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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Somethings gotta give, right?
[
A house is not a liability on your balance sheet. A house is an asset and the mortgage is the liability.
houses cost money to maintain- and that's why they taught us it was a liablity
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Posted 7/6/06 5:18 PM  |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: Somethings gotta give, right?
Posted by Colleen9304
Posted by lululu
A house is not a liability on your balance sheet. A house is an asset and the mortgage is the liability.
Thank you.
When people say invest in your future, they talk in terms of security. The stock market is not a guarantee...but a roof over your head, that's nice. House rich, life poor  
a house is not guaranteed to increase either
it more likely then not in NY- but not in other parts of the country
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| Posted 7/6/06 5:19 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: Somethings gotta give, right?
Posted by Beth1210
[
A house is not a liability on your balance sheet. A house is an asset and the mortgage is the liability.
houses cost money to maintain- and that's why they taught us it was a liablity
I am an accountant - A house is the asset and the mortgage and any other expenses are the liability. Anything that the house is worth above and beyond the liabilities is equity.
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| Posted 7/6/06 5:20 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: Somethings gotta give, right?
Posted by Beth1210
Posted by Colleen9304
Posted by lululu
A house is not a liability on your balance sheet. A house is an asset and the mortgage is the liability.
Thank you.
When people say invest in your future, they talk in terms of security. The stock market is not a guarantee...but a roof over your head, that's nice. House rich, life poor
a house is not guaranteed to increase either
it more likely then not in NY- but not in other parts of the country
Historically houses every where will increase in the long term. In the short term, of course there is potential that the value of your home will decrease....
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| Posted 7/6/06 5:21 PM |
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name:
guess
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Re: Somethings gotta give, right?
Posted by Meaghan729
great point. you are investing in your future, but if you are buying a house to live in it is your home first (and of course additional equity, security of not having a landlord that can kick you out) and an investment as well, but a home first.
an apartment in a house - the homeowner either lives there too or owns a primary residence (their home).
If you look at alot of other places in the country - people dont turn their basements into apartments (becuase its cheaper to live so people can afford their house without the additional income) as much as you see here.
and I think that is a cause of housing prices being high here - the lack of alternative housing on long island (apartment buildings/condos/townhomes). look at other places int he country, its more of a mix.
just a thought..
Totally agree...
I also think that LI has/had a lot of families who like to dwell with and near one another (us crazy Italian's! LOL). A lot of the apartments on LI started as apartment's for kid's (and even for parent's)...and when they left, they were then rented out. Not all, mind you, but I would bet it's a huge percentage. I don't think a huge percentage of people add apartments to their home to help with the mortgage...but if it's already there, bonus.
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| Posted 7/6/06 5:22 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Somethings gotta give, right?
Posted by Colleen9304
Posted by lululu
A house is not a liability on your balance sheet. A house is an asset and the mortgage is the liability.
Thank you.
When people say invest in your future, they talk in terms of security. The stock market is not a guarantee...but a roof over your head, that's nice. House rich, life poor
you can make the stock market a guarantee if you diversify enough. Investors can lose $on a particular stock, but will never lose on their entire portfolio. (smart ones anyway!)
US T-bills/notes are considered "risk free" and the 6 mo T Bill is yielding 5.30% right now.
pretty good investment to me!
when our parents/grandparents bought their houses, they weren't thinking, gee, I can retire on my equity I earn on my house (at least mine werent, believe me I asked).
Message edited 7/6/2006 5:22:55 PM.
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| Posted 7/6/06 5:22 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Somethings gotta give, right?
Posted by lululu
I am an accountant - A house is the asset and the mortgage and any other expenses are the liability. Anything that the house is worth above and beyond the liabilities is equity.
thanks for the clarification-
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| Posted 7/6/06 5:23 PM |
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name:
guess
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Re: Somethings gotta give, right?
Posted by lululu
A house is the asset and the mortgage and any other expenses are the liability. Anything that the house is worth above and beyond the liabilities is equity.
Exactly.
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| Posted 7/6/06 5:24 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Somethings gotta give, right?
Posted by lululu
Posted by Beth1210
Posted by Colleen9304
Posted by lululu
A house is not a liability on your balance sheet. A house is an asset and the mortgage is the liability.
Thank you.
When people say invest in your future, they talk in terms of security. The stock market is not a guarantee...but a roof over your head, that's nice. House rich, life poor
a house is not guaranteed to increase either
it more likely then not in NY- but not in other parts of the country
Historically houses every where will increase in the long term. In the short term, of course there is potential that the value of your home will decrease....
so will costs of everything else.
ahhh inflation!
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| Posted 7/6/06 5:24 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Somethings gotta give, right?
when our parents/grandparents bought their houses, they weren't thinking, gee, I can retire on my equity I earn on my house (at least mine werent, believe me I asked).
exactly my point- it's a place to live- it will keep up with inflation and then you can buy a cheaper one and have alittle extra when you retire
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| Posted 7/6/06 5:26 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Somethings gotta give, right?
so will costs of everything else.
ahhh inflation!
it really all evens out- my Dad made alot more in the stock market then he is selling his house up here
he isn't retired b/c his $50K house he bought 30 years ago is worth $600K
he is retired b/c of investments he made back before the last market crash- he didn't buy more houses- he put all his money in the stock market
he just turn 56- how many of us will be able to say were retired at 54 years old
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| Posted 7/6/06 5:28 PM |
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name:
guess
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Re: Somethings gotta give, right?
I don't think anyone is looking to retire on the equity on their house...but to say that it's not an investment, is false. I'm not going to bash those who rent - I did it for 14 years - but renting is not investing in your future the way a home is. Historically, in the long run, housing will go up.
I agree, investing in anything (stock market and yes, housing) long term will yield you $$. Heck, investments in the stock market paid for our bathroom renovation
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| Posted 7/6/06 5:28 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Somethings gotta give, right?
what we are saying is a house is first a place to live- then an investment
not that it's not an investment-
it's when people look at houses for soley investment purposes then things get screwed up
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| Posted 7/6/06 5:31 PM |
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name:
guess
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Re: Somethings gotta give, right?
Posted by Meaghan729
so will costs of everything else.
ahhh inflation!
Inflation will get you every time 
I was speaking with someone today who bought their house for $40k...and could now fetch $700k + for it b/c it's on/by the water. Back then, he thought "$40k, how will I ever pay this off?!?" But it's all relative...he makes a LOT more now than he did back then
edited for spelling 
Message edited 7/6/2006 5:35:15 PM.
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| Posted 7/6/06 5:33 PM |
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name:
guess
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Re: Somethings gotta give, right?
Posted by Beth1210
what we are saying is a house is first a place to live- then an investment
not that it's not an investment-
it's when people look at houses for soley investment purposes then things get screwed up
Well then it's just semantics b/c I'm surely not saying that it is an investment first and foremost... 
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| Posted 7/6/06 5:34 PM |
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verdila
LIF Infant
Member since 7/05 308 total posts
Name:
me
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Re: Somethings gotta give, right?
I was just reading this exchange and while I don't usually chime in, I just wanted to say 2 things:
1) Owning a home is more than just an asset, it is as they say.... "The American Dream"!!
2) I once read that buying a home is the first step to financial success and is always better than renting in terms of finances; however if the monthly mortgage/taxes is more than 36% of your gross income, then you can get into financial trouble.
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| Posted 7/6/06 5:38 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Somethings gotta give, right?
Posted by verdila
I was just reading this exchange and while I don't usually chime in, I just wanted to say 2 things:
1) Owning a home is more than just an asset, it is as they say.... "The American Dream"!!
2) I once read that buying a home is the first step to financial success and is always better than renting in terms of finances; however if the monthly mortgage/taxes is more than 36% of your gross income, then you can get into financial trouble.
well said.
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| Posted 7/6/06 5:40 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: Somethings gotta give, right?
Posted by verdila
I was just reading this exchange and while I don't usually chime in, I just wanted to say 2 things:
1) Owning a home is more than just an asset, it is as they say.... "The American Dream"!!
2) I once read that buying a home is the first step to financial success and is always better than renting in terms of finances; however if the monthly mortgage/taxes is more than 36% of your gross income, then you can get into financial trouble.
I agree on both points.
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| Posted 7/6/06 5:40 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: Somethings gotta give, right?
I just want to say one more thing and then I'm done
every person I know who bought a house 5+ yrs ago say that they could not afford their own house if they bought it in today's market.
that's a sad state of affairs and very telling!
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| Posted 7/6/06 8:17 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Somethings gotta give, right?
Posted by SweetestOfPeas
I just want to say one more thing and then I'm done
every person I know who bought a house 5+ yrs ago say that they could not afford their own house if they bought it in today's market.
that's a sad state of affairs and very telling!
lol - as I was driving home from work today thats exactly what I was thinking!!!
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| Posted 7/6/06 8:41 PM |
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dandg
LIF Zygote
Member since 1/06 46 total posts
Name:
Gerard
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Re: Somethings gotta give, right?
Posted by Beth1210
what we are saying is a house is first a place to live- then an investment
not that it's not an investment-
it's when people look at houses for soley investment purposes then things get screwed up
I think some of us like to hear ourselves talk!
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| Posted 7/6/06 10:34 PM |
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schnapy
LIF Adolescent
Member since 9/05 766 total posts
Name:
Diana
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Re: Somethings gotta give, right?
I dont know, the market is evening out thats a given.... I dont think we will see houses for 200k in the near future. Interest rates are going up but they would have to spike to 13% in the next month in order for houses to drop down to what they were when the market jumped...
Houses are unreasonable, taxes **** and my motto is you want to live on LI you pay taxes. Thats it.. End of story.
Personally I think areas that were once considered undesirable will probably start to come back since houses there are more affordable, I think people will take a chance
Also, I think people arent realistic, its like repeating the same thing over and over. You will not get a brand new home with a nice lot in the market for $300, now or near future in a desirable area on the water. Doesnt exist. I also think people live way above their means..
My dh and I make a very nice living for now, and we could well have afforded a very nice house. But we based our purchase on what we wanted to spend not what brokers or the bank said we could actually borrow which was actually alot higher.
I also think if you are a young couple starting out, you cant compare yourself to friends and family who have already been in the game and maybe are on their second home.. THeir are ways to save money for a down payment, no need to over extend yourself.
This society puts so much emphasis on what you should have and do, if you bought a one room house with a roof and a bath you are doing better than some people. Its yours end of story. Doesnt matter what everyone else has or bought 5 years ago, 20 years ago or 50 years ago
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| Posted 7/7/06 8:56 AM |
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verdila
LIF Infant
Member since 7/05 308 total posts
Name:
me
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Re: Somethings gotta give, right?
I also think people in our generation expect more (myself included).
For example, after we bought our house, we replaced virtually everything in the 40 yr old ktichen - cabinets, countertops, floor, appliances etc. I also bought a brand new dining room set and new furniture for my daughters room within the same yr. Of course, both DH & I work our butts off to finance it all. But, did we really need new cabs in the kitchen or that expensive counter and sink/faucet combo? No, all we really needed was a new stove. But, the rest of the place was 1960s ugly and we just couldnt "live" with it. Did I need a new dining room set - not really...but I really really wanted it and it looks great in there! :)
My parents in retrospect bought their house in 1974 with a 20 yr old kitchen and didn't fully remodel it until the late 90s (my mom lived with old appliances and counters and just got new sinks, and painted/wallpapered a few times over the yrs etc....)
My inlaws said they didn't buy new furniture for their house until they were in their mid to late 30s, lived with alot of hand me downs and they drove used cars for the most part until they got into their 50s.
My point is that I think our generation expects brand new things, vacations, new cars as well as a big house in a nice area and new furniture ALL AT ONCE and it is just not possible for the average family. I think we as a generation feel more entitlement to the good life....myself included of course! I think alot of young people live above their means to feed this consumerist culture.....and then we say it isnt fair that we can't have it all! Looking at my grandparents who came here from Italy with nothing but the clothes on their backs, no education, nothing, they would say that I am pretty lucky and yet some days I still think I am not....
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| Posted 7/7/06 9:24 AM |
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schnapy
LIF Adolescent
Member since 9/05 766 total posts
Name:
Diana
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Re: Somethings gotta give, right?
Posted by verdila
I also think people in our generation expect more (myself included).
For example, after we bought our house, we replaced virtually everything in the 40 yr old ktichen - cabinets, countertops, floor, appliances etc. I also bought a brand new dining room set and new furniture for my daughters room within the same yr. Of course, both DH & I work our butts off to finance it all. But, did we really need new cabs in the kitchen or that expensive counter and sink/faucet combo? No, all we really needed was a new stove. But, the rest of the place was 1960s ugly and we just couldnt "live" with it. Did I need a new dining room set - not really...but I really really wanted it and it looks great in there! :)
My parents in retrospect bought their house in 1974 with a 20 yr old kitchen and didn't fully remodel it until the late 90s (my mom lived with old appliances and counters and just got new sinks, and painted/wallpapered a few times over the yrs etc....)
My inlaws said they didn't buy new furniture for their house until they were in their mid to late 30s, lived with alot of hand me downs and they drove used cars for the most part until they got into their 50s.
My point is that I think our generation expects brand new things, vacations, new cars as well as a big house in a nice area and new furniture ALL AT ONCE and it is just not possible for the average family. I think we as a generation feel more entitlement to the good life....myself included of course! I think alot of young people live above their means to feed this consumerist culture.....and then we say it isnt fair that we can't have it all! Looking at my grandparents who came here from Italy with nothing but the clothes on their backs, no education, nothing, they would say that I am pretty lucky and yet some days I still think I am not....
AGREEEEEEEEEEe, I refuse to finance furniture, so hence we have been in our house for a little over a year and its still not furnished. I buy when we have some extra cash.. We also lived in a cramped one bedroom apt with hand me downs for 3 years and saved as much as we could without touching our own nest eggs.
I just had this argument with my brother he moved in with his girlfriend to a new apt, they went out and bought all brand new expensive furniture, but then him and her were complaing the other day that they will never be able to buy a house.
I said you idiots combined you make over 130k a year if you cant afford to buy something you guys need to learn how to count. You could have had 5000k in the bank by now if you just took the old furniture and didnt buy new.
Of course my brother told me to mind my own business and I said they dont complain in front of me.
But its true....
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| Posted 7/7/06 9:29 AM |
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name:
guess
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Re: Somethings gotta give, right?
Posted by verdila
My point is that I think our generation expects brand new things, vacations, new cars as well as a big house in a nice area and new furniture ALL AT ONCE and it is just not possible for the average family. I think we as a generation feel more entitlement to the good life....myself included of course! I think alot of young people live above their means to feed this consumerist culture.....and then we say it isnt fair that we can't have it all! Looking at my grandparents who came here from Italy with nothing but the clothes on their backs, no education, nothing, they would say that I am pretty lucky and yet some days I still think I am not....
We are definitely the Fast Food Generation.
DH & I are guilty of it too...we just bought a brand new washer & dryer. The washer that came with the house was only 3 years old (we found the receipt)...but it's an agitator and we're snobby
It's sad and I wonder where this sense of entitlement came from. Our generation seems to expect more than they want to give.
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| Posted 7/7/06 9:31 AM |
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