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LOL I agree with the others. Can you hook me up with a risk-free 8% investment?
Couple things...first your 8% return isn't really 8% - more like 5.4% when you take out taxes. Next, your 6% mortgage isn't really 6%, more like 4% when you factor in the mortgage interest dedcution.
Now I know a bunch of people buy condos and townhomes and yes that is a good thing because it is equity and not flush-rent-down-the-toilet money every month, but I am not a fan of 'em b/c you are buying into a structure and not a property. Structures deteriorate over time, your land that you own is yours and historically has never depreciated in value.
My property has appreciated at least $60K over the last few years and the funny thing is that after deducting the tax write-off, my monthly out-of-pocket payment is comparable to a one-bedroom apt.
Good luck!
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