VABills Posted March 25, 2008 Posted March 25, 2008 I think that is an excellent point. There is just something about paying taxes that rub people the wrong way. They justify paying 1 million for a 1100 sq foot ranch in California or Miami & live like a bunch of animals right on top of each other. But hey, at least they are not paying high taxes I guess What rubs them wrong, is the government time and again shows they cannot properly sepnd the money. The group in WNY has a bad habit of hiring more and more government worker, never any cutback, yet the city has shrunk to 1/3 of it's size from the 60's. They keep people on the government dole by raising taxes, and you have salaries of underworked teacher at over 100k. That is complete and total garbage and is a reason why folks hate to see the whole tax and spend. I have no problem spending money on taxes as long as there is real benefit. But just to not have layoffs and guarantee government jobs for life is not of any benefit to anyone except those who are lucky to be in those jobs.
Gordio Posted March 25, 2008 Posted March 25, 2008 What rubs them wrong, is the government time and again shows they cannot properly sepnd the money. The group in WNY has a bad habit of hiring more and more government worker, never any cutback, yet the city has shrunk to 1/3 of it's size from the 60's. They keep people on the government dole by raising taxes, and you have salaries of underworked teacher at over 100k. That is complete and total garbage and is a reason why folks hate to see the whole tax and spend. I have no problem spending money on taxes as long as there is real benefit. But just to not have layoffs and guarantee government jobs for life is not of any benefit to anyone except those who are lucky to be in those jobs. I never said they spent the money right. What Im trying to say is that I find it funny that it bothers people to spend 5-6K on taxes in WNY on a nice house & the same people that B word about this dont have any problem spending $500K & up on a piece of sh*t house that you can get in buffalo for $75K. My point is that the low housing market in buffalo more then offsets the high taxes.
VABills Posted March 25, 2008 Posted March 25, 2008 I never said they spent the money right. What Im trying to say is that I find it funny that it bothers people to spend 5-6K on taxes in WNY on a nice house & the same people that B word about this dont have any problem spending $500K & up on a piece of sh*t house that you can get in buffalo for $75K. My point is that the low housing market in buffalo more then offsets the high taxes. To a point. But if you plan on moving ever you won't see the steady increase either, so you lose there. And that profit could be used to buy a house elsewhere. But think about it an I'll keep the math simple. If you get a 30 year interest only first 10 (like I said keep it simple). Similar houses in Buffalo area vs. Nothern VA, outside beltway. 2500 sqft home with basement. Buffalo - 250K DC (right now) - 600K monthly mortgage Buff 250K * .05 = 1250 DC 600K *.05 = 3000 Now add taxes based on assessed value Buff taxes = 500/month DC taxes = 200/month So the house in Buffalo cost 1750/month DC cost 3200/month Now 10 years from now you sell. the house in Buffalo may get a 1%/yr value increase so maybe 265K in DC, you'll get 7-10% average - so that same house in dc goes for 1.2 million in 10 years. Real cost Buffalo (1750*12months*10years)-15K profit = 195000 out of pocket DC (3200*12months*10years)-600K profit = 216000 profit into your pocket All while having better paying jobs, better opportunity for growth, better weather, and a football/basketball/baseball/hockey team to watch in 10 years. Granted much worse traffic, and not as good of food. In Buffalo you get better food, slightly better schools (maybe as Fairfax and Mont County are consider to be 2 of the top 10 counties in the country), and less traffic. But in 10 years the Bills will be in Toronto, the Sabres in hamilton, no nba, no baseball.
Gordio Posted March 25, 2008 Posted March 25, 2008 To a point. But if you plan on moving ever you won't see the steady increase either, so you lose there. And that profit could be used to buy a house elsewhere. But think about it an I'll keep the math simple. If you get a 30 year interest only first 10 (like I said keep it simple). Similar houses in Buffalo area vs. Nothern VA, outside beltway. 2500 sqft home with basement. Buffalo - 250K DC (right now) - 600K monthly mortgage Buff 250K * .05 = 1250 DC 600K *.05 = 3000 Now add taxes based on assessed value Buff taxes = 500/month DC taxes = 200/month So the house in Buffalo cost 1750/month DC cost 3200/month Now 10 years from now you sell. the house in Buffalo may get a 1%/yr value increase so maybe 265K in DC, you'll get 7-10% average - so that same house in dc goes for 1.2 million in 10 years. Real cost Buffalo (1750*12months*10years)-15K profit = 195000 out of pocket DC (3200*12months*10years)-600K profit = 216000 profit into your pocket All while having better paying jobs, better opportunity for growth, better weather, and a football/basketball/baseball/hockey team to watch in 10 years. Granted much worse traffic, and not as good of food. In Buffalo you get better food, slightly better schools (maybe as Fairfax and Mont County are consider to be 2 of the top 10 counties in the country), and less traffic. But in 10 years the Bills will be in Toronto, the Sabres in hamilton, no nba, no baseball. I agree with that somewhat. Thanks for brightening up my morning. This whole subprime mess though I believe has gone down because the average person in big cities like dc/ny/miami etc.. have found it nearly impossible in those markets to buy a nice house or even a 1/2 way decent house. Living in a bigger city is nice if you make a ton of money. If your not making a ton of money, your going to be scraping by.
KnightRider Posted March 25, 2008 Posted March 25, 2008 ... Now 10 years from now you sell. the house in Buffalo may get a 1%/yr value increase so maybe 265K in DC, you'll get 7-10% average - so that same house in dc goes for 1.2 million in 10 years. ... 1% is optimistic. My parents bought a 3 bedroom cape off Sweet Home in Amherst in 1993 for ~$73k. They finally gave up on a bull real estate market and sold in 2006 for ~$68k.
Gordio Posted March 25, 2008 Posted March 25, 2008 1% is optimistic. My parents bought a 3 bedroom cape off Sweet Home in Amherst in 1993 for ~$73k. They finally gave up on a bull real estate market and sold in 2006 for ~$68k. When I first got married back in 2001 my wife & I bought a house for 98,500 in Lancaster. NIce house, just a little small. We sold it 2 years ago(2006) for 135,00. I dont know what neighborhood your parents have a house in, but I dont think that is the norm in the suburbs.
JoeFerguson Posted March 25, 2008 Posted March 25, 2008 1% is optimistic. My parents bought a 3 bedroom cape off Sweet Home in Amherst in 1993 for ~$73k. They finally gave up on a bull real estate market and sold in 2006 for ~$68k. I think it really depends on where you buy. I know that neighborhood. Nothing has changed to make an outsider want to move TO that neighborhood. But Gordio's example in Lancaster is a little different.
KnightRider Posted March 25, 2008 Posted March 25, 2008 I think it really depends on where you buy. I know that neighborhood. Nothing has changed to make an outside want to move TO that neighborhood. But Gordio's example in Lancaster is a little different. Yup. It is a decent, if aging, blue collar neighborhood within walking distance of the Blvd Mall. There really isn't much of a market for those homes. FWIW, in Mass, I bought in 2001 for $267k also and sold in 2007 for $331k a 3 bed 1 bath ranch for similar reasons.
agilen Posted March 25, 2008 Posted March 25, 2008 To a point. But if you plan on moving ever you won't see the steady increase either, so you lose there. And that profit could be used to buy a house elsewhere. But think about it an I'll keep the math simple. If you get a 30 year interest only first 10 (like I said keep it simple). Similar houses in Buffalo area vs. Nothern VA, outside beltway. 2500 sqft home with basement. Buffalo - 250K DC (right now) - 600K monthly mortgage Buff 250K * .05 = 1250 DC 600K *.05 = 3000 Now add taxes based on assessed value Buff taxes = 500/month DC taxes = 200/month So the house in Buffalo cost 1750/month DC cost 3200/month Now 10 years from now you sell. the house in Buffalo may get a 1%/yr value increase so maybe 265K in DC, you'll get 7-10% average - so that same house in dc goes for 1.2 million in 10 years. Real cost Buffalo (1750*12months*10years)-15K profit = 195000 out of pocket DC (3200*12months*10years)-600K profit = 216000 profit into your pocket All while having better paying jobs, better opportunity for growth, better weather, and a football/basketball/baseball/hockey team to watch in 10 years. Granted much worse traffic, and not as good of food. In Buffalo you get better food, slightly better schools (maybe as Fairfax and Mont County are consider to be 2 of the top 10 counties in the country), and less traffic. But in 10 years the Bills will be in Toronto, the Sabres in hamilton, no nba, no baseball. Your logic is somewhat flawed....you are assuming that real estate is your only investment, and also that the price of your house in DC is going to double in 10 years....which while that may have happened in the last 10 years, historically speaking thats not very likely. Now, better paying jobs aside (they aren't all better paying down there, but most probably are) assume you took the same amount of money in both places. If you put 10% down...$25k in Buffalo, $60k in DC. If you took that extra $35k and put it into equities, and added your extra $1450/month you saved on your mortgage, then after 10 years you'd pretty much cover the difference in your calculation above. Plus, you would be much, much more diversified...if housing prices crashed in your area, you could be in some trouble, because all of your net worth is tied up in your house. The money you have in the market (assuming you are long on everything) can't ever go below what you put into it.
EndZoneCrew Posted March 25, 2008 Posted March 25, 2008 Your logic is somewhat flawed Don't worry.....Every opinion he has is flawed on some level
VABills Posted March 25, 2008 Posted March 25, 2008 Your logic is somewhat flawed....you are assuming that real estate is your only investment, and also that the price of your house in DC is going to double in 10 years....which while that may have happened in the last 10 years, historically speaking thats not very likely. Now, better paying jobs aside (they aren't all better paying down there, but most probably are) assume you took the same amount of money in both places. If you put 10% down...$25k in Buffalo, $60k in DC. If you took that extra $35k and put it into equities, and added your extra $1450/month you saved on your mortgage, then after 10 years you'd pretty much cover the difference in your calculation above. Plus, you would be much, much more diversified...if housing prices crashed in your area, you could be in some trouble, because all of your net worth is tied up in your house. The money you have in the market (assuming you are long on everything) can't ever go below what you put into it. You missed this line: like I said keep it simple Also, you're missing the salaries difference in your equation. There is a huge disparity, outside teachers it seems, between the two. Senior techincal people at a preivate company in this area easily have 6 figure incomes even non-managers. In Buffalo I would venture to believe any non-management senior staff has salaries on average over 60k.
Lurker Posted March 25, 2008 Posted March 25, 2008 Real cost Buffalo (1750*12months*10years)-15K profit = 195000 out of pocket DC (3200*12months*10years)-600K profit = 216000 profit into your pocket You forgot to add in the psychic value of not having to live in DC (shorter commutes, friendlier people, access to a world-class city 90 miles away, etc.). In other words, actually enjoying life during those 10 years...
Chef Jim Posted March 25, 2008 Posted March 25, 2008 You forgot to add in the psychic value of not having to live in DC (shorter commutes, friendlier people, access to a world-class city 90 miles away, etc.). In other words, actually enjoying life during those 10 years... That's just sad.
VABills Posted March 25, 2008 Posted March 25, 2008 You forgot to add in the psychic value of not having to live in DC (shorter commutes, friendlier people, access to a world-class city 90 miles away, etc.). In other words, actually enjoying life during those 10 years... I don't know, I have met some of the folks from there, who post on this board. many are friendly but not all. World class cit here is 10 miles away. My commute is 4 miles. Plenty and in fact most jobs in the DC area are outside the beltway anymore or at the beltway. But I did mention traffic. I also mentioned better weather, access to skiing 1 hour away, I have friendly neighbors, of course a lot are military folks and for the most part very personable to their brother in arms less so to the northern snooty liberals.
gmac17 Posted March 25, 2008 Posted March 25, 2008 That's just sad. I'm the biggest buffalo cheerleader you'll find but I agree.
agilen Posted March 25, 2008 Posted March 25, 2008 You missed this line: Also, you're missing the salaries difference in your equation. There is a huge disparity, outside teachers it seems, between the two. Senior techincal people at a preivate company in this area easily have 6 figure incomes even non-managers. In Buffalo I would venture to believe any non-management senior staff has salaries on average over 60k. I am just noting that you are assuming your house is your only investment, and when you spend that much $$ on a house.....it probably is. And since I've just recently moved back to Buffalo from the NYC burbs, (and I'm a "non-management senior staff" software developer), I'm quite familiar with compensation in the Buffalo area. It is definitely less, but not anywhere near the disparity in your above housing-payment calculations.
Chef Jim Posted March 25, 2008 Posted March 25, 2008 I am just noting that you are assuming your house is your only investment, and when you spend that much $$ on a house.....it probably is. And since I've just recently moved back to Buffalo from the NYC burbs, (and I'm a "non-management senior staff" software developer), I'm quite familiar with compensation in the Buffalo area. It is definitely less, but not anywhere near the disparity in your above housing-payment calculations. Your home should not be considered an investment at all.
VABills Posted March 25, 2008 Posted March 25, 2008 I am just noting that you are assuming your house is your only investment, and when you spend that much $$ on a house.....it probably is. And since I've just recently moved back to Buffalo from the NYC burbs, (and I'm a "non-management senior staff" software developer), I'm quite familiar with compensation in the Buffalo area. It is definitely less, but not anywhere near the disparity in your above housing-payment calculations. Very bad assumption. Your logic is flawed.
Lurker Posted March 25, 2008 Posted March 25, 2008 That's just sad. I forgot to add it takes 60-70 minuets to get to TO...less time than needed to circumnavivate the DC beltway, even during off-peak hours....
VABills Posted March 25, 2008 Posted March 25, 2008 I forgot to add it takes 60-70 minuets to get to TO...less time than needed to circumnavivate the DC beltway, even during off-peak hours.... No not really, takes less than an hour. But why would you want to. kind of blows the concept, huh?
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