Renting vs. Owning--a quick commentary

I was reviewing a contract for a gentleman purchasing an in-town townhome in the $300's; his mortgage was going to be about $1700 with Dekalb taxes and it seemed like a killer deal. While he will probably pay some monthly HOA dues, I know that there are older homes in our area (Brookhaven) that can be purchased in this price point that would NOT require HOA dues. What is the point of this commentary? He moved out of an upscale apartment complex because his monthly rent on a 2 Bedroom/2 Bath apartment with less than 1300 square feet was going to be $1625 per month! OUCH!

I am just using this example to give you pause to think about why you're renting (if you are...). If you pay rent, it goes to the landlord. If you pay your own mortgage, your asset is (hopefully!) appreciating and your balance is dropping. If you do your homework, you can find something much larger than 1300 square feet for a lower monthly cost. Yes, you may have more to upkeep but the tax benefits alone may make it worth it! Regardless, I continue to be blown away by renters who pay such high amounts when financing is so inexpensive!

With that being said, move quickly! Rates are still low; inventory is still tight. BUT rates WILL go up and there will always be houses out there--you just have to dig!

Golf and taxes

I am not a golfer. In fact, my standard joke is that I am a failure as a lawyer because I don't play golf. I have played about 4 times; with about a 90 for 9 holes for each 'outing'. Again, I obviously don't play golf. I am also not an Econ major but I love to dabble, as evidenced by this blog. I have to share an amazing article with you about what 'real' taxes cost. Please click HERE to read an article about Phil Mickelson's complaints about taxes. Pretty interesting read and shows how horrible our taxes really are. (then again, if you want to 'share the love' and steal from the 'evil rich' then this article will make you giddy--not me!).
Cheers, Bo

The US Budget defined

I got this from an email (so of course it's true :) SO even if the facts aren't fully correct, this is a pretty good depiction of why we're in such a mess. Have fun! (Sorry about the layout; don't know why Blogger won't let me format how I want it). Why the U.S. was downgraded: * U.S. Tax revenue: $2,170,000,000,000 * Fed budget: $3,820,000,000,000 * New debt: $ 1,650,000,000,000 * National debt: $14,271,000,000,000 * Recent budget cuts: $ 38,500,000,000 Let's now remove 8 zeros and pretend it's a household budget: * Annual family income: $21,700 * Money the family spent: $38,200 * New debt on the credit card: $16,500 * Outstanding balance on the credit card: $142,710 * Total budget cuts: $385 Got It ?

Georgia Economic 'Snapshots'

When I first read the headline noting ATL is the #31 destination for movers according to U-Haul I was thinking 'cool, this is good for us!'. Unfortunately, when I read the article we were #1 in 2008 and #6 in 2009. People, Georgia is lagging! It's not just the data from 1.4M rentals by U-Haul--it's our water issues, our schools and our transportation problems. MARTA rail? Forget it... for a city our size we have the fewest miles of rail (compare us to Washington DC). We need to have a regional entity to make ATL competitive on that front. Many other topics but that's just one bugging me right now. The top 5 cities per U-Haul? 1-Houston (Houston?); 2-Orlando; 3-Vegas; 4-Chicago; 5-Portland. Oh what the heck-- 6-San Antonio; 7-Austin; 8-Brooklyn; 9-Sacramento and 10-Kansas City, MO (huh?).

We're also #8 for "financial distress". We scored 61.3 on CredAbility's Financial Distress Index--a score below 70 indicates a state of financial distress. A score of 60 or less is considered an emergency crisis. We are unfortunately in "good company". The top-10 in order are: Michigan, Mississippi, Nevada, Alabama, Florida, South Carolina, Indiana, Georgia, North Carolina and California. The 'punchline' in this story is that these 10 states produce over 33% of the country's GDP (no, it's not really a punchline, more like a punch in the gut). In essence, economic indicators are looking up; it's just that individual bottom lines have not fully recovered. Give it time; hang on fellow Georgians! Who knows--maybe we'll be able to vote on Sunday sales sometime soon; wouldn't that be a novel concept!

Tell us how you really feel, Bernie Marcus!

The title of this interview says it all: Democrats are anti-business. Political pundit? Rant by some conservative talking head? Nope; Bernie Marcus! This article gave me a link to his interview--he doesn't hold back! Here's a link to the interview as well. It's a long one though... Cheers!

Newt Gingrich's message for Labor Day

Read this article! There was not a lot of press about Congressman Boehner's call to fire President Obama's Economic team, but this article makes it clear that it's time for some real CHANGE in D.C.!

(Full text of Boehner's speech here)

Clark Howard on Health Care reform...

I respect Clark Howard's opinion on several things and disagree on a few as well. In this article, he spells out some details of health-care reform. I see that the 'average taxpayer' will be hit with $450 in fees to cover this plan. I don't think that this figure covers all the costs, but so be it... I guess we'll see what happens down the road, eh? I for one am scared of any governmental control. I expect them to start dictating (rationing?) tests. Remember the mammogram issue last year? Just wait... that's the tip of the iceberg!

Watch this demonstration of the rise in unemployment rates in the US!

This presentation is scary! Looks like an outbreak of the plague... The question for Washington DC is "can it be stopped?"

Uh-oh... The Economy stumbles a bit...

Unemployment claims rose last week and inflation jumped more than forecast in January. Yes, there are still positive news items (manufacturing is up, cars are selling, new home permits up slightly and pricing stabilizing) but the core issue currently is the job situation (a reminder to those 'in charge'--it has ALWAYS been about jobs--NOT our health care). Why is this important? If inflation keeps rising, how does the Fed combat that? They raise interest rates! What will KILL home sales? Rising interest rates! (right Mr. Carter?) What else? Well, the Fed has been more or less buying loans (in simplistic terms). At the end of March, this will end, so we can see rates hike up based on the fact that it will be more difficult to obtain funds. This can also hurt home sales and refinances. I will expand on this soon, but suffice it to say that we are nearing a 'perfect storm' environment for home sales: the tax credit will expire soon (must be under contract by the end of March); the Fed will need to raise interest rates to combat inflation (prediction-by Summer); the Fed will stop shoring up the mortgage market at the end of March. bottom line-if you are on the fence, BUY OR REFI NOW!

As for health care, READ THIS from the AJC--I wish our politicians would....

Why the IRS should go away!

I have always noted that I am a fan of the "Fair Tax" as it levels the playing field for ALL Americans--Bill gates would pay the same tax rate on a Ferrari as I would pay for a gallon of milk, not to mention people who hide their income and don't pay their 'fair share' (to coin a Liberal catch-phrase). Spare me the details about the working poor being penalized as you probably haven't read the bill (someone correct me, was it HB 5 or 25 or something??) and don't understand the REBATE they would receive... But I digress. If you are a FAN of the IRS (or even if you aren't), please read this article of the IRS and how they managed to pour salt in the wounds (acid?) of a hard-working American. God Bless this family and I pray that their ordeal is over. Are YOU next?