Want to buy Bluebird

[Jon]

--- In WanderlodgeForum@yahoogroups.com, "Jon" wrote:
>
> --- 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

On that cash items I was talking about I do use my credit card but
pay it oft at the end of the month. One big advantage to using the
credit card is that I have saved up enough points to take two round
trip flight anywhere in the USA for FREE this year. Jon
Rebel Bird
1978 Special

>