Home buying thread
- Thread starter Pasteton
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Guest, it's time once again for the massively important and exciting FoH Asshat Tournament!
Go here and give us your nominations!Who's been the biggest Asshat in the last year? Give us your worst ones!
Jysin
Ahn'Qiraj Raider
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JFC.
Only a half million a year in property taxes! God knows how much it costs in upkeep on something like that.
AladainAF
Best Rabbit
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In 2009 it was 150k in property tax. Goes to show you how fucking crazy shit is around here.
Property taxes in Texas have gotten outta hand like a mother fucker. I always love our government, playing on the people, "Oh they only go up about $20 per year for the average home owner". Yeah, okay. Ignoring the fact that you boost the tax assessment of the property every fucking year by over 10% year over year.
People are so stupid, I swear.
Cad
scientia potentia est
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I think the reason it was so low in 2009 was because the guy bought the lot next door which either had no house or they demolished what was on it, so it was just dirt. 3-4M of dirt, but yea. The tax rolls don't adequately capture what happens when you combine lots like that.
I think they are capped at 10%. But yea if your appraisal is going up 10% every year and its justified by comps, thats one of those good problems... not sure why that would be something you'd want to complain about.
"Holy shit man my assets are appreciating so fucking fast, I can barely afford the 2% tax on the increase!"
AladainAF
Best Rabbit
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Rental properties aren't subject to the 10% limit. White people problems basically.
One of my houses went from 66k to 163k in 5 years with a fucking insane jump this year. Sure, the appreciated asset is nice, but it still wrecks havoc going up so quickly when you're renting them out.
Cad
scientia potentia est
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Nester
Vyemm Raider
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Have been keeping an eye on the market, its crazy insane with 20% increase over the last year.
Saw a house i liked for sale last year when i was not ready, noticed the same RV parked on the side this year, it did not sell.
Knocked on door, turns out i know the guy. he has lived in the house for 28 years. was going to put it up for private sale next month.
Made him an offer. we are going to sign a formal deal tomorrow. half an acre in the good neighborhood with tons of parking and a pool for Bikini time with Mrs Nester.
Its sweet because most sales are multiple offer situations, this was me and a guy i knew sitting at his kitchen table.
Pool needs a new heater and liner, he is going to install before we take over. Will buck up and make the switch to salt water.
Funny part, i grew up in the house next door, he was my neighbor during my teenage years.
Mine goes up for sale next week, its a sellers market here.
Saw a house i liked for sale last year when i was not ready, noticed the same RV parked on the side this year, it did not sell.
Knocked on door, turns out i know the guy. he has lived in the house for 28 years. was going to put it up for private sale next month.
Made him an offer. we are going to sign a formal deal tomorrow. half an acre in the good neighborhood with tons of parking and a pool for Bikini time with Mrs Nester.
Its sweet because most sales are multiple offer situations, this was me and a guy i knew sitting at his kitchen table.
Pool needs a new heater and liner, he is going to install before we take over. Will buck up and make the switch to salt water.
Funny part, i grew up in the house next door, he was my neighbor during my teenage years.
Mine goes up for sale next week, its a sellers market here.
- 2
Need some home buying opinions from you folks that I can pass on to my retired parents.
My parents are retired and are looking at buying a home in a retirement community. Their financial adviser suggests they take out a home loan (15 or 30 year fixed) to buy the house, instead of pull money from their retirement fund. It just seems odd to me that they'd suggest a loan (where you pay mostly interest the first X years and minimal of your monthly payment goes towards the principal) as opposed to paying a 25% tax penalty by pulling the money from a retirement account and buying the house outright. Adviser also said they could forgo the loan and just stay where they're at (they rent right now) another 5 years and save money in a savings account to pay for the house (thereby avoiding any tax penalty for pulling from a retirement fund and or any mortgage loan interest).
I'm not at all an expert in this, but it just seems off. Apparently I don't understand tax laws. If they pull out $150k and pay a 25% tax penalty thats about $37k up front but then they are free and clear. If they stay in their rental another 5 years to save up, that's almost $60k in money "wasted" paying rent each month. If they take out a mortage with a bank their payment would be about $1000 a month, but close to $700 (I'm guessing) of that goes towards interest for the first 10+ years. Hypothetically, if they then turn around and sell at 10 years into the loan (bad health or pass away, etc) then they would have made almost $120k in mortgage payments, with probably only about $40k going towards the actual principal (therefore "losing" almost $80k to mortgage interest).
So, someone tell me I'm an idiot and why taking money from their retirement fund and paying a 25% penalty isn't the obvious choice for them.
My parents are retired and are looking at buying a home in a retirement community. Their financial adviser suggests they take out a home loan (15 or 30 year fixed) to buy the house, instead of pull money from their retirement fund. It just seems odd to me that they'd suggest a loan (where you pay mostly interest the first X years and minimal of your monthly payment goes towards the principal) as opposed to paying a 25% tax penalty by pulling the money from a retirement account and buying the house outright. Adviser also said they could forgo the loan and just stay where they're at (they rent right now) another 5 years and save money in a savings account to pay for the house (thereby avoiding any tax penalty for pulling from a retirement fund and or any mortgage loan interest).
I'm not at all an expert in this, but it just seems off. Apparently I don't understand tax laws. If they pull out $150k and pay a 25% tax penalty thats about $37k up front but then they are free and clear. If they stay in their rental another 5 years to save up, that's almost $60k in money "wasted" paying rent each month. If they take out a mortage with a bank their payment would be about $1000 a month, but close to $700 (I'm guessing) of that goes towards interest for the first 10+ years. Hypothetically, if they then turn around and sell at 10 years into the loan (bad health or pass away, etc) then they would have made almost $120k in mortgage payments, with probably only about $40k going towards the actual principal (therefore "losing" almost $80k to mortgage interest).
So, someone tell me I'm an idiot and why taking money from their retirement fund and paying a 25% penalty isn't the obvious choice for them.
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Nester
Vyemm Raider
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That thing your guessing about is the whole thing. You have to do the math.
A $150,000 mortgage with a $1000/m payment at 3%, is paid off in 15.8 years.
After 10 years all things constant you will have paid $120,000. $87,579 in principle and $32,421 in interest.
Your new loan balance is $62,421. it will be gone in 5.8 years
$150,000 invested (ie not withdrawn) at a conservative 5% after 10 years will be $247,299.72, almost $100k earned assuming tax sheltered.
He is right.
A $150,000 mortgage with a $1000/m payment at 3%, is paid off in 15.8 years.
After 10 years all things constant you will have paid $120,000. $87,579 in principle and $32,421 in interest.
Your new loan balance is $62,421. it will be gone in 5.8 years
$150,000 invested (ie not withdrawn) at a conservative 5% after 10 years will be $247,299.72, almost $100k earned assuming tax sheltered.
He is right.
- 4
Any recommendations on what mortgage lender to look into that approves manufactured home loans on leased land (it's a 55 and over retirement community)? Parents have tried 3 places so far and all of them flat out don't lend for that kind of a mortgage even though my parents can pay back the loan 4x over from current retirement account savings
Cad
scientia potentia est
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Vinen
God is dead
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Cad
scientia potentia est
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Yea my mom complains about my house too, since it is 3 stories. I have an elevator but I don't want to get it inspected yearly so its currently disabled. Lol
Cad
scientia potentia est
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Cad
scientia potentia est
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They don't, but when it's built you have to have an elevator permit. Its registered with the town. Some gay shit. I never wanted to use it and they just kept it powered off since I moved in.
Big_w_powah
Trakanon Raider
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