Anyone that wants a long term investement.. that will pay HUGE

[Domin8]

Because polygamists are always adding more rooms to their homes for additional wives or birth of new children the homes are always under construction. They do this to avoid paying property taxes.

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[G Speed]

Because polygamists are always adding more rooms to their homes for additional wives or birth of new children the homes are always under construction. They do this to avoid paying property taxes.

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pfff would rather pay taxes then support 10 wifes and 40 childern lol

[The_cobalt_kid]

pfff would rather pay taxes then support 10 wifes and 40 childern lol

This

[utsadude]

ITT:

[Domin8]

pfff would rather pay taxes then support 10 wifes and 40 childern lol

Agreed. I have a hard enough time dealing with one.

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[jb09ss]

http://www.reuters.com/article/2012/...81E1LG20120215

[Domin8]

http://www.reuters.com/article/2012/...81E1LG20120215

Lol. Fail. 1) The guy from UC Berkley is in California. They are an anomaly with a paradox that makes no sense. California has always been unique in its housing market. Is never buy there. 2) There were a lot of things missing from that article, i.e, cost of interest. The second person interviewed in the article made more sense.

Here is my situation, in a nutshell. My mortgage, with escrow is less than $1,500/month. Zillow says I can get between $1,700-$1,800/month for rent. That leaves $200-$300/month for profit and repairs, and considering the house is only 5 years old and is completely electric I don't see much happening for a few years. Besides, the real profit comes when it's paid off.

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[jb09ss]

Not a fail. The example is a bit extreme I agree, and I don't really agree on the "rent to be rich" point of view.

But, let's take my situation for example, I paid 130k for my house, my total payment will be about 170k for 20 years, if the interest rates remain low. I pay around 2500$ in taxes each years, so 50k$ over 20 years. Maintenance is at least 100-200$ per month even on a new house if you want to keep everything in top shape, and when it will need new windows and a new roof it will be worse. So that's another 20=k$ in maintenance, 5k for a roof, 5k in windows. We are at 250k already, without including any improvements, and that's easily a few k$ each year. So let's say the total cost over 20 years is 300k. I will be lucky to get that for my house after 20 years. So no interest made at all.

Now if I invested 1250$ each months for 20 years (300k total) at 5% average interest, I will end up with more than 500k$. That's why I don't consider a house an investment....

[Domin8]

We can agree to disagree on the article. There are a few things you are not recognizing. You assume inflation, property value, and housing demand remain constant. They are not, and this is where the profit comes in. Mortgage prices in terms of monthly payments is directly correlational to monthly rent prices. As the cost for home mortgages goes up, so to do monthly payments. Monthly mortgage payments typically act as a baseline for the rate of which rent is calculated. Another factor that goes into rental prices is supply and demand. Right now there is a huge demand for rental property. Additionally, there is a lower than normal supply for housing because of foreclosures. A foreclosed home cannot be occupied by renters. Perfect scenario to be a landlord right now. Also take into consideration that, as long as you didn't take out an ARM, your mortgage payment will remain the same for the term of the note you signed. Over time the value of the currency will decease, thus increasing prices, including rent, but not affecting mortgage. The only way your monthly mortgage payment will increase is if you pay into an escrow account monthly for property taxes, etc. Even then, the increase in tax revenue is often at a very very low interest rate and the increase in monies owed is minute compared to the increase on rental revenue received due to the increase in inflation. So, as the receiver of rental revenue your profit increases as a combination of inflation and supply and demand dictate. Since we know inflation is rarely a negative number we can assume that at worst we do not decrease rental revenue unless the supply its abnormally large and the demand is abnormally low, as long as your rental rate is similar to market conditions in your immediate area. Personally, growing up in rental homes until the good ole age of 28, I can tell you that I've never seen rental rates go down. Now, I'm not forgetting that maintenance is also subject to inflation. But simple math will explain it best. Assume a rental rate of $1800/month, monthly maintenance costs of $150/month, and an annual rate of inflation at 2%. At year zero you will collect (1800*12)=$21,600 in rent. Your maintenance cost is (150*12)=$1,800. At year one inflation goes up 2%, so rent collected should increase to $21,600*1.02 (notice no percentage sign, as the formula already takes it into consideration) = $22,032. That's an increase of $432. Meanwhile, your mortgage rate increases to 1800*1.02 = $1836. That's a whole $36 annual increase. Put it together and your net additional profit is $396 that first year + your profit from year zero*2. How do rental prices increase even if you have long term renters? A lease is a contact and the price is always negotiable when one contact expires and another is being negotiated.

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[G Speed]

just an update.. started this thread...

sept 22... price was 45.73... today.... 56.72

that's for royalbank... yup talk about ROI

[06_ion2]

Id rather invest in silver.

[G Speed]

rather an doing are different things :P

[06_ion2]

rather an doing are different things :P

My silver will do rather well down the road.

[G Speed]

My silver will do rather well down the road.

no that's a horrible idea for long term... if you want long term you go gold.. if you want to play you go silver... as silver goes up and down a lot more than gold.. and the changes are a lot larger...

Silver goes up 30% gold will only go up let's say 15%... silver goes down 30% gold goes down 10%.. see why bad idea long term.. and considering the price of silver/gold.. $125+ per shares.. 30% down is a huge loss



history repeats it self

[06_ion2]

no that's a horrible idea for long term... if you want long term you go gold.. if you want to play you go silver... as silver goes up and down a lot more than gold.. and the changes are a lot larger...

Silver goes up 30% gold will only go up let's say 15%... silver goes down 30% gold goes down 10%.. see why bad idea long term.. and considering the price of silver/gold.. $125+ per shares.. 30% down is a huge loss

history repeats it self

Im not dishing out $1600 + for an oz of gold. I'd rather play with $34 oz silver.

More silver is being used today than mined, im talking 25-30 years down the road.

Seems like your saying the silver I have wont gain me any profit.

[jb09ss]

We can agree to disagree on the article. There are a few things you are not recognizing. You assume inflation, property value, and housing demand remain constant. They are not, and this is where the profit comes in. Mortgage prices in terms of monthly payments is directly correlational to monthly rent prices. As the cost for home mortgages goes up, so to do monthly payments. Monthly mortgage payments typically act as a baseline for the rate of which rent is calculated. Another factor that goes into rental prices is supply and demand. Right now there is a huge demand for rental property. Additionally, there is a lower than normal supply for housing because of foreclosures. A foreclosed home cannot be occupied by renters. Perfect scenario to be a landlord right now. Also take into consideration that, as long as you didn't take out an ARM, your mortgage payment will remain the same for the term of the note you signed. Over time the value of the currency will decease, thus increasing prices, including rent, but not affecting mortgage. The only way your monthly mortgage payment will increase is if you pay into an escrow account monthly for property taxes, etc. Even then, the increase in tax revenue is often at a very very low interest rate and the increase in monies owed is minute compared to the increase on rental revenue received due to the increase in inflation. So, as the receiver of rental revenue your profit increases as a combination of inflation and supply and demand dictate. Since we know inflation is rarely a negative number we can assume that at worst we do not decrease rental revenue unless the supply its abnormally large and the demand is abnormally low, as long as your rental rate is similar to market conditions in your immediate area. Personally, growing up in rental homes until the good ole age of 28, I can tell you that I've never seen rental rates go down. Now, I'm not forgetting that maintenance is also subject to inflation. But simple math will explain it best. Assume a rental rate of $1800/month, monthly maintenance costs of $150/month, and an annual rate of inflation at 2%. At year zero you will collect (1800*12)=$21,600 in rent. Your maintenance cost is (150*12)=$1,800. At year one inflation goes up 2%, so rent collected should increase to $21,600*1.02 (notice no percentage sign, as the formula already takes it into consideration) = $22,032. That's an increase of $432. Meanwhile, your mortgage rate increases to 1800*1.02 = $1836. That's a whole $36 annual increase. Put it together and your net additional profit is $396 that first year + your profit from year zero*2. How do rental prices increase even if you have long term renters? A lease is a contact and the price is always negotiable when one contact expires and another is being negotiated.

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TL;DR

[Domin8]

Lol. Would you buy stock when the pricer is high? Why do that with precious metals?

TL;DR

??? I don't understand what you're saying here.

[ac66bronco]

money?????

[G Speed]

Lol. Would you buy stock when the pricer is high? Why do that with precious metals?

No but...... what is high? You could buy a share that's dropping.. and it could drop even more... and never rise again... or you could buy a stock that is rising...and it could keep on getting higher

[G Speed]

money?????