RE: No retirement

["Stone, Brad V (TC)" <bvstone@xxxxxxxxxxxxxx>]

But you're only comparing rent to mortgage.  You're forgetting the other
$400 (on the average) a month it costs to own a house (garbage, water,
taxes, insurance, etc).  That alone, invested aggresively, will give you
more liquid assets than equity in 20 years of owning a home.  

I find it hard to believe that one can buy a nice house for 143k and yet
can't rent anything for 700.  Then again I'm not from the area.  A quick
search on Rent.Net produced a lot of entries...

Bradley V. Stone
Taylor Corporation - OASIS Programmer/Analyst   
bvstone@taylorcorp.com


> -----Original Message-----
> From: Fisher, Don [SMTP:DRF@HeiligMeyers.com]
> Sent: Monday, November 30, 1998 1:54 PM
> To:   'MIDRANGE-L@midrange.com'
> Subject:      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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