That is brilliant about the land tax. I hate taxes.
I am single and rent a one bedroom apt. in Michigan for $470/month right now. There are homes for sale in my area that run from 10K to 30K that do not need major work that I could not handle. It was enticing a year ago, now it is super enticing. If it keeps up I might have to buy.
But the reason I keep renting for now is due to property taxes. The school districts that these homes are in seem to extract quite a bit of money in "rent." I will have to call the township and see what my actual property taxes on some of these places would be. Some of the online estimators say as low as like $300/year in prop. tax. That would get me buying in a heartbeat.
I am an entrepreneur so my goal is always to get my monthly expenses lower. If I can buy a house outright and live in it for less than what I rent for I would do it, just for the cash flow advantage.
I know the alternative is to keep renting but invest my 20 grand elsewhere, but honestly I don't see any investment options that make this enticing to me.
Houses are so cheap around here that you don't need a mortgage, which is awesome. On the other hand, they have not raised my rent for a few years either.
Property taxes infuriate me and that is sort of why I keep renting. It just seems like a wash most ways I figure it.
Yeah I live in Michigan and I pay $470/month in rent plus electric.
I could buy a house and pay cash for $22,900, no mortgage necessary. Property taxes are $1,500/year.
I think even with maintenance, upkeep, and utilities, that makes more sense to buy (provided you pay cash).
This is why I order my meds from overseas. Because somewhere along the way, the system broke and I am expected to pay 5X as much for my medicine as people who live somewhere else. Huh?
I pay for my own health insurance and have no problem paying money for health services. I just don't like being taken advantage of.
@ ptiemann - Michigan, US. I called the county treasurer to find out what prop. taxes would be on a house that is for sale for $22,900. They said $1,500 annual. They base it on the home's value over the last 2 years they said.
$1,500 a year is not bad, given that I would pay cash for the house and have no mortgage. My only worry is other more hidden costs (upkeep, maintenance, etc.), as I have never owned a home before.
Someone refute this please because I have thought this way my whole life and everyone tells me I am a moron.
I know that the margin of victory will not be a single vote so why should I bother to invest my time?
Would I not be better served writing a blog post to try to influence multiple voters, rather than to drive to the voting station myself?
OK thank you for the input so far.
To clarify a bit:
Their basic question is: basement or slab?
They know that the slabs get cracked at times, how big a problem is that?
They also know that sometimes plumbing is integrated into a slab, can that create problems?
They are not sure on the thickness of the slabs or of the soil type, but they are checking into it.
They are also wondering about ergonomics of a slab, is it worse if you have a bad back, etc?
Also wondering if there are major differences in utilities with slab vs. basement, heating, etc.?
Thanks again for any input, my folks are most appreciative of this forum!
I would buy it for sure.
You might email Jacob of ERE fame about the blog/book setup. He has done well and basically you just promote the book via your site, many do this as an Amazon affiliate too. Very popular model these days.
Very smart move i believe. The book should do well for you. I would pre order.
Money sent via Paypal. Will take the book digital or hard copy, just can't wait to read it.
Will this be available in eBook format eventually? Kindle, etc? Would be great!
Yes, in for $8 if digital!
Apple reader is iBooks but most have a kindle app on their iDevice anyway....so no biggie imo. (but beware i am not a book publisher!)
Amazon is the neighborhood bully.
Apparently when you are the market leader you get to make all the rules. For most publishers, the cost of not being in the Kindle marketplace is too high...
Any closer to a digital edition yet?
Bought and read it on Kindle. Happy to be renting for $425/month!
Thanks for your book, and your site.
Test alternate subtitles:
"Avoid a lifetime of debt and live free"
"A mortgage is no way to live"
"Why everyone in housing wants you broke"
"Finding economic freedom in today's market"
Brainstorm more, then rotate them into Adwords a la Tim Ferriss. Find the most clickable subtitle. Sell more books.
My rental is only $425/month, includes heating and cooling. It's just a little one bedroom apt. but it also functions as my office. Not a bad little place at all. I like to travel and go visit with friends, so why sit home all day anyway? To me, housing is just a place to sleep and work online.
My rent cost is 5 grand per year. Meanwhile I have earned over $15,000 in investment income over the last 10 months.
That is why I love renting. Dirt cheap, fully flexible, and the opportunity cost of home ownership is too high for me! Property taxes in my area are ridiculous anyway and negate the benefits of avoiding rent.
I am sure there are benefits to ownership too but right now I am happy to be a renter. And I am definitely not "throwing money away".....
Wow, I have never seen my investment account jump this much in one day (1/2/13). Incredible.
Of course, it's still early in the day yet.....
Great article Patrick, thank you for posting.
Huh.....hate wrapped up in religion is still hate. My 2 cents
I rent for $440/month.
Investment income last year was about 20K or slightly more.
I am 37. Don't want a house.
What is a good sell target?
I had to use Win 8 the other day.
Number one, it did not boot to a desktop with icons and stuff. Huh?
Number two, where is my damn start menu?
At that point I was pissed. Real pissed. This ain't no freaking tablet, I got work to do here people!
Surprise twist: Patrick and Apocalypsefuck are the same person.
I secretly believe this and it makes me happy!
Exactly, most people do not actually want free speech.
They don't understand it.
They claim that they want free speech, but then when you press them on it a bit and get them uncomfortable (with examples of hate speech), they cave in.
No, they don't support hate speech, it turns out. And therefore they don't really support free speech either.
It's a tricky subject for the average person.
They are forced to make a choice:
1) Truly free speech, including hate speech, OR
2) Everyone is comfortable and not engaging in hateful speech (as defined by them personally in their own little bubble as ruler of the universe)
You can't have both your freedom and your comfort. Most people live under the illusion that there is a perfect and happy medium that works for everyone.