Americans Collectively Owe Almost $1 trillion in Credit Card Debt.

IMO- it's not best to buy a house paid in-full. Unless you have a ton left over afterwards.

You can make so much more w/ the money even after covering your mortgage rate. Plus if you need to liquidate, you don't need to sell your house.

 

Soooo by your math is it better to pay someone else 6.5% interest for using their money or have someone else pay you interest for your money? Do you really have not that much faith that your house will not make you money as not to put your money where your mouth is? Come one that should be an easy one.

 

Huh? I don't even understand that post. It's borderline jibberish.

And I don't think you understood mine.

Question- have you ever owned a home?

 

You just advocated not paying cash for a home and the point I was trying to make was why not?
In order to buy a home you need to borrow the money and pay over $3,000+ in closing costs for that loan they you will pay out to someone else say 6.5% interest, so your house better appreciate at least 10% a year for you to even make a little profit when you sell it. Get my point?
Where if you where to have paid cash for it, you would have an appreciating asset (not liquid) and you are not paying interest on it, if the house appreciates more power to you, if it stays flat you still do not loose 6.5% of the interest you pay on the loan every month. Yes you do not have access to your liquid cash, bu if you are earning you have no house payment and if you live within your means and save 20-30% of your earning which would have been lost in interest payments you put that money now in a CD worst case scenario EARNING you at least 6% on top of whatever else your house might appreciate if any.

I own a home right now, and if I had cash from the get go to pay for it I would've. but since I was 24yrs old when I bought, I bought it with $7k down.

 

Yeah, I didn't think you understood.

 

That's what you said. I'm wasting my time with this crap. I'm going to the beach. Best of luck to you.

 

You'll be back.

 

I totally agree with you on this. That is like any purchase though

BTW I had to get a house, my business outgrew my 2 bedroom apartment when I was like 22 years old. I had to buy a house to grow, it was a better decision than buying a seperate building for business in many ways.

I actually wanted to buy a building for business, the banks however f'd up explaining to me the dealings of the business loan I'd of needed, was not explained correctly until I already bought my first house!

All and all it was the best decision. Great deductions to be had

Another thing, those talking about extra expenses. When you're self employed, running out of your house you can deduct ALOT making those extra expenses next to nothing, and a good thing at times

 

Isn't it amazing! I'm always surprised at the stuff my CPA comes up with.

 

lol hey, it makes me look like I make alot less at the end of the year but I'm all good with that

I always ask 10x though, 'you're sure this is legal'

 

What can you deduct? I mean I was told by my accountant I could deduct a percentage of everything pretty much, for the home office

but its really not much, compared to the expenses is it?

 

Interest paid on the mortgage is deductable. I can deduct the part of the electricity, water bill, heat etc that my business takes up.

He's got it worked out in a way to deduct things in other ways as well, it's hard to explain but in the end it saves me thousands every single year

 

Cars, gas, golf clubs, cable internet....basically everything in your house and garage!

 

yeah I got all those, except instead if interest its a percentage of rent

 

You cannot deduct rent..

 

Of course you can. And he said he does....

 

Sorry, my bad.. I cannot deduct rent, personally because I rent my building to my business.. I can business wise, but not personally...

Doh... Would have helped if I read a few posts prior..

 

I do something similiar myself, saves a few bucks