 Quote:
Originally Posted by TickTock
Money magazine, January 2008, pages 60 - 61, "Retirement Plan Interrupted":
Single person, age 21, makes $77,000 a year as a school psychologist (southern California), purchases a $600,000 duplex.
For 3% down.
With a 40 year fixed 5.1% loan.
With the first 10 years being interest only.
she's a freakin' genius
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That's one sweet mortgage. I'd buy all day long if I was genius enough to get that kind of financing! So in ten years she should have slightly less than $1,000,000 equity(10% appreciation) and rents will be up over $6,000 a year (4%) and if she'd waited 10 years to buy she'd be shelling out and extra $9,000 each and every year to property taxes(thank you Prop 13)!
Yeah, she's a genius now to get that great of a financing deal. In ten years she'll just be rich. In twenty years she'll be freaking annoying at cocktail parties talking about how she has 20 years left on her 5.1% fixed mortgage when 9,10,11% has been market for the last ten years.
That loan has to be a school deal?!
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