I love the "smart INvesting" Term
Run the maths on $22,000 a year saved please John, with 35 working years left.
Last edited by CameronPoe (2010-01-05 14:55:05)
At what annual return?CameronPoe wrote:
Run the maths on $22,000 a year saved please John, with 35 working years left.
Here's 8% annual:
Years of work Total return Invested/Yr
1 $23,760.00 $22,000.00
2 $49,896.00 $22,440.00
3 $78,607.58 $22,888.80
4 $110,110.49 $23,346.58
5 $144,637.92 $23,813.51
6 $182,441.91 $24,289.78
7 $223,794.89 $24,775.57
8 $268,991.25 $25,271.08
9 $318,349.18 $25,776.51
10 $372,212.51 $26,292.04
11 $430,952.82 $26,817.88
12 $494,971.62 $27,354.23
13 $564,702.77 $27,901.32
14 $640,615.09 $28,459.35
15 $723,215.11 $29,028.53
16 $813,050.15 $29,609.10
17 $910,711.55 $30,201.29
18 $1,016,838.21 $30,805.31
19 $1,132,120.40 $31,421.42
20 $1,257,303.86 $32,049.85
21 $1,393,194.28 $32,690.84
22 $1,540,662.05 $33,344.66
23 $1,700,647.50 $34,011.55
24 $1,874,166.42 $34,691.78
25 $2,062,316.20 $35,385.62
26 $2,266,282.30 $36,093.33
27 $2,487,345.30 $36,815.20
28 $2,726,888.54 $37,551.50
29 $2,986,406.36 $38,302.53
30 $3,267,512.94 $39,068.58
31 $3,571,951.93 $39,849.95
32 $3,901,606.79 $40,646.95
33 $4,258,512.02 $41,459.89
34 $4,644,865.20 $42,289.09
35 $5,063,040.08 $43,134.87
8% with no yearly increase:
Years of work Total return Invested/Yr
1 $23,760.00 $22,000.00
2 $49,420.80 $22,000.00
3 $77,134.46 $22,000.00
4 $107,065.22 $22,000.00
5 $139,390.44 $22,000.00
6 $174,301.67 $22,000.00
7 $212,005.81 $22,000.00
8 $252,726.27 $22,000.00
9 $296,704.37 $22,000.00
10 $344,200.72 $22,000.00
11 $395,496.78 $22,000.00
12 $450,896.52 $22,000.00
13 $510,728.25 $22,000.00
14 $575,346.51 $22,000.00
15 $645,134.23 $22,000.00
16 $720,504.97 $22,000.00
17 $801,905.36 $22,000.00
18 $889,817.79 $22,000.00
19 $984,763.21 $22,000.00
20 $1,087,304.27 $22,000.00
21 $1,198,048.61 $22,000.00
22 $1,317,652.50 $22,000.00
23 $1,446,824.70 $22,000.00
24 $1,586,330.68 $22,000.00
25 $1,736,997.13 $22,000.00
26 $1,899,716.90 $22,000.00
27 $2,075,454.26 $22,000.00
28 $2,265,250.60 $22,000.00
29 $2,470,230.64 $22,000.00
30 $2,691,609.10 $22,000.00
31 $2,930,697.82 $22,000.00
32 $3,188,913.65 $22,000.00
33 $3,467,786.74 $22,000.00
34 $3,768,969.68 $22,000.00
35 $4,094,247.26 $22,000.00
10%, increased investment 2% per year:
Years of work Total return Invested/Yr
1 $24,200.00 $22,000.00
2 $51,304.00 $22,440.00
3 $81,612.08 $22,888.80
4 $115,454.52 $23,346.58
5 $153,194.83 $23,813.51
6 $195,233.07 $24,289.78
7 $242,009.51 $24,775.57
8 $294,008.65 $25,271.08
9 $351,763.67 $25,776.51
10 $415,861.28 $26,292.04
11 $486,947.08 $26,817.88
12 $565,731.44 $27,354.23
13 $652,996.04 $27,901.32
14 $749,600.92 $28,459.35
15 $856,492.40 $29,028.53
16 $974,711.65 $29,609.10
17 $1,105,404.23 $30,201.29
18 $1,249,830.50 $30,805.31
19 $1,409,377.11 $31,421.42
20 $1,585,569.65 $32,049.85
21 $1,780,086.54 $32,690.84
22 $1,994,774.32 $33,344.66
23 $2,231,664.46 $34,011.55
24 $2,492,991.87 $34,691.78
25 $2,781,215.23 $35,385.62
26 $3,099,039.42 $36,093.33
27 $3,449,440.08 $36,815.20
28 $3,835,690.74 $37,551.50
29 $4,261,392.61 $38,302.53
30 $4,730,507.31 $39,068.58
31 $5,247,392.99 $39,849.95
32 $5,816,843.94 $40,646.95
33 $6,444,134.21 $41,459.89
34 $7,135,065.63 $42,289.09
35 $7,896,020.56 $43,134.87
10% flat:
Years of work Total return Invested/Yr
1 $24,200.00 $22,000.00
2 $50,820.00 $22,000.00
3 $80,102.00 $22,000.00
4 $112,312.20 $22,000.00
5 $147,743.42 $22,000.00
6 $186,717.76 $22,000.00
7 $229,589.54 $22,000.00
8 $276,748.49 $22,000.00
9 $328,623.34 $22,000.00
10 $385,685.68 $22,000.00
11 $448,454.24 $22,000.00
12 $517,499.67 $22,000.00
13 $593,449.63 $22,000.00
14 $676,994.60 $22,000.00
15 $768,894.06 $22,000.00
16 $869,983.46 $22,000.00
17 $981,181.81 $22,000.00
18 $1,103,499.99 $22,000.00
19 $1,238,049.99 $22,000.00
20 $1,386,054.99 $22,000.00
21 $1,548,860.49 $22,000.00
22 $1,727,946.54 $22,000.00
23 $1,924,941.19 $22,000.00
24 $2,141,635.31 $22,000.00
25 $2,379,998.84 $22,000.00
26 $2,642,198.72 $22,000.00
27 $2,930,618.59 $22,000.00
28 $3,247,880.45 $22,000.00
29 $3,596,868.50 $22,000.00
30 $3,980,755.35 $22,000.00
31 $4,403,030.88 $22,000.00
32 $4,867,533.97 $22,000.00
33 $5,378,487.37 $22,000.00
34 $5,940,536.11 $22,000.00
35 $6,558,789.72 $22,000.00
15%, 2% increase:
1 $25,300.00 $22,000.00
2 $54,901.00 $22,440.00
3 $89,458.27 $22,888.80
4 $129,725.57 $23,346.58
5 $176,569.94 $23,813.51
6 $230,988.68 $24,289.78
7 $294,128.89 $24,775.57
8 $367,309.97 $25,271.08
9 $452,049.45 $25,776.51
10 $550,092.71 $26,292.04
11 $663,447.17 $26,817.88
12 $794,421.62 $27,354.23
13 $945,671.38 $27,901.32
14 $1,120,250.33 $28,459.35
15 $1,321,670.69 $29,028.53
16 $1,553,971.77 $29,609.10
17 $1,821,799.01 $30,201.29
18 $2,130,494.97 $30,805.31
19 $2,486,203.85 $31,421.42
20 $2,895,991.75 $32,049.85
21 $3,367,984.98 $32,690.84
22 $3,911,529.08 $33,344.66
23 $4,537,371.73 $34,011.55
24 $5,257,873.04 $34,691.78
25 $6,087,247.46 $35,385.62
26 $7,041,841.91 $36,093.33
27 $8,140,455.67 $36,815.20
28 $9,404,708.25 $37,551.50
29 $10,859,462.40 $38,302.53
30 $12,533,310.63 $39,068.58
31 $14,459,134.68 $39,849.95
32 $16,674,748.88 $40,646.95
33 $19,223,640.08 $41,459.89
34 $22,155,818.55 $42,289.09
35 $25,528,796.44 $43,134.87
15% flat investment:
1 $25,300.00 $22,000.00
2 $54,395.00 $22,000.00
3 $87,854.25 $22,000.00
4 $126,332.39 $22,000.00
5 $170,582.25 $22,000.00
6 $221,469.58 $22,000.00
7 $279,990.02 $22,000.00
8 $347,288.52 $22,000.00
9 $424,681.80 $22,000.00
10 $513,684.07 $22,000.00
11 $616,036.68 $22,000.00
12 $733,742.18 $22,000.00
13 $869,103.51 $22,000.00
14 $1,024,769.04 $22,000.00
15 $1,203,784.39 $22,000.00
16 $1,409,652.05 $22,000.00
17 $1,646,399.86 $22,000.00
18 $1,918,659.84 $22,000.00
19 $2,231,758.82 $22,000.00
20 $2,591,822.64 $22,000.00
21 $3,005,896.04 $22,000.00
22 $3,482,080.44 $22,000.00
23 $4,029,692.51 $22,000.00
24 $4,659,446.38 $22,000.00
25 $5,383,663.34 $22,000.00
26 $6,216,512.84 $22,000.00
27 $7,174,289.77 $22,000.00
28 $8,275,733.24 $22,000.00
29 $9,542,393.22 $22,000.00
30 $10,999,052.20 $22,000.00
31 $12,674,210.03 $22,000.00
32 $14,600,641.54 $22,000.00
33 $16,816,037.77 $22,000.00
34 $19,363,743.44 $22,000.00
35 $22,293,604.95 $22,000.00
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
-Frederick Bastiat
Sweet. One thing: capital gains/deposit interest retention tax.JohnG@lt wrote:
At what annual return?CameronPoe wrote:
Run the maths on $22,000 a year saved please John, with 35 working years left.
Here's 8% annual:
Years of work Total return Invested/Yr
1 $23,760.00 $22,000.00
2 $49,896.00 $22,440.00
3 $78,607.58 $22,888.80
4 $110,110.49 $23,346.58
5 $144,637.92 $23,813.51
6 $182,441.91 $24,289.78
7 $223,794.89 $24,775.57
8 $268,991.25 $25,271.08
9 $318,349.18 $25,776.51
10 $372,212.51 $26,292.04
11 $430,952.82 $26,817.88
12 $494,971.62 $27,354.23
13 $564,702.77 $27,901.32
14 $640,615.09 $28,459.35
15 $723,215.11 $29,028.53
16 $813,050.15 $29,609.10
17 $910,711.55 $30,201.29
18 $1,016,838.21 $30,805.31
19 $1,132,120.40 $31,421.42
20 $1,257,303.86 $32,049.85
21 $1,393,194.28 $32,690.84
22 $1,540,662.05 $33,344.66
23 $1,700,647.50 $34,011.55
24 $1,874,166.42 $34,691.78
25 $2,062,316.20 $35,385.62
26 $2,266,282.30 $36,093.33
27 $2,487,345.30 $36,815.20
28 $2,726,888.54 $37,551.50
29 $2,986,406.36 $38,302.53
30 $3,267,512.94 $39,068.58
31 $3,571,951.93 $39,849.95
32 $3,901,606.79 $40,646.95
33 $4,258,512.02 $41,459.89
34 $4,644,865.20 $42,289.09
35 $5,063,040.08 $43,134.87
8% with no yearly increase:
Years of work Total return Invested/Yr
1 $23,760.00 $22,000.00
2 $49,420.80 $22,000.00
3 $77,134.46 $22,000.00
4 $107,065.22 $22,000.00
5 $139,390.44 $22,000.00
6 $174,301.67 $22,000.00
7 $212,005.81 $22,000.00
8 $252,726.27 $22,000.00
9 $296,704.37 $22,000.00
10 $344,200.72 $22,000.00
11 $395,496.78 $22,000.00
12 $450,896.52 $22,000.00
13 $510,728.25 $22,000.00
14 $575,346.51 $22,000.00
15 $645,134.23 $22,000.00
16 $720,504.97 $22,000.00
17 $801,905.36 $22,000.00
18 $889,817.79 $22,000.00
19 $984,763.21 $22,000.00
20 $1,087,304.27 $22,000.00
21 $1,198,048.61 $22,000.00
22 $1,317,652.50 $22,000.00
23 $1,446,824.70 $22,000.00
24 $1,586,330.68 $22,000.00
25 $1,736,997.13 $22,000.00
26 $1,899,716.90 $22,000.00
27 $2,075,454.26 $22,000.00
28 $2,265,250.60 $22,000.00
29 $2,470,230.64 $22,000.00
30 $2,691,609.10 $22,000.00
31 $2,930,697.82 $22,000.00
32 $3,188,913.65 $22,000.00
33 $3,467,786.74 $22,000.00
34 $3,768,969.68 $22,000.00
35 $4,094,247.26 $22,000.00
10%, increased investment 2% per year:
Years of work Total return Invested/Yr
1 $24,200.00 $22,000.00
2 $51,304.00 $22,440.00
3 $81,612.08 $22,888.80
4 $115,454.52 $23,346.58
5 $153,194.83 $23,813.51
6 $195,233.07 $24,289.78
7 $242,009.51 $24,775.57
8 $294,008.65 $25,271.08
9 $351,763.67 $25,776.51
10 $415,861.28 $26,292.04
11 $486,947.08 $26,817.88
12 $565,731.44 $27,354.23
13 $652,996.04 $27,901.32
14 $749,600.92 $28,459.35
15 $856,492.40 $29,028.53
16 $974,711.65 $29,609.10
17 $1,105,404.23 $30,201.29
18 $1,249,830.50 $30,805.31
19 $1,409,377.11 $31,421.42
20 $1,585,569.65 $32,049.85
21 $1,780,086.54 $32,690.84
22 $1,994,774.32 $33,344.66
23 $2,231,664.46 $34,011.55
24 $2,492,991.87 $34,691.78
25 $2,781,215.23 $35,385.62
26 $3,099,039.42 $36,093.33
27 $3,449,440.08 $36,815.20
28 $3,835,690.74 $37,551.50
29 $4,261,392.61 $38,302.53
30 $4,730,507.31 $39,068.58
31 $5,247,392.99 $39,849.95
32 $5,816,843.94 $40,646.95
33 $6,444,134.21 $41,459.89
34 $7,135,065.63 $42,289.09
35 $7,896,020.56 $43,134.87
10% flat:
Years of work Total return Invested/Yr
1 $24,200.00 $22,000.00
2 $50,820.00 $22,000.00
3 $80,102.00 $22,000.00
4 $112,312.20 $22,000.00
5 $147,743.42 $22,000.00
6 $186,717.76 $22,000.00
7 $229,589.54 $22,000.00
8 $276,748.49 $22,000.00
9 $328,623.34 $22,000.00
10 $385,685.68 $22,000.00
11 $448,454.24 $22,000.00
12 $517,499.67 $22,000.00
13 $593,449.63 $22,000.00
14 $676,994.60 $22,000.00
15 $768,894.06 $22,000.00
16 $869,983.46 $22,000.00
17 $981,181.81 $22,000.00
18 $1,103,499.99 $22,000.00
19 $1,238,049.99 $22,000.00
20 $1,386,054.99 $22,000.00
21 $1,548,860.49 $22,000.00
22 $1,727,946.54 $22,000.00
23 $1,924,941.19 $22,000.00
24 $2,141,635.31 $22,000.00
25 $2,379,998.84 $22,000.00
26 $2,642,198.72 $22,000.00
27 $2,930,618.59 $22,000.00
28 $3,247,880.45 $22,000.00
29 $3,596,868.50 $22,000.00
30 $3,980,755.35 $22,000.00
31 $4,403,030.88 $22,000.00
32 $4,867,533.97 $22,000.00
33 $5,378,487.37 $22,000.00
34 $5,940,536.11 $22,000.00
35 $6,558,789.72 $22,000.00
15%, 2% increase:
1 $25,300.00 $22,000.00
2 $54,901.00 $22,440.00
3 $89,458.27 $22,888.80
4 $129,725.57 $23,346.58
5 $176,569.94 $23,813.51
6 $230,988.68 $24,289.78
7 $294,128.89 $24,775.57
8 $367,309.97 $25,271.08
9 $452,049.45 $25,776.51
10 $550,092.71 $26,292.04
11 $663,447.17 $26,817.88
12 $794,421.62 $27,354.23
13 $945,671.38 $27,901.32
14 $1,120,250.33 $28,459.35
15 $1,321,670.69 $29,028.53
16 $1,553,971.77 $29,609.10
17 $1,821,799.01 $30,201.29
18 $2,130,494.97 $30,805.31
19 $2,486,203.85 $31,421.42
20 $2,895,991.75 $32,049.85
21 $3,367,984.98 $32,690.84
22 $3,911,529.08 $33,344.66
23 $4,537,371.73 $34,011.55
24 $5,257,873.04 $34,691.78
25 $6,087,247.46 $35,385.62
26 $7,041,841.91 $36,093.33
27 $8,140,455.67 $36,815.20
28 $9,404,708.25 $37,551.50
29 $10,859,462.40 $38,302.53
30 $12,533,310.63 $39,068.58
31 $14,459,134.68 $39,849.95
32 $16,674,748.88 $40,646.95
33 $19,223,640.08 $41,459.89
34 $22,155,818.55 $42,289.09
35 $25,528,796.44 $43,134.87
15% flat investment:
1 $25,300.00 $22,000.00
2 $54,395.00 $22,000.00
3 $87,854.25 $22,000.00
4 $126,332.39 $22,000.00
5 $170,582.25 $22,000.00
6 $221,469.58 $22,000.00
7 $279,990.02 $22,000.00
8 $347,288.52 $22,000.00
9 $424,681.80 $22,000.00
10 $513,684.07 $22,000.00
11 $616,036.68 $22,000.00
12 $733,742.18 $22,000.00
13 $869,103.51 $22,000.00
14 $1,024,769.04 $22,000.00
15 $1,203,784.39 $22,000.00
16 $1,409,652.05 $22,000.00
17 $1,646,399.86 $22,000.00
18 $1,918,659.84 $22,000.00
19 $2,231,758.82 $22,000.00
20 $2,591,822.64 $22,000.00
21 $3,005,896.04 $22,000.00
22 $3,482,080.44 $22,000.00
23 $4,029,692.51 $22,000.00
24 $4,659,446.38 $22,000.00
25 $5,383,663.34 $22,000.00
26 $6,216,512.84 $22,000.00
27 $7,174,289.77 $22,000.00
28 $8,275,733.24 $22,000.00
29 $9,542,393.22 $22,000.00
30 $10,999,052.20 $22,000.00
31 $12,674,210.03 $22,000.00
32 $14,600,641.54 $22,000.00
33 $16,816,037.77 $22,000.00
34 $19,363,743.44 $22,000.00
35 $22,293,604.95 $22,000.00
???CameronPoe wrote:
Sweet. One thing: capital gains/deposit interest retention tax.
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
-Frederick Bastiat
You generally pay a very small percentage of tax on returns?JohnG@lt wrote:
???
You pay capital gains on dividends received and when you divest you get hit with it as well. If you're just holding stock long term you don't get hit with a yearly fee. If you buy a stock for $1, hold it for 20 years and sell it for $50, you'll have to pay 20% in capital gains taxes when it's sold (that's the rate here in the US, not sure of Ireland).CameronPoe wrote:
You generally pay a very small percentage of tax on returns?JohnG@lt wrote:
???
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
-Frederick Bastiat
I happen to keep track of possible tax changes in the future so I can advise my clients. Currently there is a belief the current administration will eventually revert the capital gains tax back to pre-Bush levels, where capital gains are taxed at your regular rate. When this bill was originally proposed, the democrats lobbied heavily against it. But there was too many tax cuts included in the bill to have any congressman vote against it without being ostracized by their constituents. This topic came up again recently a few times - 1) the democrats advised Obama to eliminate the cap gain tax rate right after he was elected, 2) Obama talked about eliminating the cap gain tax rate during the election, and talked about it why he kept it in a neutral way, 3) most recently, it came up in discussion in the failed adjustment to the Estate tax adjustment they are scrambling to fix.JohnG@lt wrote:
You pay capital gains on dividends received and when you divest you get hit with it as well. If you're just holding stock long term you don't get hit with a yearly fee. If you buy a stock for $1, hold it for 20 years and sell it for $50, you'll have to pay 20% in capital gains taxes when it's sold (that's the rate here in the US, not sure of Ireland).CameronPoe wrote:
You generally pay a very small percentage of tax on returns?JohnG@lt wrote:
???
So if and when this change happens, most people will convert their portfolios to IRAs, probably Roths. You'll also see more trusts created, and more investment partnerships created which have a lessor focus on stocks (real estate, business, etc).
John, if you are interested in this, you should talk to an investment advisor. With the amount of money you are investing, you can find someone who's willing to manage all this crap for you - and their fee is based on the value of the portfolio - meaning they will want to make it grow too. Second, if you aren't interested in talking to someone, you might want to research tax-deferred investments on your own.
I think its awesome you think you have the ability and time to manage your own portfolio. My opinion is managing your own portfolio is difficult, mostly because you have to spend way too much time to do it right. That's why I just pay someone else a pittance to do it for me.
Honestly right now I think that real estate would be a better investment.. Rates are still really low and you can get cash heavy investment properties. Also property taxes are inflated and I'd say Have to come down in the next two years.
In the New York/New Jersey area, you should be able to find a place that brings in around 3k a month for 1800 a month + heat and hot water if you have to pay for it. But there's plenty of places that are slated for the tenets to pay for it.
Oh you should be able to find these places for 200 to 250k, and hopefully the market around her won't crash below that.
In the New York/New Jersey area, you should be able to find a place that brings in around 3k a month for 1800 a month + heat and hot water if you have to pay for it. But there's plenty of places that are slated for the tenets to pay for it.
Oh you should be able to find these places for 200 to 250k, and hopefully the market around her won't crash below that.
You won't make a penny 'investing' in real estate in NY/NJ. You'll lose every penny of 'profit' in property taxes and upkeep.cpt.fass1 wrote:
Honestly right now I think that real estate would be a better investment.. Rates are still really low and you can get cash heavy investment properties. Also property taxes are inflated and I'd say Have to come down in the next two years.
In the New York/New Jersey area, you should be able to find a place that brings in around 3k a month for 1800 a month + heat and hot water if you have to pay for it. But there's plenty of places that are slated for the tenets to pay for it.
Oh you should be able to find these places for 200 to 250k, and hopefully the market around her won't crash below that.
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
-Frederick Bastiat
Talking with my friends who deal in Real Estate, restructuring, and refinancing (aka Real Estate cartel), there is still at least one more major correction coming this year.JohnG@lt wrote:
You won't make a penny 'investing' in real estate in NY/NJ. You'll lose every penny of 'profit' in property taxes and upkeep.cpt.fass1 wrote:
Honestly right now I think that real estate would be a better investment.. Rates are still really low and you can get cash heavy investment properties. Also property taxes are inflated and I'd say Have to come down in the next two years.
In the New York/New Jersey area, you should be able to find a place that brings in around 3k a month for 1800 a month + heat and hot water if you have to pay for it. But there's plenty of places that are slated for the tenets to pay for it.
Oh you should be able to find these places for 200 to 250k, and hopefully the market around her won't crash below that.
Ehh not so sure on that. the 1800 was including the property taxes. As far as investments are concerned there really isn't a thing as a stable one, and it's really hard to judge and read which direction our economy is going to be based. With as Volotial as our economy is, I don't think any one investment is a Smart one.JohnG@lt wrote:
You won't make a penny 'investing' in real estate in NY/NJ. You'll lose every penny of 'profit' in property taxes and upkeep.cpt.fass1 wrote:
Honestly right now I think that real estate would be a better investment.. Rates are still really low and you can get cash heavy investment properties. Also property taxes are inflated and I'd say Have to come down in the next two years.
In the New York/New Jersey area, you should be able to find a place that brings in around 3k a month for 1800 a month + heat and hot water if you have to pay for it. But there's plenty of places that are slated for the tenets to pay for it.
Oh you should be able to find these places for 200 to 250k, and hopefully the market around her won't crash below that.
You can't find anything outside of a ghetto for 200-250k in ny/li areacpt.fass1 wrote:
Ehh not so sure on that. the 1800 was including the property taxes. As far as investments are concerned there really isn't a thing as a stable one, and it's really hard to judge and read which direction our economy is going to be based. With as Volotial as our economy is, I don't think any one investment is a Smart one.JohnG@lt wrote:
You won't make a penny 'investing' in real estate in NY/NJ. You'll lose every penny of 'profit' in property taxes and upkeep.cpt.fass1 wrote:
Honestly right now I think that real estate would be a better investment.. Rates are still really low and you can get cash heavy investment properties. Also property taxes are inflated and I'd say Have to come down in the next two years.
In the New York/New Jersey area, you should be able to find a place that brings in around 3k a month for 1800 a month + heat and hot water if you have to pay for it. But there's plenty of places that are slated for the tenets to pay for it.
Oh you should be able to find these places for 200 to 250k, and hopefully the market around her won't crash below that.
Lowest you'll find is something for 500k and that would require a mortgage payment of $2690 a month. Good luck renting at that price.
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
-Frederick Bastiat
That's not true, you just have to look for a short sale/foreclosed property. Not saying that every house is a slam dunk, you have to find the right one. But since rates and home values have gone down it's a good idea to look. When the home values sink even more the rates are going to be going up so the payments will be the same anyway.JohnG@lt wrote:
You can't find anything outside of a ghetto for 200-250k in ny/li areacpt.fass1 wrote:
Ehh not so sure on that. the 1800 was including the property taxes. As far as investments are concerned there really isn't a thing as a stable one, and it's really hard to judge and read which direction our economy is going to be based. With as Volotial as our economy is, I don't think any one investment is a Smart one.JohnG@lt wrote:
You won't make a penny 'investing' in real estate in NY/NJ. You'll lose every penny of 'profit' in property taxes and upkeep.
Lowest you'll find is something for 500k and that would require a mortgage payment of $2690 a month. Good luck renting at that price.
That's low to low-medium for SoCal. $3K a month isn't much for $200K earners.JohnG@lt wrote:
Lowest you'll find is something for 500k and that would require a mortgage payment of $2690 a month. Good luck renting at that price.
It's not, but it's still not investment worthy. With the $625 a month in property taxes you're looking at $3315 a month. If you instead rent at $2000 a month and invest the difference it comes out to $15,780 a year extra that you can invest.Ilocano wrote:
That's low to low-medium for SoCal. $3K a month isn't much for $200K earners.JohnG@lt wrote:
Lowest you'll find is something for 500k and that would require a mortgage payment of $2690 a month. Good luck renting at that price.
$15,780 a year at 10% return will net you:
Years of work Total return Invested/Yr
1 $17,358.00 $15,780.00
2 $36,451.80 $15,780.00
3 $57,454.98 $15,780.00
4 $80,558.48 $15,780.00
5 $105,972.33 $15,780.00
6 $133,927.56 $15,780.00
7 $164,678.31 $15,780.00
8 $198,504.15 $15,780.00
9 $235,712.56 $15,780.00
10 $276,641.82 $15,780.00
11 $321,664.00 $15,780.00
12 $371,188.40 $15,780.00
13 $425,665.24 $15,780.00
14 $485,589.76 $15,780.00
15 $551,506.74 $15,780.00
16 $624,015.41 $15,780.00
17 $703,774.95 $15,780.00
18 $791,510.45 $15,780.00
19 $888,019.49 $15,780.00
20 $994,179.44 $15,780.00
21 $1,110,955.39 $15,780.00
22 $1,239,408.92 $15,780.00
23 $1,380,707.82 $15,780.00
24 $1,536,136.60 $15,780.00
25 $1,707,108.26 $15,780.00
26 $1,895,177.08 $15,780.00
27 $2,102,052.79 $15,780.00
28 $2,329,616.07 $15,780.00
29 $2,579,935.68 $15,780.00
30 $2,855,287.25 $15,780.00
$2.855M at the end of 30 years. Would you make $2.855M owning the home? No.
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
-Frederick Bastiat
It would be 360k with the home + the value of the home..
So at the end of 30 years with a 2% inflation assumed, the house is worth $652,090.17 and you're paying $9,781.35 a year in property taxes.cpt.fass1 wrote:
It would be 360k with the home + the value of the home..
Edit - You'll also, over 30 years, pay $355,468.72 in interest to the bank at the national average of 5.4% interest on a 30 year mortgage. So, $355,468.72 + $360,000 = $715,468.72 which is $63k more than what the house is actually worth at the end. You lost money buying the house.
Last edited by JohnG@lt (2010-01-06 11:00:05)
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
-Frederick Bastiat
It's a way of producing cash flow, cause you'll get paid from the rents. Then you can invest that positive cash flow into investments, meanwhile equity will grow in the property.
I know that we're still in leveling off with the market, which sucks, but it's still a worth wild investment at the moment. People are looking to rent instead of own which means that the demand is way less then the supply so you should be able to get great value for your money spent on homes. Also if the market does stay stable(which probably won't happen) you can sell the property in a year for more then you bought it for.
I know that we're still in leveling off with the market, which sucks, but it's still a worth wild investment at the moment. People are looking to rent instead of own which means that the demand is way less then the supply so you should be able to get great value for your money spent on homes. Also if the market does stay stable(which probably won't happen) you can sell the property in a year for more then you bought it for.
A home is not an investment unless you're paying off the mortgage quickly and avoiding interest. If you just make the monthly payment over 30 years you actually lose money.cpt.fass1 wrote:
It's a way of producing cash flow, cause you'll get paid from the rents. Then you can invest that positive cash flow into investments, meanwhile equity will grow in the property.
I know that we're still in leveling off with the market, which sucks, but it's still a worth wild investment at the moment. People are looking to rent instead of own which means that the demand is way less then the supply so you should be able to get great value for your money spent on homes. Also if the market does stay stable(which probably won't happen) you can sell the property in a year for more then you bought it for.
Selling the home for more? In a market that is not bubble fueled the annual increase in value for a home matches the inflation rate, which is normally 2%. So selling it in a year would net you a 2% gain. You've then lost more money than you've gained servicing the interest on the loan and in brokerage fees.
Last edited by JohnG@lt (2010-01-06 11:02:59)
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
-Frederick Bastiat
Here's a link for you:
http://finance.yahoo.com/real-estate/ar … hink-it-is
http://finance.yahoo.com/real-estate/ar … hink-it-is
Last edited by JohnG@lt (2010-01-06 11:08:43)
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
-Frederick Bastiat
Rent won't stay at $2K for that 30 years. Factor in rent increase. Then factor in rent after 30 years versus no P&I on the home after 30 years. Factor in house cost being paid plus income after it becomes a rental.
LOL at major repairs and improvements. Rental equivalent is moving into a more bigger and expensive rental. Cancelled out.
Example: Neighbors house next to my San Diego house. P&I about $1K. Leases it out for $2.5K after only occupying the house for 5 years prior. End result, $1K+ income versus rental.
LOL at major repairs and improvements. Rental equivalent is moving into a more bigger and expensive rental. Cancelled out.
Example: Neighbors house next to my San Diego house. P&I about $1K. Leases it out for $2.5K after only occupying the house for 5 years prior. End result, $1K+ income versus rental.
Last edited by Ilocano (2010-01-06 12:05:56)
Yeah I noticed that as well with the major repairs, that's the cost of a new house. The return on the money that you'd be paying for the mortgage and taxes with the income coming in would be 67% return.
It works as a smart investment, but then again you can't buy in rich neighborhoods.
It works as a smart investment, but then again you can't buy in rich neighborhoods.
Depends. Take San Diego with it's significant military population, for example. Military housing allowance allows even non-officers to afford to rent in nice neighborhoods.cpt.fass1 wrote:
Yeah I noticed that as well with the major repairs, that's the cost of a new house. The return on the money that you'd be paying for the mortgage and taxes with the income coming in would be 67% return.
It works as a smart investment, but then again you can't buy in rich neighborhoods.
Always pay your mortgages in large chunks at a time btw, the banks can't really charge you more on interest that wayJohnG@lt wrote:
Here's a link for you:
http://finance.yahoo.com/real-estate/ar … hink-it-is
http://us.news2.yimg.com/us.yimg.com/p/fi/10/90/95.gif
Banks usually make you pay half the interest and half the payment. Now it keeps the interest rates up if the payment remains high right? That's banks fuck people over
