Plenty of houses available!

I know I'm not gonna have one for this football season, but I will have one for next season. Mini fridge will have to do for now.

 

Actually, that’s not true. First, the $8k is a tax rebate you are given when you file your taxes. This isn’t money off the top. The purchase price is still $200k. The 10% down payment you want to make is still $20k.

Despite the market, my wife and I just purchased a home and will be closing soon. It’s a nice place that we found for a great price due to the expiration of that $8k rebate. The price of homes have dropped due to this.

The reality is that these numbers are simple economics. Without the rebate, the price drops. Houses that would sell for less are selling for more because people are being given free money.

 

Pastor, was your contract signed before April 30th and you still haven't closed?

 

No. We don't qualify for the $8k rebate. The contract was signed towards the end of July.

 

If you're intentionally having more withheld than you need to, you're loaning the government money at 0% interest. Even with horribly low savings account interest rates, you'd be better off taking the money up front and stashing it away. Put it in an account where you can't get at it until April 15 if you have to have that big payoff.

(Note: I have never followed this advice myself, so it's a bit hypocritical to say it here.)

 

I've heard that as well, but the witholding is just something my parents got me into the practice of when I was 14 and had my first job. Just sort of always done it that way.

 

Do the math on this one:

You loan the government the $8,000 for 3/4 of a year. You could have put the money in a savings account.

My credit union is offering its best rate at 0.75% Assume a tax rate of 25%.

You are missing out on
$8,000
*0.75% interest rate
*9/12 months of the year
*75% (effective at a theoretical 25% tax rate)

Its $33.75, or a night out at Chili's for you and your wife, *maybe* with a beer.

 

What's with the love for freakin' Chilis? I hate those teeny beer mugs they serve drinks in.

 

Not talking about the tax credit. Rather the idea of having the government withhold more than needed to get a windfall at the end of the year.

Not to mention if you get the money spread out per paycheck, you're much less likely to get that refund check and go buy a flat-screen or something.

 

Flat screen?! My next TV purchase will be 3D.

 

I did the same thing. I put a third bathroom in, not because I wanted to invest, but because I was sick of going up a flight of stairs to the main floor to take a piss at halftime.

Now, I have a bathroom in my basement. Could I afford to put it in? Yes. Does it add value? Sure. Will I see that added monetary value? Only if I sell. Which, like I said, I'm not going to - save an extreme circumstance.

I don't plan on borrowing against my home to fund a trip to Europe, which I know people do. Which is another reason they add to their home, to give them more leverage when borrowing.

 

Hell of an expense -- especially if you're not worried about making money off it -- just to avoid walking up 5 or 6 stairs to take a piss.

I admire your laziness. I only aspire to be that lazy.