#1 Consumer Comment
AUTHOR: Karl - Highlands Ranch (U.S.A.)
SUBMITTED: Thursday, May 07, 2009
POSTED: Thursday, May 07, 2009
HOUSE IS NOT AN INVESTMENT!
He said this to a class of executives back in late 2004. My CEO brother in-law was in that Harvard class! He told me things that most people would not believe!!! Some of it is posted in the Updates section at a Ripoff Report from the summer of 2007. You can 'Google' this- RIP OFF REPORT FUEL FREEDOM INTERNATIONAL MPG CAPS, and read the 'Update' entitled- 'Blame it on a Lawyer'.
It came true, didn't it?
The Harvard Business Professor is right!! A house is simply a place to live. But Americans have been 'tricked' into believing that a house is an investment, and tricked into believeing that it's the 'American dream'.
Simply do the math!
EXAMPLE: If you buy a house for $290,000 and put $30,000 down, and mortgage $260,000 over 30 years, at a fixed rate of 5.7%, your payment is $1,509 per month.
Let's round the $1,509 down to $1,500 and multiply it by 360 months. We get a total of $540,000. That DOES NOT include property taxes! If property taxes are $2,500 per year, then we must add $75,000 to the $540,000 and we get $615,000.
Now we add the original $30,000 down payment to the $615,000, and we get a total of $645,000, right? Guess what? That DOES NOT include any UPKEEP or MAINTENANCE on the house over the 30 years!!!
Let's assume that there was no upkeep or maintenance over the 30 years, okay? If the owner decides to SELL the house, he or she will eventually get the 'MARKET PRICE' for it, correct?
GUESS WHAT? In order for that person to purchase another house, similar to the one he or she just sold, in a similar neighborhood, he or she would pay a SIMILAR PRICE!!! This is WHY a house IS NOT, and will NEVER BE an investment! It's simply a place to live!
Americans have been 'TRICKED' into believing another LIE, which is the foundation of America.
Guess who's making all the money? Answer: The BANKS, & the BANKERS!!!
America was founded on a lie, and we continue living that lie ever since 1492, when a boat landed in America and all the BIG problems started to occur! REMEMBER, the REAL Americans were here long before our ancestors came over and STOLE it away from them!!!!
WELCOME TO THE BIGGEST LIE ON EARTH- AMERICA!
Karma has simply taken over.
'karma' (definition) - Something done; action, work, behavior; also the CONSEQUENCES of action spiritually & mentally, as well as physically.
I'm Karl, and I approve this Update!
GO HARVARD!
#2 Consumer Comment
AUTHOR: Flynrider - Phoeix (U.S.A.)
SUBMITTED: Thursday, May 07, 2009
POSTED: Thursday, May 07, 2009
If you're being taxed on the value that your home had in 2000 (330K), then you're being ripped off by the taxing agency. I'd check with whomever collects the taxes (city county or state) and find out why they haven't updated the value.
Second, I'm not sure what you're complaining about. You say the house was valued at 288K two years ago and you think the current 211K value is too low? That's about a 26% drop. I would say if it only dropped 26% over the last two years, you are lucky. Appraisers are getting comparable home valuations from records of recent sales. Since your home is now competing with dirt cheap forclosure properties, it's going to be worth way less on the market, no matter where you live. I don't know where you're getting the idea that the values are from when the homes were originally built. That would be absurd.
The days of using your home as an ATM machine (i.e. regularly sucking out the equity to pay bills) are long gone. That only works when property keeps appreciating. Given the price crash of the past few years most people that bought or refinanced in the last 5 yrs. are currently under water. There's nothing special about your situation.
#3 Consumer Comment
AUTHOR: Stacey - Dallas (U.S.A.)
SUBMITTED: Thursday, May 07, 2009
POSTED: Friday, May 08, 2009
Karl
Tell me what State your CPA license is in or what State your practice Tax Law in -
Home APPRECIATE in value unlike vehicles which DEPRECIATE the second you drive them off the lot
My home has appreciated in value in the last ten years due to a good area, stability of the homes built in a certain year and individuals wanting to move into the area because of low crime, property taxes, family friendly dwellings etc etc
And since you think so highly of individuals educated at Harvard here is a little story for you
My Father (A LICENSED CPA) had two clients - both Harvard educated and living here in the DFW area in Highland Park - The Harvard educated Husband slowly poisoned the Harvard educated Wife and she died - He is currently serving a prison sentence
Wanna check it out on DVD?? Called Death in Small Doses
AND another thing - since you think America is so horrible I have a great suggestion
MOVE!!!!!!!!!
#4 Consumer Comment
AUTHOR: Jim - Anaheim (U.S.A.)
SUBMITTED: Friday, May 08, 2009
POSTED: Friday, May 08, 2009
There are a few main components to your complaint - which are:
1. The valuation of your home decreasing and loss of equity
2. The taxes you're paying on that home
3. The appraisals on your home
None of these complaints have to do with the mortgage company, Countrywide, or Bank of America. As has already been pointed out, your home value has dropped as a result of the bubble bursting in the real estate market. In other words, the valuation of your home at $330K was probably very overstated. That is not the fault of the lender, the mortgage company, or the bank - is it? The taxes you pay have nothing to do with the mortgage company or the bank - that is something you have to take up with the taxing authority in Georgia. I can tell you from personal experience they are not the brightest bulbs in the lot and you're going to have to go down there and take your two appraisals with you.
Finally, the appraisers don't work for the bank either, or the mortgage company. If the appraisers have placed the value of the home at $211K, you can bring on another appraiser, who will probably also value your home at about that same amount - maybe more or even less depending on the number of foreclosures in your neighborhood. My guess though is that your still going to be upside-down even after that appraisal. Again, you don't explain how that's the fault of any mortgage company or bank?
You're blaming institutions for something that was more your own doing, but then that happens when you start looking at an investment like your home as your own personal piggy bank anytime you need money. And you will likely have to pay the mortgage insurance; you generally have to pay it when your equity drops below 20% of the appraised value of the home and that's different from the insurance you procured from a broker. Mortgage insurance is for the loan you take and you have to pay for it.
Even though your upside down, chances are your value in the home will rebound somewhat - at least to a point where you won't be upside down. It won't likely return to $330K soon, but you have a nice home and there's no need to refi just because the rates are the lowest we'll ever see.
#5 Consumer Comment
AUTHOR: Karl - Highlands Ranch (U.S.A.)
SUBMITTED: Friday, May 08, 2009
POSTED: Friday, May 08, 2009
MULTIPLY THEIR MONTHLY PAYMENT BY 360 MONTHS, and see what the total is.
Then compare that value with what you paid for your house. If the selling price was $290,000.00 for your house, and you put $30,000.00 down, and mortgaged $260,000.00 at a fixed rate of 5.7% over 30 years, your total would be this-
$1,509 x 360 = $543,240.00
If your PROPERTY TAXES are $2,500 per year, you must now add $75,000.00 to that figure because $2,500.00 x 30 years = $75,000.00
So, $543,240.00 + $75,000.00 = $618,240.00
That does NOT include any 'upkeep' or 'maintenance' on the house over the 30 years! So you really paid $618,240.00 + your $30,000.00 down payment for a $290,000.00 house, correct? That's $648,240.00 for a $290,000.00 house, isn't it?
QUESTION: Did you pay MORE money in interest & property taxes on the house than the original selling price of the house?
ANSWER: YES!!! Because $290,000.00 + $290,000.00 = $580,000.00
And now that the house is paid for after 30 years, you still have to pay PROPERTY TAXES forever, right?
There's nothing wrong with wanting, & owning a house. The problem is when Americans are MANIPULATED into believing that a house is the- 'American dream'. It isn't!!! It's simply a place to live!
Buying a house that is AFFORDABLE is the way to go!
But your 'leaders' want you to be BURIED in debt, because your DEBT is what allows them to exist, & thrive as they do!
GO HARVARD!
#6 Consumer Comment
AUTHOR: Karl - Highlands Ranch (U.S.A.)
SUBMITTED: Sunday, May 10, 2009
POSTED: Sunday, May 10, 2009
The SELLING PRICE of a house ISN'T what you actually pay for the house, unless you paid CASH for it, correct? How many Americans pay CASH for their house?
What you actually pay for the house is the TOTAL OF PAYMENTS over the amount of years you have a mortgage for that house, right?
The INTEREST & TAXES you pay on the house will most likely be MORE than what the original selling price of the house was, correct? Simply do the math for your current mortgage! Multiply the amount of months times your payment, and make sure to include PROPERTY TAXES too.
REMEMBER, no matter what the house sells for after it is paid off, you still need a place to live, right? In order to PURCHASE a SIMILAR house in a neighborhood SIMILAR to the one you lived in, you WILL pay a SIMILAR PRICE!
This is WHY a house is NOT really an investment!
Americans have simply been 'TRICKED' into believing it is.
Believe whatever you want. I believe that the Harvard Business Professor knows what he's talking about, wouldn't you NOW agree?
POWER TO THE PEOPLE!
#7 Consumer Comment
AUTHOR: Karl - Highlands Ranch (U.S.A.)
SUBMITTED: Sunday, May 10, 2009
POSTED: Sunday, May 10, 2009
Economy is the basis of society. When the economy is stable, society develops. The ideal economy combines the spiritual and the material, and the best commodities to trade in are sincerity and love.
- Morihei Ueshiba
Manifest yang
In your right hand,
Balance it with
The yin of your left,
And guide your partner.
- Morihei Ueshiba
Opponents confront us continually, but actually there is no opponent there. Enter deeply into an attack and neutralize it as you draw that misdirected force into your own sphere.
- Morihei Ueshiba
Namaste.
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