RE: No retirement

Actually, Brad, you might be surprised at how the numbers work out when
comparing renting verses borrowing on a home.  A $1,000 mortgage payment on
a 30 year loan works out to about $800 a month in interest for the first 8
years.  Assuming a 33% combined federal and state tax rate and the
itemization of deductions, the monthly payment works out to $712 out of the
original $1,000.  I don't know about anywhere else, but $712 doesn't get you
much in Richmond, VA, especially if you have kids.  However, that $1,000
payment gets you about 143,000 worth of mortgage using a 7.5% rate, which
equates to a pretty decent home.

I'm not against houses.  I'm against too much.

Donald R. Fisher, III
Senior Programmer/Analyst
Heilig-Meyers Furniture Company
(804) 784-7500 ext. 2124
Don.Fisher@HeiligMeyers.com

> -----Original Message-----
> From: Stone, Brad V (TC) [SMTP:bvstone@taylorcorp.com]
> Sent: Monday, November 30, 1998 1:59 PM
> To:   'MIDRANGE-L@midrange.com'
> Subject:      RE: No retirement
> 
> Donald,
> 
         ... Others buy a house for the tax deduction which is the _LAST_
reason
> to buy a house.  
> 
> If those people would have simply rented, and invested the difference
> between owning a house (not just the mortgage payment, mind you) they
> would have so much more liquid assets than the compared equity in a home.
> 
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