Open Letter to Juiceman, Spunky, Malraux, et al...

dmag..just to make this easier to follow..have you been posting under any other names recently?

if not...that's cool...it;s just that we are getting all mixed up

He didn't address this to you.

As much as you try to avoid the obvious, no one is mixed up.

Why not tickle your memories:

http://streeteasy.com/nyc/talk/discussion/2651-where-are-all-the-idiots-who-made-the-2007-doomsday-predictions

Dmag has been around a long time, always waiting....waiting...waiting...

When rates start going up we will have increases in rents, inflation, and a strengthening economy. I'll take my chances long term paying 4% on a place I love until I own it. If you prefer to rent, great. Doesn't makes sense for me.

You said the same thing when rates were going down, Juicy.

Raising rates might not actually have a direct relationship with the cost of RE. It's an important variable, just not the only one. That being said...rates are going to go up and prices are going to come down. It's like watching the paint dry.
It could be 2012.2013, who knows??? but, the market will come in for a bottoming.
At a point rates become significant and inventory reaches critical mass there is capitulation.
I recently did some research on a TH in Carnigie Hill.
Sale Price
1994=$700.000.
2006=$6.8M
The floor to this market is made of straw

Are you people kidding me? rates going up = stronger economy = higher profits = higher wages = more buying power. More buying power way more than offsets any increased costs associated with higher rates. Anybody take eco 101? geez....

"The higher the interest rate, the bigger the tax deduction, the cheaper it becomes to buy."

- The Gospel According to LICCdope

Higher "real" rates means tight money supply, something we don't have right now. High real rates tend to discourage investment and encourage savings. The Elephant in the room is government debt which will compete with private debt for capital.

The opinion poster who said higher rates equates with stronger economy may not be right. The inverse may be more true that a strong economy equates to higher rates.

"Anybody take eco 101? geez...."

Yes, clearly not you... you should try it, Steve.

"Since you paid some price for your apartment, the mortgage interest deduction doesn't count."

- The World According to Old Man stevejhx

What, dope?

> "Since you paid some price for your apartment, the mortgage interest deduction doesn't count."

Paying more in interest, even if you get a deduction on it, costs you MORE.

It's like someone who wants to earn less money to save on income taxes...

And that is LICCdope's argument!

Old Man steve's argument is that you should never consider the tax deduction when comparing the cost to own and the cost to rent, because the deduction is "already included in the price."

Must be the senility.

Actually, LICCdope, that was your argument: you have clearly stated in multiple threads that were the tax deduction to be eliminated, property prices would fall.

Thus your implication is clear: it's already baked into the price.

I happen to agree with you on that.

old man steve likes making things up that I never said. His contention that you shouldn't consider the tax deduction when comparing costs is another in a long line of his ridiculously dumb statements.

You are analyzing the costs of purchasing. You get a tax deduction for the mortgage interest you pay if you own your home. You therefore have more money in your pocket because of the tax deduction than if the deduction was not available. Yet the old man says you shouldn't consider this because it is "already baked into the price." LOL!!

Hundreds of years of research, and still no cure for Down Syndrome.

you can hit him over and over square in the head with a baseball bat, but LICDope just keeps lumbering forward--youve got to admire his tenacity, if not his witlessness

Despite your present denials, you did in fact say that, LICCdope.

Now you're attempting a to resolve an irresolute dichotomy: on the one hand you claim that the tax deduction doesn't affect the price of property, and on the other you're claiming that because of the tax deduction you can afford a higher price.

If more people can afford a higher price, though, the demand curve shifts and the price continues to rise until equilibrium is reached again. How do you explain that?

PS: "Old Man" doesn't bother me in the least, you'll have to try something better than that. As of this year I get to deposit an extra $5,500 a year into my 401(k). Soon - Medicare. If business were bad I could even go on WIC, buy Ferraro chocolates, but unfortunately business is good.

You can become a woman, infant or child?

AH, you are describing Three Phases of LICCdope. Bose-Einstein Condensate is the fourth: so cold that nothing penetrates it.

He has always seemed like a gaseous condensate, it's true.