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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (22932)	1/1/2006 7:21:32 AM
From: John Carragher	Respond to of 78764

real estate taxes usually represent the quality of school system. Therefore , your growth in housing prices may have a direct relationship to the school system and a desireable area for young adults to move into. I expect if you moved to a more affordable area the schools are less developed. You may be in an area less populated and will be facing huge property tax increases as others flood to your area to avoid higher school taxes and thereby increase the taxes on your house as new schools will be necessary to handle the influx of more kids. your investment should be void of property taxes.. the alternative would have been rent. To find out if your owning a house vs renting was more profitable i would see what rents go for in a house and land as large as you were living in. I would then take the cost of the loan and interest, upkeep on your home that wouldn't have been expended in a rental. Of course how do you measure the value of living in your home vs a rental. another cost of equity in home vs rent would be what could that equity been invested in and did you take a penalty by having equity in home vs investing in stocks or buying bonds. for example although retired for ten years i always maintain a high mortgage with low interest rates and invest that money in the market. Most times it returns more than the interest charged with returns from mrkt. , gives me additional itemized deductions, mortgage interest and helps reduce my overall earned fed income tax rate. Of course most people pay off their mortgage asap and live in a home with all their equity tied up in the home. imo this is home poor. i recommend to some at least take out a reverse mortgage on your home vs bagging groceries to get bye when they want to stay in their home but property taxes are driving them out of them home.