If I spent my last, and only $200,000 on a gold....and never again made another single dime of income.....do I own that bullion?
Technically speaking, you only own it outright if you never sell it at a profit. At least that is how the tax laws are written, so that we never fail to finance some politician's utopian pipe dream and pay off his political machine cronies in the process.
Q: Are You Printing Money? Bernanke: Not Literally
<< <i> However, no one actually "owns" the home they live in. The government does. . >>
If anyone sells their home, they receive all the profits after taxes and other bills, therefore they are the owner. >>
Then explain to me how the non-payment of annual taxes will result in you NOT owning the home for very much longer. I own my gold....I own every item on my desk right now....I own a vehicle....I own this snickers bar. Because you have to pay taxes on property in perpetuity, you NEVER own that home. You may control the rights to the home, as long as the taxes are current. But if you think a "paid off" home is owned by you....just fall behind on the taxes and see who truly owns that piece of property. >>
Well don't pay taxes on food, fuel, or a vehicle and see what you get. There's taxes on everything including your income. I'm not sure what the point is like taxes only apply to a house. >>
You are seriously missing the point. I pay the purchase price AND taxes all at once on other items....then I truly OWN them. If I bought a $200,000 house...with cash and never have another dime of income the rest of my life.....do I own it? If I spent my last, and only $200,000 on a gold....and never again made another single dime of income.....do I own that bullion? >>
No you don't you sell your gold guess what taxes, your cars taxed every year in the form of a license, a renter pays taxes too it's just included in the rent. The complex taxes goes up and guess who's paying those? You don't even own your own salary, they decide how much you can keep. Nothing is free and the rules can change at a moments notice.
Seems to me a spot under the bridge is about the same for the homeowner as it is the renter with no money. The big difference in renting vs owning. You can sell a house that's paid off for something even if it's 20 or 30 cents on the dollar. A renter is just SOL.
Funny you should ask, We just sent in our last house payment. With CD's only paying 1% and our mortgage was 5.75% used one of our CD's to pay the house off in full! (saved over 80K in interest)
Both retired with no debt and living the good life.
<< <i>Gold, silver and platinum have helped to triple our net worth, so Dave Ramsey can simply go pound sand with his biased drivel. >>
Ramsey has some good advice but is a total idiot in some of his thoughts. He stated once on his show that gold/silver had never been used to buy anything in the past. Being a christian and all I thought about calling him and telling him he may want to read the Bible. >>
i'll listen to him once in a while. he's fine for getting folks out of debt and on a budget. but all the rah-rah and boasting on his show is not found anywhere in the Book....i know...he is a public personality and needs a soapbox, but still. i wouldn't go as far as calling him an idiot though.
One paid off a decade ago. One on a 3.75% 15 year note.
Sold off 3 homes and 5-plex apartment by 2006.
Ramsey: good for getting people motivated to be debt free and having an emergency fund. On investment advice, I find myself yelling at the radio when he's on. Clueless when it comes to PM's and a total lack of understanding of today's dire straits pertaining to gov't debt which I find rather ironic.
I am mortgage free. I saw the housing meltdown coming and unloaded my house and a condo in San Francisco well beforehand. I rent now. Not only that but I rent a house that has been protected by Prop 13 since the mid-80's and Jerry Brown gets a mere pittance of what he would if I were to purchase it and reset the valuation. It is, in a quiet and unassuming way, how I give the finger to the state of California.
I wonder if anyone ever did a 30 year cost analysis on renting a home at $1,500/month as to paying a mortgage at $1,500.00 a month and
In a 30 year scenario, assuming a reasonable amount of inflation, the mortgage is the least of your worries. Costs that rise with inflation are the dominant factors. Does the rent rise at the same rate as expenses, is the key question I would think.
and replace it with a real estate tax payment that has grown to the size of your mortgage payment
you never are free.....
unless some states get thier budgets inline.
BTW, with fixed rate loans soooo low, why bother paying it off? You will be paying it off with monopoly dollars in the future, or it will end with some Gov't subsidy.
The way I see it, the only ones to get hurt in the future....are the responsible type with no dollar debt and huge dollar savings.
I still have a few years left on a low rate 15yr mortgage, but pay down as much as I can. I hate debt.
My big concern for housing is what will happen once the government revises the tax code, getting rid of the mortgage deduction? The sector is in horrible shape as is.
Both the Obama administration and Congress appear to be in favor of dramatically lowering income tax rates, while getting rid of deductions.
Of course, a few years after they do this, they'll raise the tax rates again, but there won't be the deductions we're used to now.
Comments
Technically speaking, you only own it outright if you never sell it at a profit. At least that is how the tax laws are written, so that we never fail to finance some politician's utopian pipe dream and pay off his political machine cronies in the process.
I knew it would happen.
<< <i>
<< <i>
<< <i>
<< <i>
<< <i>
However, no one actually "owns" the home they live in. The government does. . >>
If anyone sells their home, they receive all the profits after taxes and other bills, therefore they are the owner. >>
Then explain to me how the non-payment of annual taxes will result in you NOT owning the home for very much longer. I own my gold....I own every item on my desk right now....I own a vehicle....I own this snickers bar. Because you have to pay taxes on property in perpetuity, you NEVER own that home. You may control the rights to the home, as long as the taxes are current. But if you think a "paid off" home is owned by you....just fall behind on the taxes and see who truly owns that piece of property.
Well don't pay taxes on food, fuel, or a vehicle and see what you get. There's taxes on everything including your income. I'm not sure what the point is like taxes only apply to a house. >>
You are seriously missing the point. I pay the purchase price AND taxes all at once on other items....then I truly OWN them. If I bought a $200,000 house...with cash and never have another dime of income the rest of my life.....do I own it? If I spent my last, and only $200,000 on a gold....and never again made another single dime of income.....do I own that bullion? >>
No you don't you sell your gold guess what taxes, your cars taxed every year in the form of a license, a renter pays taxes too it's just included in the rent. The complex taxes goes up and guess who's paying those? You don't even own your own salary, they decide how much you can keep. Nothing is free and the rules can change at a moments notice.
Seems to me a spot under the bridge is about the same for the homeowner as it is the renter with no money. The big difference in renting vs owning. You can sell a house that's paid off for something even if it's 20 or 30 cents on the dollar. A renter is just SOL.
With CD's only paying 1% and our mortgage was 5.75% used one of our CD's to pay the house off in full!
(saved over 80K in interest)
Both retired with no debt and living the good life.
GOD IS GOOD
BLESSINGS
<< <i>
<< <i>Gold, silver and platinum have helped to triple our net worth, so Dave Ramsey can simply go pound sand with his biased drivel. >>
Ramsey has some good advice but is a total idiot in some of his thoughts. He stated once on his show that gold/silver had never been used to buy anything in the past. Being a christian and all I thought about calling him and telling him he may want to read the Bible.
i'll listen to him once in a while. he's fine for getting folks out of debt and on a budget. but all the rah-rah and boasting on his show is not found anywhere in the Book....i know...he is a public personality and needs a soapbox, but still. i wouldn't go as far as calling him an idiot though.
Sold off 3 homes and 5-plex apartment by 2006.
Ramsey: good for getting people motivated to be debt free and having an emergency fund. On investment advice, I find myself yelling at the radio when he's on. Clueless when it comes to PM's and a total lack of understanding of today's dire straits pertaining to gov't debt which I find rather ironic.
Liberty: Parent of Science & Industry
In a 30 year scenario, assuming a reasonable amount of inflation, the mortgage is the least of your worries. Costs that rise with inflation are the dominant factors. Does the rent rise at the same rate as expenses, is the key question I would think.
The governments charge me $400 per month to do that someday.
and replace it with a real estate tax payment that has grown to the size of your mortgage payment
you never are free.....
unless some states get thier budgets inline.
BTW, with fixed rate loans soooo low, why bother paying it off? You will be paying it off with monopoly dollars in the future, or it will end with some Gov't subsidy.
The way I see it, the only ones to get hurt in the future....are the responsible type with no dollar debt and huge dollar savings.
My big concern for housing is what will happen once the government revises the tax code, getting rid of the mortgage deduction? The sector is in horrible shape as is.
Both the Obama administration and Congress appear to be in favor of dramatically lowering income tax rates, while getting rid of deductions.
Of course, a few years after they do this, they'll raise the tax rates again, but there won't be the deductions we're used to now.