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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (27975)	3/10/2005 1:44:35 PM
From: microhoogle!	Respond to of 306849

I still am not sure. If one buys at 400k mortgage. That person is perhaps paying on an average 1800127 = $ 151200 in interests (assumed 6% fixed mortgage). Then you have to pay 6% commission when you sell the house which works out to be additional 24 K. Tag on other expenses and taxes. Also further assume that this person is in 35% tax bracket - he/she might recapture maybe 50 k. He still payed 124K. The house has to appreciate 124 K over 7 years for this guy to break even. I know this is very crude and the assumptions are very incomplete, I still see less of a reason to move around wily nily (unless dictated by career changes, personal life distress situations like job loss, divorce or death of spouse etc). Personally I would want to stay as long as possible in my current residence (but I am knocking on the wood to not jinx my statement)

To: GraceZ who wrote (27975)	3/12/2005 7:01:33 PM
From: Amy J	Read Replies (1) \| Respond to of 306849

Grace, the flip side to the story, is your tenant was awfully conscientious about her responsibilities. She didn't want to borrow money with your assistance because she was concerned she couldn't pay it back, given she was a secretary with a low salary (if I recall your earlier post about her correctly.) It's a perfect example of how a diligently responsible person got screwed. She would have been better off not being so responsible, and if it didn't work just file bankruptcy. Regards, Amy J