The Economics of a Second Home
Yesterday the newish blog Upstater posed the oft-considered question, Can you afford a country house? Like the decision whether to buy or rent your primary residence, the answer lies partly on cold, hard numbers and partly in emotions and psychology. Having just spent some time out of the city last month around a number of…
Yesterday the newish blog Upstater posed the oft-considered question, Can you afford a country house? Like the decision whether to buy or rent your primary residence, the answer lies partly on cold, hard numbers and partly in emotions and psychology. Having just spent some time out of the city last month around a number of folks who own their second houses, we’d say it doesn’t sound like a worthwhile move financially to us when you throw in the cost and headaches of maintenance, groundskeeping and the inevitable lure of upgrades like pools and tennis courts. Mix in the pangs of guilt that will inevitably strike on those weekends when you want to stay in the city and renting starts to look pretty good. Assuming you can afford to do either, where do you come down on the issue?
For anyone looking for a unique 2nd home option, I know a group of families that are selling their bungalow colony in Sullivan county and have had no luck with the local realtors up there. Near white lake, bethel woods, etc. There are 8 bungalows, an in ground pool, and some outbuildings….I think they would take $100-$150k for everything. Needs tlc but there is running water, electric…email me if you’re interested at simplyhousing@ gmail.com
Yeah pretzel I got to agree with DIBS there – 7% (invested in the market) is pretty damn good. Although I still say you’d be better off in Muni’s (after tax) 7% in the market aint worth the risk.
DIBS I totally agree:
“two of every three dollars that the US government spends is spent on entitlements.”
And entitlements are essentially medicare/aid and SS. I agree, and I agree with raising the retirement age, and cutting down on procedures at end of life (death panels) and I agree with means testing medicare, etc….
But guess what NEITHER the Dems NOR the GOP agree on the above – (well maybe Paul Ryan does but despite the vote, everyone is running from him now) So try reading what I wrote – until people agree to give up somewhat on their entitlements – you have to raise taxes also,
Man DIBS your like a GOP soundbite machine……
Very few working Americans pay “no taxes” – payroll taxes and income taxes all go to the same place (regardless of what the uninformed think). and Payroll taxes (as a source of tax revenue) are almost equal to income taxes.
Plus it isn’t (to me) a matter of “fair share” – that is the Dems stupidity – its a matter of we need revenue to pay for the things that virtually ALL Americans want – SS, Medicare, Military, Unemployment benefits, Transportation. (all other spending is immaterial as a % of budget). So the question is where do you get it??
Poor people got no money,
Working People [middle class and higher] already pay alot (payroll and possibly income) – although the 110k cut off for SS/medicare makes no sense, so Id eliminate that
Therefore until all the hypocrites that elect people in the country agree to give up their SS, Medicare, Military, etc…. I advocate taxing, the dead (estate), those with an extra or really expensive home (mortgage interest), those that are straight up cheating (hedge fund carried interest B.S. = its income we all know it), those that are benefiting from our society the most (i.e. making over 1M a year – not as punishment; but as a rich guy I’ll pay more to keep the status quo) with all that plus making the upper middle pay more for their SS and medicare should about cover it.
Of course we could put in “death panels” and bring some sanity to spending trillions for peoples final 2mo on this planet – but alas our fiscally conservative GOPers would never allow that!
“It’s also completely ludicrous to think that you can just end it.” Ludicrous to just end the mortgage tax deduction?? Maybe
On 2nd homes – not at all ludicrous
On mortgages greater than 720k – not ludicrous
Figures – I assumed you were a Herman Cain guy
Not exactly – I support changing the law to eliminate this (and other) tax policies. I gather you wouldnt
Not exactly – I support changing the law to eliminate this (and other) tax policies. I gather you wouldnt
I am not “going off” on people writing off their 2nd home – I am going off on a tax policy that allows people to write off the interest for borrowing for a 2nd home, Nor do I condemn people for taking advantage of the law (if I had a 2nd home I would too), I just think our tax laws should be changed.