Re: A strategy for affordability | <– Date –> <– Thread –> |
From: Joanie Connors (jvcphdgmail.com) | |
Date: Mon, 17 May 2010 12:52:17 -0700 (PDT) |
You can't buy a travel trailer, or any kind of trailer for $3,000, unless it is over 20 years old, more like 40. On Mon, May 17, 2010 at 1:40 PM, Brian Bartholomew <bb [at] stat.ufl.edu> wrote: > >> In our economic system their house is perhaps the only potentially >> productive asset available to many if not most people of modest means. > > Productive? Let's do some figuring. $150,000 mortgaged at 6.5% for > 30 years is a monthly payment of $948. The total mortgage payment is > $341,280. Here are some maintenance costs: painting exterior $2,000 > times 3; replumbing $4,000; new roof $6,000; new appliances $10,000; > real estate taxes $1,500/year; miscellaneous $50/month; total > maintenance payment is $89,000. The total payments are now up to > $430,280. You bought a new house worth $150,000. Now it is 30 years > older, and you would have to sell it for $430,280 just to break even; > but perhaps you can sell it for half of the original price, $75,000. > > Suppose instead they paid $3,000 up front to buy a travel trailer to > live in, and replaced the trailer every ten years. Then they paid > $948 each month for 30 years to buy more of an investment, like a > bond, that earns 6.5% each year. After 30 years their investment > would be worth about 1 million dollars. > > This calculation was quick and dirty. I used financial calculators on > the web, I'm ignoring details such as the down payment, currency > inflation, taxes, and that the repairs do not have to be financed for > the whole 30 years. You'll also note the complete lack of predatory > lending practices in this example; a house you live in is not an > investment or savings vehicle even if the bank is reasonable. > > ----- > >> With regard to Brian's thoughts, when I last looked, the costs of >> construction in many parts of the country were beyond the means of >> low income families--particularly if the cost of land and utilities >> are included. > > Not true. The costs of building construction are small; it is the > costs of permitting an inexpensive structure which are prohibitive. > > Brian > _________________________________________________________________ > Cohousing-L mailing list -- Unsubscribe, archives and other info at: > http://www.cohousing.org/cohousing-L/ > > >
- Re: A strategy for affordability, (continued)
- Re: A strategy for affordability David L. Mandel, May 16 2010
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Re: A strategy for affordability Fred H Olson, May 16 2010
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Re: A strategy for affordability Richart Keller, May 16 2010
- Re: A strategy for affordability Brian Bartholomew, May 17 2010
- Re: A strategy for affordability Joanie Connors, May 17 2010
- Re: A strategy for affordability Brian Bartholomew, May 17 2010
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Re: A strategy for affordability Richart Keller, May 16 2010
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Re: A strategy for affordability David L. Mandel, May 16 2010
- Re: A strategy for affordability bb, May 16 2010
- Re: A strategy for affordability Marganne Meyer, May 17 2010
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