Over about the past year, a large apartment complex
a few blocks from where I live has sold off the units
as townhomes. I even know somebody who got a loan
to buy and rent out a house--I don't know is this was
done to speculate on the housing boom, or to generate
income, but I doubt that you can come out ahead very
much with that trick. I suppose it is a bet that the
house is going to appreciate more than the rate you
pay on the loan, well, maybe. Uh oh, major brain cramp
here, so you put 200k into a place, that money costs
something like 5% or 10k a year, and you only pull
in 10k a year in rent...plus you still have to pay
property tax and take into account occasional repairs
and such. I don't get it, somebody help me out here.
Anyway, I know my assessment went way up this year, so
I suppose folks are making money on this sort of thing.
I called the county and had them come out so I could
talk them down a bit however<g>. I was able to get them
to take about 15k off, saves me a few bucks, but I'm
sure the county computers will take that back next year.
I would prefer that my house not appreciate. |
