Tax Purchase

[TennesseeTuxedo]

You're right CB, kids today are absolute fools to take out 30 year field rate mortgages at 4% with zero down when they can save up a few years and capture that ever elusive 7 or 8% deal which is where we'll be within 3-4 years.

 

[Caustic Burno]

You're right CB, kids today are absolute fools to take out 30 year field rate mortgages at 4% with zero down when they can save up a few years and capture that ever elusive 7 or 8% deal which is where we'll be within 3-4 years.

And those lenders giving every Tom, Dick and Harry a mortgage almost collapsed our economy.
Good credit, bad credit, no credit come on down sign the papers.
It is only a deal if you have the cash to buy it otherwise you are still having sex with the banker and not getting kissed.
The Good Book even says the Borrower is a slave of the lender.

 

[melking]

The good book also says that anyone who doesn't believe the priest must be put to death, as well as anyone who curses his father or mother, as well as anyone who follows another religion. Not too many left if we kill everyone the good book tells us to. Fact is, what we are discussing here has nothing to do with todays economy nor 1930's economy. What we are talking about is the ability of a person with a bit of common sense to leverage his smaller amount of money into a larger asset. If you like keeping your cash in the mattress, by all means do so but don't look down on people who choose another route. Like I said, if we follow the good book, you wouldn't be reading this because I would have already been put to death for my many transgressions.

 

[fitz]

Still with you on this sky. Times are different than they were when CB and some of the others started. A younger farmer or rancher might be able to eke out a living on cash, but the only chance to get to the point that you have a retirement fund is to use other peoples money to leverage your own. Only in that way can you compete with the big outfits. The man who works my cows with me lives on cash and while I can't say that his kids are going to be hengrey, I can say that they are destined to work themselves to death just like him if the hold the current course. All of their examples do not take into account that you still "have" the house, tractor, etc after the depreciation period.

:nod: :clap:

You don't have the house tractor's or anything else unless you bought it with cash it belongs to the lender.
You keep BSing yourself if it makes you feel better.
So what you are telling the world without a banker lending you money you are out of business.

Wouldn't be out of business, I just try to make it as easy as possible with dependable machinery if I can afford it. Three years ago sold the junk and bought new haying equipment. Fifty percent cash, fifty pecent financed at 1%. It's in the shed, paid for and depreciating. I guess half of it belonged to the banker for a while. If I had saved enough to pay cash I would still be spending keeping worn out equip. going.

fitz

 

[TexasBred]

TB what they don't understand is nothing here has changed.
That 25000 dollar home was just as much of the household income dollars as the 100,000 dollar home is today.
When I was making 3.50 dollars an hour a good wage at the time a 25,000 dollar house was the same stretch it was four times annual income.
Difference is I believe you are better off renting and saving your money to put down a good down payment paying off early or paying cash.
Too many young couples become over extended first rattle out of the box digging a hole that is very hard to fill back up.
There are no hidden cost or surprises renting leaving a steady stream to save every month.

Absolutely true....and all the new relaxed underwriting guidelines allows dam near anybody that applies for a loan to qualify with not a clue where the 1st payment and all other will come from. Add this to a two car pmts, furniture financed, a baby on the way or already here, two or three credit cards they're paying minimim pmt on and they have pretty much eliminated themselves from the prospect of every doing anything other than live from pay check to pay check.

 

[Caustic Burno]

The good book also says that anyone who doesn't believe the priest must be put to death, as well as anyone who curses his father or mother, as well as anyone who follows another religion. Not too many left if we kill everyone the good book tells us to. Fact is, what we are discussing here has nothing to do with todays economy nor 1930's economy. What we are talking about is the ability of a person with a bit of common sense to leverage his smaller amount of money into a larger asset. If you like keeping your cash in the mattress, by all means do so but don't look down on people who choose another route. Like I said, if we follow the good book, you wouldn't be reading this because I would have already been put to death for my many transgressions.

The economics of a dollar hasn't changed since they printed the first one.
It is still about managing what you have and make versus being owned by the lender.
No matter how you want to look at it until you make the last payment the bank can still come and get it they own it not you.

 

[skyhightree1]

this may be a set of stupid examples but im throwing it out there ... a car from the 30's does not have the same power that the cars produced today... Medicine back then and today , Which would you rather use in an emergency ? Economics then and today are 2 different animals thats definately comparing apples to oranges.

 

[Caustic Burno]

this may be a set of stupid examples but im throwing it out there ... a car from the 30's does not have the same power that the cars produced today... Medicine back then and today , Which would you rather use in an emergency ? Economics then and today are 2 different animals thats definately comparing apples to oranges.

You need an aspirin.

 

[skyhightree1]

:lol:

 

[larryshoat]

If you borrow money on something that depreciates, or appreciates slower than what you're paying on it you're getting farther behind. If you borrow money on something that appreciates faster than what you're paying on it you get better off. Big difference between borrowing for a new pickup and buying a pen of steers.

Larry

 

[TennesseeTuxedo]

The good book also says that anyone who doesn't believe the priest must be put to death, as well as anyone who curses his father or mother, as well as anyone who follows another religion. Not too many left if we kill everyone the good book tells us to. Fact is, what we are discussing here has nothing to do with todays economy nor 1930's economy. What we are talking about is the ability of a person with a bit of common sense to leverage his smaller amount of money into a larger asset. If you like keeping your cash in the mattress, by all means do so but don't look down on people who choose another route. Like I said, if we follow the good book, you wouldn't be reading this because I would have already been put to death for my many transgressions.

Finally a voice of reason.

 

[TexasBred]

The good book also says that anyone who doesn't believe the priest must be put to death, as well as anyone who curses his father or mother, as well as anyone who follows another religion. Not too many left if we kill everyone the good book tells us to. Fact is, what we are discussing here has nothing to do with todays economy nor 1930's economy. What we are talking about is the ability of a person with a bit of common sense to leverage his smaller amount of money into a larger asset. If you like keeping your cash in the mattress, by all means do so but don't look down on people who choose another route. Like I said, if we follow the good book, you wouldn't be reading this because I would have already been put to death for my many transgressions.

Get your "good book" out and finish reading it. There was a reason Jesus lived and died...that you might live by God's grace...not the law. Otherwise there was no reason at all for him to have ever been born.

 

[skyhightree1]

The good book also says that anyone who doesn't believe the priest must be put to death, as well as anyone who curses his father or mother, as well as anyone who follows another religion. Not too many left if we kill everyone the good book tells us to. Fact is, what we are discussing here has nothing to do with todays economy nor 1930's economy. What we are talking about is the ability of a person with a bit of common sense to leverage his smaller amount of money into a larger asset. If you like keeping your cash in the mattress, by all means do so but don't look down on people who choose another route. Like I said, if we follow the good book, you wouldn't be reading this because I would have already been put to death for my many transgressions.

Finally a voice of reason.

:nod:

 

[bigbull338]

all of these good opions on ways todo things.but i see something that yall are forgetting.30 or 40 yrs ago you used to could save up an buy what you wanted but not anymore.i knew a guy that rented a house for 30 or 40yrs.well all he did was pay for that house 2 or 3 times.then he finally moved an bought a house in his old age.now days the rent is as much or more than the house payments.if your making good money an you dont owe anything.then the extra money most people have they blow an dont save.so you might as well be making the payments.

 

[Caustic Burno]

The good book also says that anyone who doesn't believe the priest must be put to death, as well as anyone who curses his father or mother, as well as anyone who follows another religion. Not too many left if we kill everyone the good book tells us to. Fact is, what we are discussing here has nothing to do with todays economy nor 1930's economy. What we are talking about is the ability of a person with a bit of common sense to leverage his smaller amount of money into a larger asset. If you like keeping your cash in the mattress, by all means do so but don't look down on people who choose another route. Like I said, if we follow the good book, you wouldn't be reading this because I would have already been put to death for my many transgressions.

Finally a voice of reason.

What you are talking about doing is Keynesian economic's on a personal scale. That policy caused the Great Inflation for a decade in the USA in the early 70's. People in the United States demonstrated the process when they took out home equity loans assuming their homes would always go up in value and that they could then sell the home to pay back the debt. The bubble on borrowing has burst several times in the last few decades both times on land. The S&L debacle in the early 80's that we are still paying for, the housing bust that our kids will be paying for the rest of there lives was all due to leveraging smaller assets into a larger asset that went belly up.
An asset has no value unless it is sold otherwise it is a liability you are paying for.
The money policies you speak of are of the Nixon\Carter era the exact same thing happened there cheap interest rates to try and stimulate the economy followed by runaway inflation and high interest rates causing even higher unemployment.

 

[Caustic Burno]

all of these good opions on ways todo things.but i see something that yall are forgetting.30 or 40 yrs ago you used to could save up an buy what you wanted but not anymore.i knew a guy that rented a house for 30 or 40yrs.well all he did was pay for that house 2 or 3 times.then he finally moved an bought a house in his old age.now days the rent is as much or more than the house payments.if your making good money an you dont owe anything.then the extra money most people have they blow an dont save.so you might as well be making the payments.

Again nothing changes it is all market driven.
You can not get more than the market will bear.
No matter the wages or the time rent has been right at 30% on the gross monthly income for the area you live in.
Thirty percent is same on a 100 dollars or a 1000.

 

[orton]

Skyhigh, for the life of me I can't figure out why you are unwilling to pay your fair share, its for the kids........................................in Syria! :mrgreen: I think you said you farm about 1500 acres, it takes fuel, fert., tires etc. 15,000 gal of fuel would be about 52,000, pre buy your fert. and seed. This comes right off your bottom line. Just remember farm income can and will fall. Next year? Just my :2cents:

 

[skyhightree1]

Skyhigh, for the life of me I can't figure out why you are unwilling to pay your fair share, its for the kids........................................in Syria! :mrgreen: I think you said you farm about 1500 acres, it takes fuel, fert., tires etc. 15,000 gal of fuel would be about 52,000, pre buy your fert. and seed. This comes right off your bottom line. Just remember farm income can and will fall. Next year? Just my :2cents:

LOL I guess just call me stingy... Na its more than 1500 acres we expanded this year ..yea all that stuff is gonna help out we have been replacing tractor tires quite a bit this year now that you mentioned it.

 

[TexasBred]

Skyhigh, for the life of me I can't figure out why you are unwilling to pay your fair share, its for the kids........................................in Syria! :mrgreen: I think you said you farm about 1500 acres, it takes fuel, fert., tires etc. 15,000 gal of fuel would be about 52,000, pre buy your fert. and seed. This comes right off your bottom line. Just remember farm income can and will fall. Next year? Just my :2cents:

When you start prepaying expenses it eventually catches up with you. Maybe you get "lucky and have a bad year" and dont' ahve to do it. That don't make a lot of sense either.

 

[skyhightree1]

yea i probably wont be prebuying anything.