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Summerland, CA
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In United States
Registered Feb 18, 2009

Eokram's most recent comments:

• On 8 Mar 2012 in A question for the math whizzes, Eokram said:

  Wow, people love talking about anything instead of MATH. Here goes...

  Assumptions:
  Fixed Interest rate of 4.0%
  $500,000 loan
  20% down

  vs.

  Renting the same place for $2000/mo

  lets look at living in the place for seven years and include Interest, tax, ins, water (something you generally don't have to pay as a renter) and extra maintenance. I assumed int and tax will be fixed (prop 13...) and ins, water and maint are subject to the same inflation as rent.

  At what inflation point do these break even?... With these assumptions it takes around 26% inflation to make owning break even in seven years.

  Of course I'm using the typical numbers from the little beach community where I live (Summerland, CA).

  If you go to someplace like Vegas where you can either rent a nice house for $1750, or buy it for $200,000... With all the same assumptions you can have NEGATIVE 8% inflation and come out ahead by owning.

• On 3 Nov 2011 in 2% Asset Tax Can Eliminate All Other Taxes, Eokram said:

  I like this idea a lot. I've always thought it is unfair that a hard working productive person is taxed more than as an idle rich person. I've never been a fan of income tax, because it discourages people to work hard and seek to make more income. Our current tax code forces people to get as rich as they can and then make all their money from dividends.

  I would consider dropping it to 1% (less scary) and adding a tax on pollution as in cap-and-trade.

  Then we are encouraging people to work hard, pollute less and do things with their money instead of sitting on it. Done, now lets go re-write the tax code.

• On 11 Jul 2011 in When to stop renting and buy?, Eokram said:

  If you are paying $2390 for an $850,000 house in an area you like - you are doing great. You are renting the house for about 3.4 percent of the appraised value. I would rather rent a house for 3.4% than borrow money to buy a house at 4.5%. At this point I think the odds of prices going up is about the same as prices going down.