More out of whack Buy/Rent math

math may not work, probably doesn't, but you're doing the math wrong again.

What's the right math?

Do show, please.

Let's assume the sale and rental listings are the same apartment. Clearly, the guy didn't buy the place with the intention of renting at a loss. If he can't get a decent resale price, he's willing to park it as a rental, absorb some negative cash flow, and hold until the market perks up.

If he sells at a loss, there's blood in the water. Until then, renting is just a tactical retreat.

But West81st, what about the tax benefit? Not only of the mortgage interest, but the LOSS as well?!

Surely it's a good idea to incur a loss simply to write it off your taxes, no?

Steve: I agree - that would be a specious argument, if anyone ever made it... but I'm not sure anyone has.

of course no one has West 81, steve just makes up absurd positions all the time, implies that others are taking those positions and then acts as if he is the great bringer of wisdom.

and steve, as for your question, you know what the right math is, its been discussed time and time again, and you know simply comparing rent to mortgage/cc's/taxes is not it.

frontporch made that argument on another thread. I countered with the fact that if you lose your wallet you can deduct the cash lost off your income tax, so why not just throw the money away to gain the benefit.

Yawn steve. Stop being over dramatic. People sell investments at a loss all the time for tax and cash flow purposes. You don't buy an investment for that purpose, but not all investments pan out. Offsetting capital gains with a loss is completely logical…..stop with the over blown crap-o-la.

steve, please link to the thread where front porch argued that "it's a good idea to incur a loss simply to write it off your taxes"

http://www.streeteasy.com/nyc/talk/discussion/3909-15-offers-in-6-days-thoughts

front_porch:

I believe it.

1) there isn't a lot of condo inventory in SoHo (one of the markets where I work)

2) the second home market is holding up better than the primary home market is;

3) that "loss" that you are setting yourself up for can come off your taxes to a certain extent.

ali r.
{downtown broker}

"you know simply comparing rent to mortgage/cc's/taxes is not it."

You're right, it's not. Comparing annual rent to purchase price, however, is.

"Stop being over dramatic."

Not "over dramatic." Reductio ad absurdam.

thank you so much steve, the more you post the more people will see whats got to be obvious to so many by now, that you are a fraud, a liar.

as I suspected, FP simply pointed out that such loss could be written off on your taxes, she obviously did not argue that one should incur the loss simply to get the tax benefit (as you stated above). You were the one who said she said that in your next post.

caught out again.

read the whole thread, ccdevi - discussing the pros and cons of a real-estate transaction, frontporch said that one of the pros was that "that "loss" that you are setting yourself up for can come off your taxes to a certain extent."

I read the thread (and her one post in it which simply was a list of 2 reasons why she could see that there might have been so many offers on the place and also pointed out that in the event you did take a loss it would be deductible) and she certainly did not argue that "it's a good idea to incur a loss simply to write it off your taxes"

its that simple

just admit that you were either mistaken (hah!) or out an out made it up in the hopes that nobody would notice, its the first step towards recovery

one of the benefits = it's a good idea.

Else it wouldn't be a benefit.

Unless benefits are bad ideas.

I just reread that thread, ccdevi, and never once did frontporch use the word "event."

just admit that you were either mistaken (hah!) or out an out made it up in the hopes that nobody would notice, its the first step towards recovery

you're so sad, you won't even admit it when you're undressed for all to see, you haven't a shred of character or honesty.

anything that has a benefit is a good idea. i don't think you're that dumb, so I'll just assume its more of the same intellectual dishonesty. As you are well aware, most everything has costs and benefits, and you weigh those to determine if something is a "good idea." if I bought a condo in 15 CPW facing the park, it would have the huge benefit of giving me a great place to live, it also might be a terrible idea depending on my financial situation. you jumping off a building would be a great benefit to this board, but, even with all the people who despise you here, I don't think many would consider it a good idea.

"you jumping off a building would be a great benefit to this board, but, even with all the people who despise you here, I don't think many would consider it a good idea."

You're confusing your pov's: if they think it would be a great benefit to this board, it would have to be a good idea. From their pov.

well no thats obviously wrong, as described above. maybe you just are this dumb.

well no thats obviously wrong