I don't know what state Soren lives in but in NJ where I live $220k barely buys you a condo in a crappy area and it is not uncommon to see townhouses go for $500k+. As for the $2900 in property taxes...that's also about 20 years ago. My cable bill is almost that much per year.
I would like to see this chart shown with $450k ave. base price & $8k annual taxes vs. $1400/mo. for the average single bedroom apartment.
Well anonymous, you can change all the values in the top row, and hit calculate.
I live in Denmark, so the chart is not directly relevant to me. I bought my house in january 2003 for DKR 1,335,000 (appx. USD 200,000). The price has since gone up by 75-100%, so we probably have our very own bubble over here. Lending is more tightly regulated here, so I don't think we are going to see all that many fraudulent loans and overvaluations turning up. That doen't mean that all the people with interest only loans won't be hurt if interest rates go up.
Any one who already own a house should consider the effect on their mental health before trying out negative amortisation rates.
Oh, and by the way, its Søren, not Soren. The second letter is supposed to have a slash through it. The three extra letters in danish, which doesn't exists in english causes endless amount of fun when using US designed web sites / IT systems. The danish shipping line Mærsk changed there name to Maersk because a lot of port computers couldn't handle the old name.
Wow, news I can use! I've been debating the merits of buying a condo over continued renting and this ought to be a pretty useful tool to that end.
ReplyDeleteI don't know what state Soren lives in but in NJ where I live $220k barely buys you a condo in a crappy area and it is not uncommon to see townhouses go for $500k+. As for the $2900 in property taxes...that's also about 20 years ago. My cable bill is almost that much per year.
ReplyDeleteI would like to see this chart shown with $450k ave. base price & $8k annual taxes vs. $1400/mo. for the average single bedroom apartment.
I like that one - mostly because i'm in the market for a house, and you change stuff which is cool... i like changing stuff...
ReplyDeleteWell anonymous, you can change all the values in the top row, and hit calculate.
ReplyDeleteI live in Denmark, so the chart is not directly relevant to me. I bought my house in january 2003 for DKR 1,335,000 (appx. USD 200,000). The price has since gone up by 75-100%, so we probably have our very own bubble over here. Lending is more tightly regulated here, so I don't think we are going to see all that many fraudulent loans and overvaluations turning up. That doen't mean that all the people with interest only loans won't be hurt if interest rates go up.
Any one who already own a house should consider the effect on their mental health before trying out negative amortisation rates.
Oh, and by the way, its Søren, not Soren. The second letter is supposed to have a slash through it. The three extra letters in danish, which doesn't exists in english causes endless amount of fun when using US designed web sites / IT systems. The danish shipping line Mærsk changed there name to Maersk because a lot of port computers couldn't handle the old name.