Ponderable

Bruddah IZ said:
Profit yes, asset no.
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We established yesterday, very clearly, that the property you own and live in is listed as an “asset” on your financial statement. Even if it has a mortgage!
You may have an opinion about that, which you have expressed, but I can have an opinion that I don’t have to pay taxes to the feds. Doesn’t change the facts.
Today my point is different. And it is subject to opinion, unlike yesterday’s point.
You should buy a house, if you can afford it. Best personal financial move you can ever make, if you buy the right location. My suggestion would be San Pedro right now. Camarillo is a bit out of reach now but that would be good too. I think East LA/Boyle Heights will grow nicely over the next 5 years as well. These are just guesses, though.
Or you can keep paying rent and help your landlord pay his mortgage while you own nothing.
But maybe you move with your parents...in which case that might work for you!
 
messy said:
We established yesterday, very clearly, that the property you own and live in is listed as an “asset” on your financial statement. Even if it has a mortgage!
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No WE didn't. The Home that you live in doesn't even make it on to the balance sheet. It remains on your income statement as an "expense". That's why you have a mortgage. Your rental moves from the income statement as an expense to the balance sheet because it is an asset that produces net income after it pays off the monthly liability.
 
messy said:
You may have an opinion about that, which you have expressed, but I can have an opinion that I don’t have to pay taxes to the feds. Doesn’t change the facts.
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I don't have an opinion about cash flowing to the bank every month instead of you. It is a fact. You can have that opinion every month as long as you pay your mortgage every month. Supposedly that is how you buy equity. It's not free is it?
 
messy said:
Or you can keep paying rent and help your landlord pay his mortgage while you own nothing.
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Or you could pay the bank 60% interest a month after you bought 20% equity to avoid PMI. Deductions are a subsidy to the housing market and only artificially drive up the cost of homes so that your 20% purchase of equity is higher. In other words it's a wash.
 
Bruddah IZ said:
No WE didn't. The Home that you live in doesn't even make it on to the balance sheet. It remains on your income statement as an "expense". That's why you have a mortgage. Your rental moves from the income statement as an expense to the balance sheet because it is an asset that produces net income after it pays off the monthly liability.
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"No WE didn't."
images
 
Bruddah IZ said:
Or you could pay the bank 60% interest a month after you bought 20% equity to avoid PMI. Deductions are a subsidy to the housing market and only artificially drive up the cost of homes so that your 20% purchase of equity is higher.
/QUOTE]

Say hi to your mom and dad for me
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Bruddah IZ said:
Or you could pay the bank 60% interest a month after you bought 20% equity to avoid PMI. Deductions are a subsidy to the housing market and only artificially drive up the cost of homes so that your 20% purchase of equity is higher. In other words it's a wash.
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“KISS.” Keep it simple, stupid. Quit deciding ways to talk yourself out of the best financial move you will ever make.
 
messy said:
Yes. I think it’s largely symbolic. Most undocumented immigrants have been here more than 10 years and increasing amounts have overstayed their visa.
So whatever your opinions on whether or not you want them here, there would seem to be more effective ways to spend billions getting rid of them than building a wall.
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When was the ladt time you were in San Ysidro?
 
messy said:
“KISS.” Keep it simple, stupid. Quit deciding ways to talk yourself out of the best financial move you will ever make.
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I am keeping it simple. Net Income from your home/Total Average Asset = Return on Asset. Oh right, the equity. Net income/Total Average Equity= Return on Equity. Pretty simple. The Net Income from your domicile has been elusive thus far.
 
Bruddah IZ said:
I am keeping it simple. Net Income from your home/Total Average Asset = Return on Asset. Oh right, the equity. Net income/Total Average Equity= Return on Equity. Pretty simple. The Net Income from your domicile has been elusive thus far.
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That’s not simple at all. That’s an equation. Deal in reality. If you buy a house for $500K at a 4% loan, 20% down, and you live in it (remember how I told you the rent you save is essentially income, so count that rental value as income...) and you sell it for $750K in 4 years, how much did you make on your cash investment, as a percentage?
 
Bruddah IZ said:
I am keeping it simple. Net Income from your home/Total Average Asset = Return on Asset. Oh right, the equity. Net income/Total Average Equity= Return on Equity. Pretty simple. The Net Income from your domicile has been elusive thus far.
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If you can’t answer the simple question of whose mortgage you pay, your own or your landlord’s, how can we have a dialogue?
 
messy said:
If you can’t answer the simple question of whose mortgage you pay, your own or your landlord’s, how can we have a dialogue?
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We seem to be dialoguing just fine with both yours and my mortgage not generating any monthly net income to fit the definition of an asset.
 
messy said:
That’s not simple at all. That’s an equation. Deal in reality. If you buy a house for $500K at a 4% loan, 20% down, and you live in it (remember how I told you the rent you save is essentially income, so count that rental value as income...) and you sell it for $750K in 4 years, how much did you make on your cash investment, as a percentage?
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Its very simple. All that is missing is the monthly Net Income which you've not provided from the begining of our conversation. How can we have a dialogue if you keep holding out your property as if is generating income when it's not?
 
Bruddah IZ said:
We seem to be dialoguing just fine with both yours and my mortgage not generating any monthly net income to fit the definition of an asset.
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Who is the numbnuts who told you that an asset must produce income?
It’s not the dictionary definition nor the bank definition.
 
Bruddah IZ said:
Its very simple. All that is missing is the monthly Net Income which you've not provided from the begining of our conversation. How can we have a dialogue if you keep holding out your property as if is generating income when it's not?
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My house that I live in doesn’t generate net income. It just gives me an expensive place to live instead of paying rent and generates a shockingly impressive addition to my net worth...far more important than income.
These are the reasons I’m so much wealthier than you. Why aren’t you learning?
 
messy said:
My house that I live in doesn’t generate net income. It just gives me an expensive place to live instead of paying rent and generates a shockingly impressive addition to my net worth...far more important than income.
These are the reasons I’m so much wealthier than you. Why aren’t you learning?
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If your net worth is far more important than income, stop work, and live on your net worth.....and humility.
 
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