For the people that sold their 2nd car
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Joined: Apr 2002
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From: Red Bank
Hey right now in northern NJ from what I am hearing it may be worth while holding your car as a depreciable asset rather than a house. They are saying that prices are down about 10%.
That being so, you take one year depreciation on your car at say $7000.00 of the 33k sticker or 10% of a $500,000 house and you lose $50,000. Thus the car is the smarter deal. You would save $43,000, enough to buy another S
Disclaimer: This is just a joke to show how wacky the real estate market is right now. I am not trying to say buying a car is an investment...
That being so, you take one year depreciation on your car at say $7000.00 of the 33k sticker or 10% of a $500,000 house and you lose $50,000. Thus the car is the smarter deal. You would save $43,000, enough to buy another S
Disclaimer: This is just a joke to show how wacky the real estate market is right now. I am not trying to say buying a car is an investment...
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Joined: Aug 2003
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From: Formerly PDX now Pewaukee
pmi, just plain BS......you're paying the mortgage company to convince them you won't default on your $xxx,000 loan.....you get nothing out of it. and dont let anyone tell you its required by law, its not, its the mortgage co just finding another way to make money and take advantage of a first time home owner.
if you dont have the full 20%, I would try to hit at least 10%, and then take out a fixed rate 2nd mortage on the remaining 10%. The interest is then tax deductable, and works out to be about the same $/mon as the PMI. So that would be 10% down, 80% first mortgage, 10% 2nd mortgage. Just watch out for variable rate 2nd's. My first 2nd mortg was like that, and increased from 5% to 8%, but I worked my ass off to get it paid off in 1 yr. Had I waited another year to have the full 20%, I still could not have been able to afford my place, because of the rising costs...
That allowed me to get into my first place. Like many others, I can now cite a large equity increase, about 100k in 1.5yrs, but of course thats just on paper. But instead of a 40k initial investment, it was a 20k initial investment. I have since moved from the first place, have a renter in place covering expenses, and bought a second place using the same 10/80/10.
But you're right, hitting 20% at todays prices is just about impossible unless you're making 6 figures and good at saving...and most people trying to buy their first houses, are early in their careers, and not making 6-figures, or good at saving....
if you dont have the full 20%, I would try to hit at least 10%, and then take out a fixed rate 2nd mortage on the remaining 10%. The interest is then tax deductable, and works out to be about the same $/mon as the PMI. So that would be 10% down, 80% first mortgage, 10% 2nd mortgage. Just watch out for variable rate 2nd's. My first 2nd mortg was like that, and increased from 5% to 8%, but I worked my ass off to get it paid off in 1 yr. Had I waited another year to have the full 20%, I still could not have been able to afford my place, because of the rising costs...
That allowed me to get into my first place. Like many others, I can now cite a large equity increase, about 100k in 1.5yrs, but of course thats just on paper. But instead of a 40k initial investment, it was a 20k initial investment. I have since moved from the first place, have a renter in place covering expenses, and bought a second place using the same 10/80/10.
But you're right, hitting 20% at todays prices is just about impossible unless you're making 6 figures and good at saving...and most people trying to buy their first houses, are early in their careers, and not making 6-figures, or good at saving....
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Oct 28, 2002 01:00 PM