Weird Presents Anyone? 1406
g8way writes "Now that Christmas is about, it's time for presents. A joyous occasion with much drinking, fruitcake, and butt-ugly sweaters. What's the weirdest gift you've gotten so far? Personally, I got toothpaste, tic-tacs, deodorant, and a McDonalds coupon book in the same package. What's your story of Christmas present mayhem?"
Re:Blow-up doll (Score:5, Informative)
Re:My iPod (Score:5, Informative)
Re:Blow-up doll (Score:2, Informative)
Congratulations! (Score:5, Informative)
I would count it as extraordinarily difficult to save enough money for a downpayment for a house in, say, Southern California (where I live) and similar areas. For the entry level house I just bought in Woodland Hills, the price was $428,000. Woodland Hills is an upscale suburb but doesn't have the cachet of, say, Beverly Hills or Malibu, where entry-level homes start at around twice that. If you consider that typical entry-level homes in the downscale suburb of Canoga Park start at close to $350,000, I think I got a real deal.
I'm presently renting a house for $1,400 a month, which is way under market. My landlord sold it out from under me, and I checked rental options and found them all horribly expensive. So I talked to a very nice realtor, and he, together with a great mortgage broker, showed me that a good house wasn't beyond my means, despite my lack of savings other than company 401(k).
In the end, I had to withdraw money from the 401(k) just to rarise the 3% deposit needed to prove that you're serious about the house, and to pay closing costs. My lender gave me 100% financing in a first and second mortgage, with a total payment of around $2,750 a month. Property taxes add another $500-odd a month. However, virtually all of this is tax-deductible, on both federal and state returns. The bottom line is that I get about $1,000 of that from the taxman, so my net cost is $2,250 a month.
I used some extra money from the 401(k) withdrawl to pay back all my debt. With my debt paid down to zero thanks to the 401(k) withdrawl, my net cost of housing + debt - tax deductions is actually going to be a bit lower than were I was before.
A nice bit of fiscal alchemy.
If - and only if - you believe your real estate market will continue to do well, 100% financing may make sense, even though it doesn't sound like a good idea when you first look at it. The tax deductions really help hugely, taking really scary numbers and bringing them down to reality.
Here in Southern California, there are huge population pressures, and the economy is diversified enough to continue to do well. So on balance, I think home ownership here is a reasonable gamble. The fact that my home, being a tiny but beautifully made place on a hillside, is in a unique area with extremely low housing turnover also helps.
I have lots of plans for my new home, and I think it's going to be a great experience. And to be honest, I don't think I could have ever saved the amount of money needed without 100% financing.
If you want to own a home, I think it's well worth considering.
D
For the anatomically challenged (Score:1, Informative)
How to get First Post without even trying (Score:5, Informative)
Look at the content of a highly moderated post farther down on the page and regurgitate it as a reply to a first post.
It looks like it's an original thought and it's at the top of the page!
If a post has nothing to do with the parent post, don't moderate it up. Chances are it's redundant from something posted earlier but farther down.
You should have posted to the real first post (and changed the title so it's not "re:") which is most likely moderated at a -1. Then it looks like you post is the parent post to those who don't browse at that level. Badabing! First Post. Without even trying.
Ben
Christians using Darwin (Score:5, Informative)
If you research his life and theory you may discovers some interesting facts.
But don't let that stop you from poking fun at Christians. It helps keep us on our toes.
Re:It's because... (Score:3, Informative)
It paid off very well this xmas...
Re:Microsoft Games Goddamnit!! (Score:3, Informative)
My whining is enterely to Slashdot, never to my Mother.
Sorry for you loss, Merry Christmas.
Re:I got a goat (Score:2, Informative)
Re:Congratulations! (Score:1, Informative)
Let me make it a point to be very cautious with your spending over the next year. I don't know if you escrowed your taxes (where you pay your mortagage company monthtly, and then they pay your property taxes annually) or are going to pay them directly.
But either way YOU WILL be paying out of pocket for your first wave of taxes, which can come as a VERY rude shock if you think you're escrowing them. Nothing like getting a bill for $6000 dollars in the mail.
Also, there is the tax asjustment. Since your house no doubt gained "value" with its sale, there is an adjustment period from the old value to the new value of the house. Even if you escrow your taxes, this will not be handled by that. And you won't get the bill for several months. They're wonderful at taking their sweet time getting these details to you.
But as with any new home, you want to do this and that to the house, upgrade things (like a new TV), get things you never needed (like a washer and dryer). You can get wrapped all up in the excitement of the new house and end up deep in consumer debt, and then get slammed with a tax bill that you're not anticipating.
So, simply be very cautious and watch your cash flow until you've been through the full tax paying cycle. They don't really detail that (at least for me they didn't) about how the taxes work, etc., and how they affect your cash flow. The normal bills hit in the autumn, and are split in two payments. If you are not prepared for this, you can be badly blindsided and have a "sudden" several thousand dollar cash hit.
After the first cycle, you know what to expect, you know what your rate and expense will be like, and you can budget accordingly. But the first year can be a doozy for the unprepared.
Good luck on your new home!