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

To: Tradelite who wrote (86103)	8/19/2007 2:55:49 PM
From: Tommaso	Read Replies (4) \| Respond to of 306849

>>>The fastest way I know of to make a dollar erode is to spend it on rent. Poof! Dollar gone.<<< If your rent is very low, the loss of money on rent is very low. Money goes "poof" for taxes, interest, and maintenance as well. I say this as someone who owns his house outright and who manages to minimize taxes by contesting tax assessments. But even then, my taxes are about equal to what I was paying in rent before I moved into the house I now own. Right now, a lot more money is going "poof" a lot faster than it ever would in rentals, as house prices drop. I am renting an office for $200 a month, all utilities and even a cleaning service included. I can abandon it any time I like and I can deduct the rent as a business expense. Three other office spaces in the same building are currently vacant--about 20% vacancy, producing no income. I like where I am but I would not want to own the building. The principal other renter is president of the state cleaners' and launderers' association and, I suspect, a multimillionaire from his drycleaning businesses. He is a hardheaded, self-made businessman (though a very nice guy). I think we are doing the right thing.