefully, this guy knows more about mortgages and math than being a real estate agent.

I a not a realtor or even good with math but I think the interest rate has something to do with it and the points etc

BareBacked · 12-09-2010, 07:29 PM

Quote:

Originally Posted by Sly

What does a 20% down payment have to do with a $200,000 loan? A $200,000 loan is a $200,000 loan. It doesn't matter what you paid on top of that as a down payment.

If your house was $200,000, you put down a 20% down payment of $40,000, you would then effectively have a $160,000 loan (assuming you did not add on another $40,000 to the loan just for the hell of it), not a $200,000 loan.

20% down = no PMI?
lol

BareBacked · 12-09-2010, 07:32 PM

Sly what % are you seeing on your IRA?

pimp3611 · 12-09-2010, 07:47 PM

Quote:

Originally Posted by Kenny B!

You Americans are so fortunate to be able able to write off your mortgage interest, we aren't so lucky in the great white north.

The only way we can deduct interest is if it's for an investment property, not our main residence.

Good on you will for putting so much time into your answers.

Incorrect. If you work at home it is indeed tax deductible.

DaddyHalbucks · 04-08-2011, 08:34 PM

Beyond this, you may want to consider the role of property taxes and other expenses. Some states are insanely expensive when you add up all of those factors.

Have you guys ever considered IDAH0? It is a beautiful state and priced reasonably. The Northern part of the state has some gorgeous lakes and forests.

Check out this link it isnt spam www.cbidaho.com

L-Pink · 04-08-2011, 09:03 PM

Get the lowest rate for the longest time and have a cheap monthly housing expense until you move or die.

.

will76 · 04-08-2011, 09:19 PM

Quote:

Originally Posted by Penthouse Tony

Can you get a HELOC if the value of the house drops or if he has a drop in income?

So Penthouse Tony is now using Sagi's old GFY nick. How lame that AFF made him start over with a new one. Sagi could have just as easily kept it and taken aff out of the name.

Vjo · 04-08-2011, 11:23 PM

In the US you can sell a house once per lifetime (primary residence) and not pay income tax (capital gain) on the house. Up to a certain amount, perhaps $300,000.

But only one time.

Thus if your parents, for example, end up in the end with no money and only the house, you sell the house, which all quickly goes to the assisted living/nursing home and/or medical assistance, then they suddenly die broke before tax time, the administrator and estate wont have a huge tax obligation on the house. This happens all the time.

will76 · 04-09-2011, 12:12 AM

Quote:

Originally Posted by Vjo

In the US you can sell a house once per lifetime (primary residence) and not pay income tax (capital gain) on the house. Up to a certain amount, perhaps $300,000.

But only one time.

Thus if your parents, for example, end up in the end with no money and only the house, you sell the house, which all quickly goes to the assisted living/nursing home and/or medical assistance, then they suddenly die broke before tax time, the administrator and estate wont have a huge tax obligation on the house. This happens all the time.

Pretty sure they did away with the "once per lifetime" and you can do it as many times as you qualify. It's 250K single, 500K married per instance, you have to live their for 2 years as your primary residence (i believe 2 out of the last 5 years). You can't do this more than once every two years. This is on capital gains meaning, profit. (how much you bought it for - how much you sold it for including other costs like improvements, real-estate agent commissions, closing costs etc. Situations like this are more likely for people who bought a house several years ago and paid it off and it has increased in value a lot over 15,20 years and then they sell it.

What in the world does this have to do with this thread though?

Also I believe there is a 2-3 look back when people go into govt nursing homes etc, so if you going to sell the house or whatever before you go, you better plan ahead 3+ years. Also, there is such a thing as a gift tax as well, so if your parents "give you the house" the children can still get hit with taxes. <- all of that is for an estate planner, something I am not well versed in.

shade001 · 04-09-2011, 12:26 AM

Adult webmasters giving advice on finance is about as funny as adult webmasters displaying their lack of knowledge about politics.

Or toilet paper, for that matter.

Will excepted, of course.

MrBottomTooth · 04-09-2011, 12:57 AM

Quote:

Originally Posted by pimp3611

Incorrect. If you work at home it is indeed tax deductible.

Only the portion that relates to the size of your home office.

MrBottomTooth · 04-09-2011, 12:58 AM

Quote:

Originally Posted by DaddyHalbucks

Beyond this, you may want to consider the role of property taxes and other expenses. Some states are insanely expensive when you add up all of those factors.

Have you guys ever considered IDAH0? It is a beautiful state and priced reasonably. The Northern part of the state has some gorgeous lakes and forests.

Check out this link it isnt spam www.cbidaho.com

Nice spam bump.

will76 · 04-09-2011, 11:05 AM

Quote:

Originally Posted by shade001

Adult webmasters giving advice on finance is about as funny as adult webmasters displaying their lack of knowledge about politics.

Or toilet paper, for that matter.

Will excepted, of course.

I'd agree with that statement the vast majority of the time on GFY. Everyone here is an expert on everything and knows everything. But a few of us actually do have some knowledge in other areas other than porn. Unlike most people I only talk about things that I actually know something about it, but i am far from an expert and I would always advise someone to seek a local "expert" for a second opinion before they do anything

woj · 04-09-2011, 11:13 AM

Quote:

Originally Posted by Vjo

In the US you can sell a house once per lifetime (primary residence) and not pay income tax (capital gain) on the house. Up to a certain amount, perhaps $300,000.

But only one time.

Thus if your parents, for example, end up in the end with no money and only the house, you sell the house, which all quickly goes to the assisted living/nursing home and/or medical assistance, then they suddenly die broke before tax time, the administrator and estate wont have a huge tax obligation on the house. This happens all the time.

if you know what you are doing you never pay tax on real estate sales...
1031 exchange FTW

will76 · 04-09-2011, 11:34 AM

Quote:

Originally Posted by woj

if you know what you are doing you never pay tax on real estate sales...
1031 exchange FTW

It;s not that simple and there is a lot of factors that go into a 1031 exchange.

First of all the "you never pay taxes on real estate sales" by doing a 1031 exchange is bullshit. The taxes are deferred, not avoided. Trust me you will pay them one day. You can't keep doing 1031 exchanges for eternity. Which brings up another good point, right now the capital gains tax is only 15%, there is talk of moving that up to 20% and with the amount of debt this country is in and the way it's heading I wouldn't be surprised in the future if capital gains tax is removed and the income from a real-estate sale is treated as ordinary income (25-35% depending on your tax bracket).

So while doing a 1031 exchange now you can avoid taxes for the time being but with the tax rate being so low now (15%) you may be better off taking the small hit now vs having that extra 15% to invest into a new property but take a much bigger hit down the road.

There are lots of rules with 1031 exchanges even if you wanted to do one. It has to be "like kind" of property that you are selling and buying and there is a time frame you have to do it all in. Also 1031 can only be used for property bought and sold for investment purposes so your "mom's house" or whatever he was saying in the previous post would not apply anyway.

DaddyHalbucks · 05-13-2011, 10:21 PM

The main thing with a 1031 is that you cannot touch the money, even for an instant. If you do, it becomes taxable.

I still think Idaho is a great place to go:

http://www.coldwellbanker-idaho.com

http://www.westvalleyrealty.com

http://www.revrealty.us

marlboroack · 05-13-2011, 10:39 PM

My brain is turned off at the moment. I did read #1 and #2. Seems Will knows his shit

V_RocKs · 05-14-2011, 01:45 AM

old shit.. but paying something off early is always smarter.

I bought my Jeep and they set it up so I'd owe approximately $10,500 in interest when I finished paying it off.

I paid $1000 to $2000 a month on it and when I paid it off I ended up paying only $700 in interest. That really pissed off the guy that collected my payment each month.

will76 · 05-14-2011, 10:27 PM

Quote:

Originally Posted by V_RocKs

old shit.. but paying something off early is always smarter.

I bought my Jeep and they set it up so I'd owe approximately $10,500 in interest when I finished paying it off.

I paid $1000 to $2000 a month on it and when I paid it off I ended up paying only $700 in interest. That really pissed off the guy that collected my payment each month.

paying something off early is not *always* smarter. In most cases for most people it very likely is, but not all cases. It really comes down to the interest rate and what else could be done with the money. For example, if you have a house loan with 4.5% interest rate and you have 20K in credit card debt at 20% interest. DO NOT PAY more towards your home each month. Pay the min and send the rest of that money over to paying off that high interest credit card debt.

Also, which is a whole nother topic, if you borrow money at a low rate like 4% but can invest the money and get a better return like 8% you would be better off investing the money instead of paying down a low interest loan early.

12-09-2010, 01:30 PM	#51
woj <&(©¿©)&> Industry Role: Join Date: Jul 2002 Location: Chicago Posts: 47,882	50 real estate investors __________________ Custom Software Development, email: woj#at#wojfun#.#com to discuss details or skype: wojl2000 or gchat: wojfun or telegram: wojl2000 Affiliate program tools: Hosted Galleries Manager Banner Manager Video Manager Wordpress Affiliate Plugin Pic/Movie of the Day Fansign Generator Zip Manager

12-09-2010, 01:41 PM	#52
woj <&(©¿©)&> Industry Role: Join Date: Jul 2002 Location: Chicago Posts: 47,882	Real estate is great if it's going up, but if it's not, and you have to sell you can get burned badly... I have a friend who got a new job and had to relocate, had to sell the house quick, long story short, he couldn't sell it, had to pay mortgage for almost a year before a buyer with a reasonable offer came along... overall he lost like $50k on the whole deal... not fun at all.. I don't know about you guys but I would rather take a $50k hit on stocks, at least that is quick and painless, beats suffering for a year for sure... and it's not like you would ever have to sell stocks, you can always wait out a year or 2 for better prices to recover... __________________ Custom Software Development, email: woj#at#wojfun#.#com to discuss details or skype: wojl2000 or gchat: wojfun or telegram: wojl2000 Affiliate program tools: Hosted Galleries Manager Banner Manager Video Manager Wordpress Affiliate Plugin Pic/Movie of the Day Fansign Generator Zip Manager

12-09-2010, 02:17 PM	#56
Sly Let's do some business! Industry Role: Join Date: Sep 2004 Location: Austin, TX Posts: 31,296	Ok Will... if the question is "do I take my extra money and put it towards my house or do I take my extra money and let it sit in my bank account?", then I will agree with you. Yes, put it towards the house so long as you have a little cash on hand in case of emergency (you don't want to pay for emergencies with credit cards if you don't need to.) Overall though, I don't think that's full advice. But like you said, that does answer the question. __________________ Vacares - Web Hosting, Domains, O365, Security & More - Paxum and BTC Accepted Windows VPS now available - just $50/mo Wanted: CCBill pay sites for sale

12-09-2010, 03:17 PM	#60
Penthouse Tony Confirmed User Industry Role: Join Date: Apr 2004 Location: Mountain View, CA Posts: 5,835	Can you get a HELOC if the value of the house drops or if he has a drop in income? __________________ aamos AT FFN dot com Penthouse.com Business Development ICQ: 49090846 \| Yahoo IM: ff_aamos

12-09-2010, 05:12 PM	#62
Penthouse Tony Confirmed User Industry Role: Join Date: Apr 2004 Location: Mountain View, CA Posts: 5,835	So the presumption is stocks can go up and down but you can always take a loan out? Interest rates go up and down too. I think it's fair to say that interest rates will likely go up from here. Stocks do go up and down but you can round that curve by investing in regular intervals. Plus over the long run you are still looking at historic returns of ~8%. My advise is emergency funds with enough to cover living costs including mortgage first then beat the 3.8% with an S&P 500 mutual fund or ETF. __________________ aamos AT FFN dot com Penthouse.com Business Development ICQ: 49090846 \| Yahoo IM: ff_aamos

12-09-2010, 07:10 PM	#63
HandballJim Confirmed User Industry Role: Join Date: Sep 2008 Location: NYC Posts: 4,024	if you don't plan on staying there I would not pay too much extra a month into it, 7 years is not a long time. I just got a co-op at 4.375% rate and were just going to pay an extra 100-200 towards the principle a month. Although we say were only staying there 10 years we could end up staying a lot longer. my opinion is to keep as much cash in your pocket until this country's finances stabilize. __________________ HOW I MAKE LOTS OF $$$

12-09-2010, 07:32 PM	#67
BareBacked Confirmed User Join Date: Feb 2007 Location: www.BareBacked.com Posts: 3,685	Sly what % are you seeing on your IRA? __________________ NEW SITE PAYING $30 for a $1 TRIAL Selfies

04-08-2011, 08:34 PM	#69
DaddyHalbucks A freakin' legend! Industry Role: Join Date: Feb 2004 Location: Las Vegas, Nevada USA Posts: 18,975	Beyond this, you may want to consider the role of property taxes and other expenses. Some states are insanely expensive when you add up all of those factors. Have you guys ever considered IDAH0? It is a beautiful state and priced reasonably. The Northern part of the state has some gorgeous lakes and forests. Check out this link it isnt spam www.cbidaho.com __________________ Boner Money

04-08-2011, 09:03 PM	#70
L-Pink working on my tan Industry Role: Join Date: Mar 2005 Location: Florida/Kentucky Posts: 39,151	Get the lowest rate for the longest time and have a cheap monthly housing expense until you move or die. .

04-08-2011, 11:23 PM	#72
Vjo So Fucking Banned Industry Role: Join Date: Oct 2002 Location: Happy 4th of July :) Posts: 6,082	In the US you can sell a house once per lifetime (primary residence) and not pay income tax (capital gain) on the house. Up to a certain amount, perhaps $300,000. But only one time. Thus if your parents, for example, end up in the end with no money and only the house, you sell the house, which all quickly goes to the assisted living/nursing home and/or medical assistance, then they suddenly die broke before tax time, the administrator and estate wont have a huge tax obligation on the house. This happens all the time. Last edited by Vjo; 04-08-2011 at 11:38 PM..

04-09-2011, 12:26 AM	#74
shade001 Confirmed User Join Date: May 2006 Posts: 396	Adult webmasters giving advice on finance is about as funny as adult webmasters displaying their lack of knowledge about politics. Or toilet paper, for that matter. Will excepted, of course.

05-13-2011, 10:21 PM	#80
DaddyHalbucks A freakin' legend! Industry Role: Join Date: Feb 2004 Location: Las Vegas, Nevada USA Posts: 18,975	The main thing with a 1031 is that you cannot touch the money, even for an instant. If you do, it becomes taxable. I still think Idaho is a great place to go: http://www.coldwellbanker-idaho.com http://www.westvalleyrealty.com http://www.revrealty.us __________________ Boner Money

05-13-2011, 10:39 PM	#81
marlboroack So Fucking Banned Industry Role: Join Date: Jul 2010 Location: ☣ Posts: 9,327	My brain is turned off at the moment. I did read #1 and #2. Seems Will knows his shit

05-14-2011, 01:45 AM	#82
V_RocKs Damn Right I Kiss Ass! Industry Role: Join Date: Dec 2003 Location: Cowtown, USA Posts: 32,405	old shit.. but paying something off early is always smarter. I bought my Jeep and they set it up so I'd owe approximately $10,500 in interest when I finished paying it off. I paid $1000 to $2000 a month on it and when I paid it off I ended up paying only $700 in interest. That really pissed off the guy that collected my payment each month.