patrick.net
An Antidote to Corporate Media
1,357,932 comments by 15,734 users - Ceffer, TheAntiPanicanLearingCenter online now
Comments 1 - 1 of 1 Search these comments
If I can rent out my house to cover 90+% of the monthly nut why not become a landlord
If you were actually planning to rent your house, this would be a big mistake. As is, it could be good for your situation depending on factors.
So I look at paying a mortgage over the next 30 years as forced savings.
That is a great way to look at housing. The return is usually not as great as people think it is over the long-term, but housing generally does function as forced savings regardless.
I have K1 income that I only receive 40% of. Having the mortgage interest tax deduction seems particularly beneficial because I could thus pocket even more of the actual portion of my S1 income I receive.
It depends. The mortgage interest deduction isn't a net tax benefit. Rather, it functions as a reduction in interest rate. Rather than looking at how it may affect your taxes, it would be better to consider the "benefit" in your housing cost, rather than your taxes.
Hi there,
I have been lurking in the shadows on this site for the past 5/6 years. I would love to hear my fellow Patrick fans opinions about my situation. I am a bit intimidated by the expertise some of the posters have, and of course I feel a bit anxious about sharing my process as I have noticed that some regular commentators here can be a tad harsh in communicating their feedback. I agree that we have probably not seen the bottom yet. However here in Fairfax the rent for a decent 2/3 bed house is approx. $2,500. And one can buy a similar house for 450-500k.
I am considering (very early stages of considering) buying.
1. I would get help on the downpayment from family, mine and partner's family. I/we would not get help for any other purchase/"investment". It is what it is.
2. If I can rent out my house to cover 90+% of the monthly nut why not become a landlord if I ever want to leave the area, although I can't imagine a better place than Fairfax to raise a family. I am also totally open to renting out a room/rooms if necessary.
3. I have K1 income that I only receive 40% of. Having the mortgage interest tax deduction seems particularly beneficial because I could thus pocket even more of the actual portion of my S1 income I receive. Make sense? I try not to bank on there ever being an actual liquidity event. On paper I am worth a fair bit, but I was an employee stock option specialist in the dot com boom..so I learned the hard way DO NOT bank on private company stock ever been worth anything. FYI, I will never be a minority shareholder in an S-corp again!!!!
4. Also, I am not a great saver. I invest my additional money in education, professional trainings (I am a psychotherapist). So I look at paying a mortgage over the next 30 years as forced savings. It may not be the best way to save/best rate of return, it may even be a negative rate of return in real terms...but at least it is saving something, even if it ends up being the equivalent of throwing away 25 cents to save 75 cents. Bether then nothing in the end, right?
What ya think? Be gentle :)
Cheers,
Figalito
#housing