From 2012-2015, there has been more inventory than at any point in time from 1999-2005. Low sales growth is due to demand, not supply. Demand is low because buyers have insufficient incomes and assets – and this is due to demographics, debt and the Great Recession.
Prices ran up what 60-100% from 2012-2015. If that is your reason, renters will be driven to the ground. (If you claim low demand and prices are bat shit crazy) It's quite obvious that high housing price is due to shortage of real homes ()in desirable areas) and especially homes for sale (in desirable areas).
Revenue's take super majority in CA. (Thank goodness for Howard Jarvis)
Every tax increase in this country will pass if the threshold is 50%. I would think it makes sense to play the tax increase card during recessions. The money should come out of general funds which are healthy. If education is important, scrap something that is not important. You can't tell me everything needs to be fully funded.
Sorry, I don't but for a second a family like Bernie Sanders age 74 making 65K will pay 14.7% in federal income tax. (ETR for federal income tax only which excludes SS and medicare)
It's a prime example of facts need checking.
Second, the rate difference of 1%, there is no point and quite a useless argument anyway. Notwitstanding, I don't buy for a second a 74 year old married filer will pay 14.7% anyway
We all know why is rate is low. He's old, he's supports his spouse and he has very basic deductions everyone has. 27K in federal income tax (52K in federal/state/county) is a shitload of money taken from a 74 year old whom paid taxes for 55 years. The man paid enough.
On a depreciating asset, why would someone tie up their liquid funds and lose value, when they can get get a better return using OPM?
You are bringing up something this is irrelevant, quite impressive. Depreciating/Appreciating, you make up all the rules.
In the end, the decision is whether to pay off the mortgage to avoid the 3% cash net of tax, or deploy that cash somewhere for a return better than 3% net of tax. The person will own the home and ride with it regardless.
payment #1 and payment #360 is the same. Saying the bank owns you is quite a stretch. You basically ate them alive. Would you sign a 30 year lease with no rent escalation, hell fking no.
Freedom comes from financial independence, which is a function of wealth, which is asset less debts. All the rich ass mofo have huge debt and ALL the assets.
It's just my preference that I let the bank takes 80% of the house and me the other 20. Every asset in this world is own by some bank that takes the first 60%. With insurance, you would know that you are on the hook for the first 20% anyway. I can do that letting the bank take 80% all the same.
There is no dilemma here, there are plenty of choices than pay off a long term mortgage that costs less than 3%, net of tax.
If you think it is such a good deal, would you lend me 400K at 3% interest rate, fixed over 30 years? You have recourse and monthly payment, that's it. Hell fking no. So the debt is an asset like no other
Most people are better off paying their mortgage off and saving all that interest over X years. There is no better feeling than not owing anyone a penny, a free man!
I respectfully disagree. There is no worst feeling than owning the property 100%. If there is a flood/earthquake or other SHTF, you own it all. If the bank owns 80% of it, it is their problem. They have the house, you have all the money.
Based on Bernie Sanders long ass political career, his pension is worth at least $2M. He has more money than what he can do with. Bernie Sanders have no debt problem, he has a problem with too much money and not enough time.
Obviously I respect that he is running for president and quite not rich. Money/debt problems, hardly.
"With a family income of roughly $205,000 in 2014, Sanders and his wife Jane, who file their taxes jointly, are in the 28% tax bracket. But they claim deductions that lower their tax rate as a percentage of their adjusted gross income to 13.5%. The average filer, with an income of $65,021, pays an effective rate of 14.7%, according to the IRS."
The average filer is a single filer. At least compare family to family.
14.7% and 13.5% is hardly earth shattering. B Sanders paid more than 3x more tax in absolute than the normal Joe. Something is not comparing. A family with 65K in income sure as heck aint paying 14.5% in fed tax, more like 10%.
"The couple deducted $9,666 in state and local income taxes and another $14,843 in real-estate taxes, presumably on their residence in Burlington, Vt. "
That pretty much double their tax burden another 12% to 26%. So I'm sure that is well above avg.
(He's paying over $22,000 a year in mortgage INTEREST at age 74, what is he, NUTS!!!!) And he still HAS a mortgage at his age??? Really??
he's making 205K. the interest is productive as he has shelter and avoid something even more nuts in old age "RENT" If you are 74 and renting, that's a scary thought.
Where people go wrong is assuming that human behavior can be predicted on a spread sheet.
I don't think the elites are stampeding their ill gotten gains and college age kids out of Communist China because of a Spread Sheet Calculation.
Housing is more social science, not calculators. Been saying that since 2009.
Mostly, most don't understand location, location, location is in 2016 will be location X5 in 2026. The calculators have a basic flaw that don't understand people pay $$ for value and they sure will be a lot more.
Hi everyone. I'm Buster's spouse and we bought the house in 2011 for $935,000. Not only has living here been amazing it's also turned out to be the smartest decision we ever made. We have people knocking on the door asking us if we are interested in selling and according to the what's happened with homes of similar quality realtors say we could get between 1.9 and 2.1. (One house in the hood in dated condition went for over $1,300.00 a square foot and after the sellers purchased it they found out it needed major foundation work not caught by the home inspector.). Basically we've doubled our money of course you've gotta get out of the area or move way down to see it as cash in your pocket. Who knew that Bay Area real estate prices would soar through the roof but they did.
Thanks for pointing/proving out Patrick's calculator's are complete junk.