Want to buy Bluebird

[Jon]

--- In WanderlodgeForum@yahoogroups.com, "Gregory OConnor"
wrote:
>
> If you want it , buy it. If you cant afford it, borrow it.
>
> I understood 'Good reasons to finance stories' were justifications
> for making a financed purchase. A reflective look at my position
> reveal that my "financing is for idiodt theories" ARE healing
> justifications wence turned down for a loan.
>
>
>
> GregoryO'Connor
> 94ptRomolandCa
> "Motorhomes with slides are for idiots"
>
>
> --- In WanderlodgeForum@yahoogroups.com, "Ryan Wright"
> wrote:
> >
> > On Nov 23, 2007 1:35 PM, martingregg598 wrote:
> > >
> > > Financing may be the way to go. Let's say that you are going to
> buy a
> > > $100,000 plus BB. If you get a 20 year note at 6% interest for
> 100g,
> > > the unit qualifies as a second home and you can deduct the
> interest,
> > > and you leave your 100g properly invested returning an average
> of say
> > > 10 %, you are making a 4%- plus gain every year on your 100g
> > > (depending on your specific tax situation).
> >
> > Sort of, not exactly. You need to take money out of that $100g
every
> > month to make the payments on the coach, so you're going to slowly
> > dwindle it down, reducing your return. Unless you make the
payments
> > out of your income, in which case I don't think you'll be all that
> > well off. Follow me here:
> >
> > In your example the payment would be $716.43 per month. If you
take
> > that same money and invest it at 10% over 20 years instead of
paying
> > it to the bank, compounded monthly you'd have almost $550k.
> >
> > On the other hand, if you leave your $100k in the bank for 20
years
> > and don't pay any extra into it because you're making payments on
> the
> > coach, at the end of the 20 years you'd have about $730k.
> >
> > Now 730 - 550 = $180k. Interestingly enough, at the end of the 20
> > years you'll have sent about $172k to the bank to pay for your
$100k
> > coach. Which leaves you only $8,000 ahead by financing it and
> keeping
> > your money in the bank.
> >
> > Let's look at the risk you get for your $8,000: You risk an income
> > crisis and not having the ability to repay your loan. If the
market
> > happens to be down about the same time, which is often the case in
> > financial hardships (Murphy's Law), you risk losing your
portfolio
> as
> > you yank everything out in a down market to get the creditors off
> your
> > back. You risk huge spikes in interest rates and fees should you
> miss
> > a payment by accident.
> >
> > Is it worth it? Not to me. Assuming you have the discipline to
> > re-invest the money you would have otherwise sent to the bank, I'm
> > paying cash for the coach and rebuilding my portfolio out of my
> > income.
> >
> > Now, if you're actually able to itemize the interest out on your
> > taxes, you might -- MIGHT -- be able to recover enough to make it
> > worth the effort. Typically, though, that isn't the case. The
> standard
> > deduction will typically be higher than the interest on the coach
so
> > unless you have other major things to itemize, you're no money
ahead
> > with the tax man.
> >
> > In my experience, financing for the interest or tax savings is
> usually
> > a negative to zero sum game, or otherwise close enough as to make
it
> > not worth the risk and/or the hassle.
> >
> > -Ryan
> >
>
I guess I'm from the old school of financing and that is pay for it
with cash!!! I really believe that is what is wrong with America
economy today and that is everything is on time payments. What
happen to the days that when you bought something and you paid for it
or you did not get it? Oh well if a person wants to pay 10 percent
interest on anything than go for it but for me its cash only and save
paying the interest. Product of the depression with a depression
attitude! Jon

Jon
Rebel Bird