Why your house is a terrible investment

[fsquid]

^if you work from home 

guaranteed audit if you take that credit/deduction.

not really, but i get your point. it's simply a risk that you'd rather not deal with.

One of the things that the IRS has been going after the last 5 years is the home office stuff.  I know consultants who work from home 100% of the time and they don't take the deduction simply for that reason.

[Know Growth]

Perhaps it is simply due to winter season,brown & down,extra special vision focus (dang!....look at that!....never saw That before....), a good chunk of Duval County within the Westside Core is looking pretty beat up.
And it's all Close to Better.

Maybe too close for comfort.

[ProjectMaximus]

One of the things that the IRS has been going after the last 5 years is the home office stuff.  I know consultants who work from home 100% of the time and they don't take the deduction simply for that reason.

Cool. I definitely believe you, but it's just not a guaranteed audit...must depend on the industry but i can tell you dozens of of my friends/colleagues from school do this (we were taught to in our music business classes after all), and they're not getting audited. Probably not enough income for the IRS to worry haha!!

Btw, I'm referring to music teachers and performers with home studios.

[mtraininjax]

My wife and I lived at the beach for 2 years and here in Avondale for the past 14, we did not buy either place as an investment or even a home, we lived there for the neighborhood. As has been chronicled here the beach from 98-2000 was interesting with the Crab Pot still around and few of the high rises that are there now, but we jumped at the opportunity to be a part of a great neighborhood, which are are a part of and are enjoying the new King Street district, the changes over the years to Avondale and we are hopeful for Murray Hill.

We could rent or own, it does not matter to us, but we live where we live because of the neighborhood. In the end, you really have to love WHERE you live to provide a quality of life.

[ProjectMaximus]

We could rent or own, it does not matter to us, but we live where we live because of the neighborhood. In the end, you really have to love WHERE you live to provide a quality of life.

I like that! 

[cayohueso]

Try having a house in short sale because of a divorce. Then having a paltry second mortgage not sign off on the deal a YEAR AND A HALF later. Then have the whole thing foreclosed on by the first mortgage. Lifetime loser huh?

Wish I was a perfect person like some others on here...

[Lunican]

Every type of property can be bought or rented so this isn't really a discussion about everyone's living preference.

Here is an average 1,500sq ft 3 bed 2 bath house on the Southside renting for $1,375 and would sell for $180k.

http://www.zillow.com/homedetails/12228-Cobblefield-Cir-S-Jacksonville-FL-32224/44608128_zpid/

With the transactions costs (of buying and selling), insurance, taxes, maintenance, and low appreciation you'd have to live in this house a very long time before buying it is cheaper than renting it.

[Tacachale]

Yes, because we've already established there's no possible other reason for buying a home than making an "investment".

[pears045]

Lunican - that is incorrect. Transaction fees are going to cost you about 3K... how long do you think you need to be there to make it better than renting?  I know the answer so I am curious if you do....Do you know what the payment would be on 180k today compared to renting?  I think you will be surprised. 

[Gators312]

Monthly expenses may be cheaper, but upon exit of the property an owner will recoup (in most cases) some or all of their expenditures at the time of sale.

A renter will recoup nothing. 

[John P]

Every type of property can be bought or rented so this isn't really a discussion about everyone's living preference.

Here is an average 1,500sq ft 3 bed 2 bath house on the Southside renting for $1,375 and would sell for $180k.

http://www.zillow.com/homedetails/12228-Cobblefield-Cir-S-Jacksonville-FL-32224/44608128_zpid/

Please dont link that grotesque architecture and neighborhood planning that is Kernan blvd again. I have to wash my eyes out now!

[Lunican]

Lunican - that is incorrect. Transaction fees are going to cost you about 3K... how long do you think you need to be there to make it better than renting?  I know the answer so I am curious if you do....Do you know what the payment would be on 180k today compared to renting?  I think you will be surprised. 

It depends on whether housing prices go up or down. Also, transaction costs are higher than $3k if you list with a real estate agent. 

http://www.nytimes.com/interactive/business/buy-rent-calculator.html

[Lunican]

Every type of property can be bought or rented so this isn't really a discussion about everyone's living preference.

Here is an average 1,500sq ft 3 bed 2 bath house on the Southside renting for $1,375 and would sell for $180k.

http://www.zillow.com/homedetails/12228-Cobblefield-Cir-S-Jacksonville-FL-32224/44608128_zpid/

Please dont link that grotesque architecture and neighborhood planning that is Kernan blvd again. I have to wash my eyes out now!

Haha yeah, I wouldn't live there but unfortunately it is representative of a typical Jacksonville home.

[BridgeTroll]

Pretty typical of new construction homes alllllllll across suburban america.  It is understandable that this is not very popular on this website... but millions of people do just fine there... 

[tufsu1]

RealtyTrac (self-serving perhaps) says owning is still better than renting

http://www.miamiherald.com/2014/02/20/3946146/buying-a-home-in-south-florida.html