Thursday, June 14, 2007
Then again...
When I finally took the plunge and bought my car, I first secured financing via Capital One. The rate was high, but I wasn't that perturbed; I just wanted to buy a reliable car. I first went to a Toyota dealer in Yonkers, fell for a bait and switch, got dissed, and left in a major hurry. I was pissed to say the least, and swore off buying a car for the immediate future. I even spoke to my then girlfriend and vented. One quick trip to the Toyota dealer in Mamaroneck, and I was the proud owner of a 2002 Corolla with only 26K on it. :)
I repeat this tale to add some perspective to my last post. I said I was considering buying a place, but my ongoing financial meltdown and total lack of cash made this difficult and probably a bad idea. That said, I was researching places, and I found a nice co-op in Croton for only 69,999. It's been on the market for a while, and I can probably talk them down to 60K. The complex allows cats as per the realtor, so the choice was easy. With that in mind, I spoke to a friend who is also a mortgage broker, and he's on the case. I also shifted some money from stocks and bonds to the money market portion of my retirement fund, so I can borrow a down payment if needed. I can also inflate my bank accounts to seem wealthier than I really am. The co-op board must approve my purchase, and few mundane tasks will terrify a New Yorker more than the phrase: "you need to be approved by the co-op board." Even worse, the denial comes with little recourse unless I could prove discrimination. Few boards are this dumb, so I have a contingency plan: a condo (no approval needed) in Fishkill. It's a bit far, but I'm not really in the mood to live in my walk up any more than needed.
This begs the question: what about all the other stuff I've been blogging for the past year or so? Good question. None of what I've been planning is off the table due to buying a place; in fact, it may be the start of finally putting these plans into motion. The real question is the value of the apartment as an investment. As per the http://thehousingbubbleblog.com/, the market is, politely put, in the shitter. Too many homes were built and then purchased with mortgages the were BY DESIGN not meant to be paid off, rather refinanced at a later date. No one mentioned the prepayment penalties, and no one asked either. As such, people are waiting for the bubble to burst, and althoug it is as we speak; it will get much worse before it gets better.This is probably the best reason not buy anything right now, but I do have an answer: I cannot forsee the value of the apartment falling that much between now and when I would sell it. Furthermore, I can rent the apartment (possibly to my mom) after living there for one year. It would pay for itself while Karl and I commence taking over the world. Also, the tax benefits to homeownership are HUGE, although I cannot quite articulate how you benefit. Scott knows all this much better than I do, so I'll ask him to explain it to me. I also printed out a form from the IRS to explain the benefits as well. Yes, I can understand tax guides from the IRS; I file government forms for a living.
Anyway, things are bouncing along. More later.
I repeat this tale to add some perspective to my last post. I said I was considering buying a place, but my ongoing financial meltdown and total lack of cash made this difficult and probably a bad idea. That said, I was researching places, and I found a nice co-op in Croton for only 69,999. It's been on the market for a while, and I can probably talk them down to 60K. The complex allows cats as per the realtor, so the choice was easy. With that in mind, I spoke to a friend who is also a mortgage broker, and he's on the case. I also shifted some money from stocks and bonds to the money market portion of my retirement fund, so I can borrow a down payment if needed. I can also inflate my bank accounts to seem wealthier than I really am. The co-op board must approve my purchase, and few mundane tasks will terrify a New Yorker more than the phrase: "you need to be approved by the co-op board." Even worse, the denial comes with little recourse unless I could prove discrimination. Few boards are this dumb, so I have a contingency plan: a condo (no approval needed) in Fishkill. It's a bit far, but I'm not really in the mood to live in my walk up any more than needed.
This begs the question: what about all the other stuff I've been blogging for the past year or so? Good question. None of what I've been planning is off the table due to buying a place; in fact, it may be the start of finally putting these plans into motion. The real question is the value of the apartment as an investment. As per the http://thehousingbubbleblog.com/, the market is, politely put, in the shitter. Too many homes were built and then purchased with mortgages the were BY DESIGN not meant to be paid off, rather refinanced at a later date. No one mentioned the prepayment penalties, and no one asked either. As such, people are waiting for the bubble to burst, and althoug it is as we speak; it will get much worse before it gets better.This is probably the best reason not buy anything right now, but I do have an answer: I cannot forsee the value of the apartment falling that much between now and when I would sell it. Furthermore, I can rent the apartment (possibly to my mom) after living there for one year. It would pay for itself while Karl and I commence taking over the world. Also, the tax benefits to homeownership are HUGE, although I cannot quite articulate how you benefit. Scott knows all this much better than I do, so I'll ask him to explain it to me. I also printed out a form from the IRS to explain the benefits as well. Yes, I can understand tax guides from the IRS; I file government forms for a living.
Anyway, things are bouncing along. More later.
