Financial Security

[jimk29]

I will be trashing your county this weekend along with half of north jersey and staten

what do you mean trashing it?

[ghhhhhost]

my question to the re gurus here, is WHY has re increased in value so much? i mean its the same old bldgs they were ten years ago, but over the past five years theyve increased in value by a quarter, half or double their their value... why? because rates have gone so low? .

because the areas that have seen the most appreciation in the last couple of years have become the "sexy" places to live in. due to giulliani..NYC is pretty much totally habitable..no more whores philandering down times square..and no more crack addicts and squeege men fightin for a piece of turf over in W.Chelsea.

the biggest problem in my eyes is the 'starving artist' phenomenon. artists who have little to no disposable income usually choose low income areas to inhabit. in turn...other artists flock to areas where artists live because art feeds off of other art and a small community forms. soon enough..the financial folk with their new found $$ want to feel "trendy" and "bohemian" so they follow the artists into their neighborhoods assuming they can just buy legitimacy by owning property and trendy clothing. property owners realize the kind of beast theyre dealing with..and try to cash out ASAP for Max profit..and drive the rents up in these areas slowly moving the artists out. this has happened in almost every "hot" neighborhood in NYC (lic..east vill..west vill...w'burg..park slope...and soon south harlem). this is the sole reason for the price boom in manhattan and soon enough artists will be moving further away from the city..leaving NYC a city of proffessionals, cooks and waiters.

[Guest onisakura]

because the areas that have seen the most appreciation in the last couple of years have become the "sexy" places to live in. due to giulliani..NYC is pretty much totally habitable..no more whores philandering down times square..and no more crack addicts and squeege men fightin for a piece of turf over in W.Chelsea.

the biggest problem in my eyes is the 'starving artist' phenomenon. artists who have little to no disposable income usually choose low income areas to inhabit. in turn...other artists flock to areas where artists live because art feeds off of other art and a small community forms. soon enough..the financial folk with their new found $$ want to feel "trendy" and "bohemian" so they follow the artists into their neighborhoods assuming they can just buy legitimacy by owning property and trendy clothing. property owners realize the kind of beast theyre dealing with..and try to cash out ASAP for Max profit..and drive the rents up in these areas slowly moving the artists out. this has happened in almost every "hot" neighborhood in NYC (lic..east vill..west vill...w'burg..park slope...and soon south harlem). this is the sole reason for the price boom in manhattan and soon enough artists will be moving further away from the city..leaving NYC a city of proffessionals, cooks and waiters.

And i bet that there are people living in those "sexy" areas that are new to the city that would never imagine that in their trendy neighborhoods, just a few years ago a crack whore (or 5) lived in their building.

And I was just thinking the same thing about the starving artists....how can they afford to live anywhere?? There is just no way. La vie boheme is slowly being squashed out - the good and the supposed bad. Artists, actors, singers and dancer flock to the city which has always been known as a mecca for the arts....but where can they live? Even working professionals are having a hard time affording anything in the city.

[ericknnj]

what do you mean trashing it?

Are you saying it is trash already. j/k I love the beach and generally a good summer renter.

[ericknnj]

if you are going to stay in one place for a bit and can efford a mortgage, having a mortage is definitely smart b/c of the tax write off. About half of a mortage is interest. So you can write off half of your mortgage over duration. A tax write off means you pay less taxes or the Government is helping you pay your mortgage.

1/2 (of your mortgage) x .28 (28% tax rate for most people) = .14

meaning the Government pays 14% of your mortgage. Thanx Uncle Sap.

Also, most properties should double every 15-20 years.

[growinupjersey]

thats because you prolly dont have any of the three...

then can you lend me some clothes dgmodel?

oh and whats your address??? I mail you some used condoms jerk off face.........

[Guest onisakura]

then can you lend me some clothes dgmodel?

oh and whats your address??? I mail you some used condoms jerk off face.........

Wow, just.....wow.

[growinupjersey]

Wow, just.....wow.

hahahahahaha.........hey its all in good fun, lol

[jimk29]

I mail you some used condoms jerk off face.........

I mail you?

jerk off face?

[growinupjersey]

I mail you?

jerk off face?

sorry i know your mr. proper so i gotta correct myself, " I'll " my bad. And yeah jerk off face, whats a matter you fucks dont listen to Dice Clay??? abugadahbugadeehhh ............ oh!!!

[jimk29]

sorry i know your mr. proper so i gotta correct myself, " I'll " my bad. And yeah jerk off face, whats a matter you fucks dont listen to Dice Clay??? abugadahbugadeehhh ............ oh!!!

Not since the 80's when he was popular.

[djjd11]

Let's see:

-- Own property: no, because it's not practical; why spend all your money on mortgage, maintenance, property taxes and repairs when you can rent a comfortable place and have plenty of disposable income?

-- Save for retirement: yes; have a healthy emergency fund in liquid savings too

-- Own business: no, because a corporate career is more rewarding financially and you don't have to work as much and as hard

-- Advanced degree: yes, MBA in progress.

-- Spend money clubbing: you've got to have a hobby, and it's not that much money... although I admit that I have to stop buying bottles all the time

-- Luxury vehicles: yes, you've got to reward yourself.

-- Getting old: mature and confident men don't care about 19 year olds and don't go to clubs to peep them; they go to hear the DJ and drink with their friends

I agree with everything you said, (especially the last thing) but your first comment. THE most practical thng a person can do with their money is buy property. Renting builds no equity , and is like throwing money out the window..........

[bigpoppanils]

I've thought about buying, but I think its going to have to wait until after grad school.

3 years ago I wanted to buy in Kensington, Ditmas Park or Clinton Hill, hold for 2-3 years, and then sell to pay for grad school...but by the time I got a good enough job I couldnt do it. oh well.

[dgmodel]

then can you lend me some clothes dgmodel?

oh and whats your address??? I mail you some used condoms jerk off face.........

Last edited by growinupjersey : 05-25-06 at 01:23 PM. <<< if thats the one you went with, id love to see the winner the original one was... that was the worst cyber-diss ive ever read...

my original post stands true, you dont have any of the three, and your retort proves me right.

[maxpetersky]

So in order to prove that you don't lose money renting because of current real estate market conditions in metro NYC, I did a much simplified comparison of rent vs. buy of my friend's 1-bedroom co-op in North Jersey. This is the mortgage calculator I used: http://www.hsh.com/calc-amort.html and this is the tax calculator I used: http://www.moneychimp.com/features/tax_brackets.htm

Assume that I make $100,000 a year, and I am looking for a place to live in the next 5 years. I can either buy that co-op for $250,000, which has a $1000 monthly maintenance or lease it for $1450 a month.

If I decide to buy the place, then I'd put 20% down (otherwise co-op wouldn't qualify me) and get a 30-year 6.25% mortgage for the remaining $200,000. This results in a monthly payment of $1231.43. With maintenance my monthly housing expense is $2231.43.

Since renting saves me $781.43 a month, I am going to save that into a tax-free fund that returns 5%. At the end of 5 years I am going to end up with $53,367.60 (see attached spreadsheet).

What happens if I buy:

-- I pay $10,000 closing costs right away

-- Let property taxes be 1/2 the maintenance charge, then I'd spend $30,000 for maintenance

-- Let property prices increase 5% a year, then at the end of year 5 my co-op would cost $319,070.40

-- I'd pay 3% to the real estate agent for selling it, so my cash on hand is $309,498.30

-- The balance of my mortgage would be $186,674.48, so I am left with $122,823.80

-- Deduct closing, maintenance and downpayment, turns out I made $30,823.80

What about deducting morgage interest payments and real estate taxes? I calculated tax benefits using the same spreadsheet (see attached). I assumed that I invest my tax refunds tax-free at 5%, then I'll end up with $28,051.02.

So if I rent my friend's apartment in 5 years I'll have $53,367.60. If I buy it, I'll have $58,874.82. Buying outperforms renting by about $5,500 over 5 years. Does that justify the enormous headache of owning and selling property?

[dgmodel]

So in order to prove that you don't lose money renting because of current real estate market conditions in metro NYC, I did a much simplified comparison of rent vs. buy of my friend's 1-bedroom co-op in North Jersey. This is the mortgage calculator I used: http://www.hsh.com/calc-amort.html and this is the tax calculator I used: http://www.moneychimp.com/features/tax_brackets.htm

Assume that I make $100,000 a year, and I am looking for a place to live in the next 5 years. I can either buy that co-op for $250,000, which has a $1000 monthly maintenance or lease it for $1450 a month.

If I decide to buy the place, then I'd put 20% down (otherwise co-op wouldn't qualify me) and get a 30-year 6.25% mortgage for the remaining $200,000. This results in a monthly payment of $1231.43. With maintenance my monthly housing expense is $2231.43.

Since renting saves me $781.43 a month, I am going to save that into a tax-free fund that returns 5%. At the end of 5 years I am going to end up with $53,367.60 (see attached spreadsheet).

What happens if I buy:

-- I pay $10,000 closing costs right away

-- Let property taxes be 1/2 the maintenance charge, then I'd spend $30,000 for maintenance

-- Let property prices increase 5% a year, then at the end of year 5 my co-op would cost $319,070.40

-- I'd pay 3% to the real estate agent for selling it, so my cash on hand is $309,498.30

-- The balance of my mortgage would be $186,674.48, so I am left with $122,823.80

-- Deduct closing, maintenance and downpayment, turns out I made $30,823.80

What about deducting morgage interest payments and real estate taxes? I calculated tax benefits using the same spreadsheet (see attached). I assumed that I invest my tax refunds tax-free at 5%, then I'll end up with $28,051.02.

So if I rent my friend's apartment in 5 years I'll have $53,367.60. If I buy it, I'll have $58,874.82. Buying outperforms renting by about $5,500 over 5 years. Does that justify the enormous headache of owning and selling property?

excellent break down! way to stick to your guns, and back up your point. well done!

[ghhhhhost]

So in order to prove that you don't lose money renting because of current real estate market conditions in metro NYC, I did a much simplified comparison of rent vs. buy of my friend's 1-bedroom co-op in North Jersey. This is the mortgage calculator I used: http://www.hsh.com/calc-amort.html and this is the tax calculator I used: http://www.moneychimp.com/features/tax_brackets.htm

Assume that I make $100,000 a year, and I am looking for a place to live in the next 5 years. I can either buy that co-op for $250,000, which has a $1000 monthly maintenance or lease it for $1450 a month.

If I decide to buy the place, then I'd put 20% down (otherwise co-op wouldn't qualify me) and get a 30-year 6.25% mortgage for the remaining $200,000. This results in a monthly payment of $1231.43. With maintenance my monthly housing expense is $2231.43.

Since renting saves me $781.43 a month, I am going to save that into a tax-free fund that returns 5%. At the end of 5 years I am going to end up with $53,367.60 (see attached spreadsheet).

What happens if I buy:

-- I pay $10,000 closing costs right away

-- Let property taxes be 1/2 the maintenance charge, then I'd spend $30,000 for maintenance

-- Let property prices increase 5% a year, then at the end of year 5 my co-op would cost $319,070.40

-- I'd pay 3% to the real estate agent for selling it, so my cash on hand is $309,498.30

-- The balance of my mortgage would be $186,674.48, so I am left with $122,823.80

-- Deduct closing, maintenance and downpayment, turns out I made $30,823.80

What about deducting morgage interest payments and real estate taxes? I calculated tax benefits using the same spreadsheet (see attached). I assumed that I invest my tax refunds tax-free at 5%, then I'll end up with $28,051.02.

So if I rent my friend's apartment in 5 years I'll have $53,367.60. If I buy it, I'll have $58,874.82. Buying outperforms renting by about $5,500 over 5 years. Does that justify the enormous headache of owning and selling property?

cant argue w numbers..

my only questions are...what happens at the end when ur done renting? u own nothing..uve been giving someone else money. what happens if the place ur renting all of a sudden goes Co-Op (it happens alot) ..or ur landlord decides he wants to sell the place and u have to go..the expenses associated with that can push ur rent v buy calculaiton over a certain threshhold and alter ur whole analysis.

[clubber4eva]

Are you really arguing that it is better to rent then own?

so dumb

[msoprano]

very well put together but who pays 1,000 monthly maint fee.

Im currently looking for condos here on the island and for a condo in the 400,000 to 425,000 range the maint fees range from 195 per month to 350 per month.

Factor in the difference and your profit in owning has just increased by way more then the $5,000 that you calculated.

[dgmodel]

my sisters mnt. fee is about $1500 a month.

[msoprano]

my sisters mnt. fee is about $1500 a month.

thats nuts.

[bigpoppanils]

who pays 1,000 monthly maint fee.

co-op maintenence fees include real estate taxes, and typically heat and water.

it can easily add up to $1,000 a month.

[dgmodel]

thats nuts.

goes well with the owner...

[dbcooper]

bump