[lbo-talk] buy v rent/ tax break?

[Gar Lipow]

One thing to consider. If you buy a house you do indeed save something
on Federal taxes. From what you say , your income is high enough for
that to be a real benefit. But there is an important expense you might
want to consider that can counterbalance that - maintenance. In an
apartment major repairs at least are the landlords problem. Too lazy
to google, but one figure I've heard is that that maintenance in a
home you own runs at least 15% of your mortage. From people I know
that sounds like a reasonable minimum estimate. In an older home it
could be higher.  Even if you do a lot yourself, you will run into
stuff that just needs a professional touch. Also, if you do a lot
yourself, that you are adding a lot you and RRs home workload. Hell
forget maintenance, just the yardwork adds time, though a lot of
people count that as recreation rather than chores.

Of course you are out from under landlords with your own home, and
even though your ownership is in jr. partnership with the mortgage
holder, mortgage holders don't micromanage you get on your ass over
petty stuff the way landlords do. So plus and minus. In addition to
financial considerations, you are adapting a lifestyle change with
homeownership.  A tradeoff to some extent of time for more control
over your home.  Fewer petty rules. More ability to shape your
environment  the way  you want. But definitely less household spare
time.

On Sun, Jul 17, 2011 at 1:37 PM, Miles Jackson <cqmv at pdx.edu> wrote:
> shag carpet bomb wrote:
>>
>> ha! yeah. I'm already in love with it. It's 1920s arts and crafts home
>> that's been beautifully maintained by artists. Arts and crafts built-ins
>> (book case and writing desk), limestone fireplace, heart of pine flooring in
>> bedrooms, original mahogany columns, cross beamed ceiling in the library,
>> diagonal mullioned windows, hot tub and garden retreat. So, I want the house
>> in every other way, the tipping point really is $. Right now, I flush
>> $1800/month down the toilet for rent.
>>
>> It turns out that I don't need to pay PMI, so wahoos! The mortgage is less
>> than the rent.
>
> So you could live in a place you love for less than your current rent? And
> you don't need to sell a house to finance this?  Jump on it!  (I'm glad to
> see somebody benefit from the housing slump.)
>
> Miles
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