================ Spike500; This is about the 1 in 500 times i may disagree with you. Maybe that man renting in NYC is saving for an upstate NY place with land like T.Jefferson. Might not want to put down 85,000 down payment myself either. Wow, 5Pillars,if paying property taxes is considered ''rent''; I agree with T Jefferson on that one, pay property taxes on the place of your choice every year.You chose the amount of your taxes by voting with your feet On the other hand oldtrader/oldtimer sounds like a helpful landlord to do business with if one has a renter personality.
i have many many houses now. tell you the truth, those are the worst investments i made ever. 1 no way to avoid tax 2 too much fees to buy and sell 3 takes forever to trade 4 deal with fucking stupid good dressed people. 5 return is never better than long term stock investment.
You must have invested in the wrong houses or in the wrong location. First, the taxes are deductible .. whether primary residence or rental property. Too many fees? You can't day trades houses; need to hold for a while. Forever to trade? The right house in the right location can sell the day it's listed. Return is never better than long term investment? Wrong ... I banked $300K tax free on my last 2 house sales. I don't know of any stocks, mutual funds, etc. where you can bank 100% of your gain.
The tax free aspect of trading your personal residence is pretty strong. But you have to compare it to capital gains tax on stocks which is only 15%. Traveler
i doubled my money last year on trading. i need to put 40% 50% for house downpayment, sometimes, i need to pay 100%. i pay no capital gain tax on stocks and futures. 20% on house gains. 4% broker fee round trip. if my houses only raise 10% a year, i would be better off to invest in stocks.
If objective only speculation - short/long KBH,CTX,TOL,RYL,DHI,BZH ,PHM & For good speculator would not very heavy task to perform 20% per year through 1 or through 100 operations. Advanatage of liquidity But most owner will consume or to buy social status Conflict of objective's Your respectfully
Overhere banks will refuse a credit with a mortage bigger than 33% of your (normal) income. If they give you a bigger loan they will be financially responsible for your losses. We also have a database with people in difficulty with their mortgage or other credits. Once they are in the database they cannot get any credit anymore at all, and they receive a mentor to help them solve their problems. But we don't live as americans; we buy what we can afford and limit the use of creditcards. If i cannot pay cash, i don't buy except for a house. If i decide to buy on credit it should be backed financially by stocks or tradingaccounts and it should give a better return on my money invested. Catastrophies as i read here have not yet appeared where i live.