"basskisser" wrote in message
oups.com...

NOYB wrote:
"basskisser" wrote in message
ups.com...

NOYB wrote:
"basskisser" wrote in message
oups.com...

P. Fritz wrote:
"NOYB" wrote in message
ink.net...

"Harry Krause" wrote in message
news NOYB wrote:

No they don't. They're using out-dated statistics. The
CNN/Money
magazine article is using 5 year old census data. The
Collier
Clerk
of
Courts and the Collier County Appraiser's office use
up-to-the-minute
data. I already told you: I bought my house about 9
months
ago
for
$825k. The man who I bought it from acquired it in 1997
for
$320k.


A fool and his money are soon parted...

That's a lot of money to live among the dead and
dying...does
it

include a
double-decker burial plot above the water table?

I plan on getting cremated and dumped into the Gulf, with
an
artificial
reef
named after me. The "NOYB Reef".



A bit levereged, eh?

Nope. A lot leveraged. I have an interest-only 5-year
fixed
at
4% (for
80% of the purchase price), and a 2nd interest-only equity
line
(for 15%
of
the purchase price) at prime plus 1/4% . My business loan
will
be paid
off
before the rate adjusts on the first mortgage, and that
will
free
up
$6500/mo (before taxes). At that point, I'll refinance the
first
and
second
mortgages (and my school loan) into a 30 year conventional
fixed
mortgage.
Thanks to appreciation, I'll still have 30-40% equity (or
better)
in a
house
worth $1.2-1.5 million. Debt isn't a bad thing if it's
managed
properly,
and you have good, steady cash flow.

especially considering the mortgage deduction from federal
taxes,
and
Florida's bankruptcy laws WRT homestead.

Florida's homestead exemption doesn't mean enough to a
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interest he's assumed.

The homestead law is part of the Florida Constitution. The
benefit
is that
my assets are 100% protected against creditors, and against any
lawsuits
that might be levied against me.

http://www.findarticles.com/p/articl...39/ai_n6044335

As for the interest write-off...
I'm paying a school loan for 30 years with no interest deduction.
I'm
paying the latter half of a 10-year business loan with diminishing
interest
deductibility. The wild appreciation in my home will allow me to
consolidate those two debts, free up almost $4000/mo in after-tax
money, and
get a large write-off each year for tax purposes. Plus, I get
the
added
benefit of parking my boat in my backyard.

I can park my boat in my back yard also. I'm going to be completely
debt free in a very few more years. I'd rather invest my money in
something other than what I have to pay interest on.

I'm borrowing the money at 4.25%. At my tax bracket, and due to the
tax
write-off, I'm borrowing it at an effective rate of less than 3%.
Since
waterfront homes are appreciating at least 10-20%/year, that means my
return
on my investment is anywhere from 7-13% per year. It's not liquid,
but it's
zero risk. Name one other investment that gives you that kind of
return
with no risk.

I never said, nor implied that in any other investment, that there
isn't risk. But, there IS risk in real estate, no matter what part of
the country you are in.

Where's the risk? If it appreciates, I make oodles of money when I sell it,
or when I decide to do a reverse mortgage on the new equity. If the housing
market collapses, at the very least I get to live in a very nice house until
it goes back up.

The only people who are taking a risk are the ones who buying the houses
purely as investment, and are doing it with short-term interest-only indexed
loans with ridiculous rates like 1.5%. When rates start going up, they
either have to come up with a lot of cash, a lot more money each month, or
they end up with negative amortization (less principal in the house than
when they started).

Who knows? Maybe I'll decide to sell the house in 10 years for $2.5 million,
pay off the original $793,000, move to Snellville, buy your house for a buck
and half, and use the remaining $1.5 million for retirement.