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Feb 7th, 2025
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 Re: Interest rates
[Re: Dave Davidson]
#9185011
02/11/25 04:46 AM
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Joined: Oct 2015
Posts: 883
7x57
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Joined: Oct 2015
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Actually Texas real estate has been my best bet considering inflation. The home that I bought for $100k 30 years ago is now worth about $275 or more. I have a homeowners exemption so taxes are bad. Of course, I’m living in it so can’t consider it a financial asset.
The rent house that I paid $40k for is now about $200k. The rent house is hurting me. Grandson and his wife are in it and I’m taking a beating. I can come out ahead by giving it to them and save $. Only problem is that I found out the hard way that the woman almost always gets the house in a divorce and they are always possible.BTW, it was my grandparents house. When they passed, I bought it from my mother. Can’t get a homeowners exemption as it is classified as commercial. Your grandson's wife wouldn't be able to touch the house if you gifted it to him, unless he was silly enough to put it under her name as well. When you do the deed of gift, make sure it is ONLY to your grandson and it will remain separate property from the marital estate. Investing in real estate is very risky now a days with how casual people have become with stiffing landlords on rent.
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Re: Interest rates
[Re: Stompy]
#9185023
02/11/25 11:12 AM
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Joined: Sep 2004
Posts: 13,587
RedRanger
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Joined: Sep 2004
Posts: 13,587 |
5 year guaranteed fixed annuity at Schwab is paying 5.25%
$100,000 minimum.
3yr is 5.05%  Thanks for the heads up on that one
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Re: Interest rates
[Re: Dave Davidson]
#9185062
02/11/25 01:59 PM
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Joined: Jun 2006
Posts: 9,225
Dave Davidson
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At 82 yoa, I have to be pretty risk adverse. Not enough years to recoup from either bad decisions, bad politics or bad luck.
And bad politics is what we have. My original contention that 5% return on an investment when inflation is 7% is a loser. More so after taxes on the “gain”. It’s all about reduction of purchasing power.
Last edited by Dave Davidson; 02/11/25 01:59 PM.
Without a sense of urgency, nothing ever happens.
Boy, if I say "sic em", you'd better look for something to bite. Sam Shelley, Rancher Muleshoe Texas 1892-1985 RIP
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Re: Interest rates
[Re: Dave Davidson]
#9185066
02/11/25 02:06 PM
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Joined: Oct 2008
Posts: 18,653
68rustbucket
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That 5% is better than burying it in the backyard.
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Re: Interest rates
[Re: 68rustbucket]
#9185095
02/11/25 02:58 PM
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Joined: Sep 2004
Posts: 13,587
RedRanger
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That 5% is better than burying it in the backyard. 5% gauranteed like CD's or mutual funds is winning I will take that anyday and anytime on something safe and gauranteed.
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Re: Interest rates
[Re: Old Rabbit]
#9185108
02/11/25 03:27 PM
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Joined: Jan 2009
Posts: 839
Sidebuster
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Just throwing this out for consideration. We put lots of our inheritance money in School Bonds. Some are paying 4% TAX FREE so the kept yield is around 5.7%. The Texas ones are guaranteed by the Permanent School Fund (PSF) Bond Guarantee Program.
If you have an investment company, give them a call and see what they have. Don't you mean tax deferred instead of tax free?
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Re: Interest rates
[Re: Dave Davidson]
#9185138
02/11/25 04:24 PM
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Joined: Aug 2005
Posts: 33,489
txtrophy85
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Actually Texas real estate has been my best bet considering inflation. The home that I bought for $100k 30 years ago is now worth about $275 or more. I have a homeowners exemption so taxes are bad. Of course, I’m living in it so can’t consider it a financial asset.
The rent house that I paid $40k for is now about $200k. The rent house is hurting me. Grandson and his wife are in it and I’m taking a beating. I can come out ahead by giving it to them and save $. Only problem is that I found out the hard way that the woman almost always gets the house in a divorce and they are always possible.BTW, it was my grandparents house. When they passed, I bought it from my mother. Can’t get a homeowners exemption as it is classified as commercial. Do they pay rent?
For it is not the quarry that we truly seek, but the adventure.
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Re: Interest rates
[Re: Dave Davidson]
#9185175
02/11/25 05:30 PM
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Joined: Jun 2006
Posts: 9,225
Dave Davidson
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Yeah, they pay rent. About 40% of what previous tenants did. That amounts to about 1/2 to 2/3 of the property taxes and insurance. We do 90% of the maintenance, repairs, and other fixes. I don’t really need the money but figure they ought to have some skin in the game.
Without a sense of urgency, nothing ever happens.
Boy, if I say "sic em", you'd better look for something to bite. Sam Shelley, Rancher Muleshoe Texas 1892-1985 RIP
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Re: Interest rates
[Re: Dave Davidson]
#9185183
02/11/25 05:42 PM
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Joined: Oct 2006
Posts: 19,046
ducknbass
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Hard times create hard men.
Hard men create good times.
Good times create soft men.
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Re: Interest rates
[Re: Dave Davidson]
#9185210
02/11/25 06:22 PM
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Joined: Aug 2005
Posts: 33,489
txtrophy85
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Yeah, they pay rent. About 40% of what previous tenants did. That amounts to about 1/2 to 2/3 of the property taxes and insurance. We do 90% of the maintenance, repairs, and other fixes. I don’t really need the money but figure they ought to have some skin in the game. I would first find out a way to stop taking a beating on the home as a rental. Unless you’re doing it out of the kindness of your heart, but the fact that you brought it up and used the phrase “ taking a beating” eludes to the fact there is some bitterness building up over the deal. If you don’t need the money just deed the house over to him and let him keep up with taxes and maintenance. Then take your money and put it in CD’s or T-Bills and enjoy the rest of your days.
For it is not the quarry that we truly seek, but the adventure.
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Re: Interest rates
[Re: txtrophy85]
#9185231
02/11/25 07:05 PM
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Joined: Jun 2006
Posts: 9,225
Dave Davidson
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TX85, I’m taking a financial beating, know it, and damn sure not whining. I’m giving my grandson and his bride an opportunity to live in a house instead of an apartment and build a nest egg that most young newlyweds don’t get to do.
Hell, I don’t need the money.
Without a sense of urgency, nothing ever happens.
Boy, if I say "sic em", you'd better look for something to bite. Sam Shelley, Rancher Muleshoe Texas 1892-1985 RIP
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Re: Interest rates
[Re: Sidebuster]
#9185232
02/11/25 07:11 PM
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Joined: Jul 2011
Posts: 10,461
Old Rabbit
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Just throwing this out for consideration. We put lots of our inheritance money in School Bonds. Some are paying 4% TAX FREE so the kept yield is around 5.7%. The Texas ones are guaranteed by the Permanent School Fund (PSF) Bond Guarantee Program.
If you have an investment company, give them a call and see what they have. Don't you mean tax deferred instead of tax free? Nope, not deferred. Please google (are investments in school bonds tax exempt).
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Re: Interest rates
[Re: Dave Davidson]
#9185280
02/11/25 08:42 PM
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Joined: Aug 2005
Posts: 33,489
txtrophy85
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TX85, I’m taking a financial beating, know it, and damn sure not whining. I’m giving my grandson and his bride an opportunity to live in a house instead of an apartment and build a nest egg that most young newlyweds don’t get to do.
Hell, I don’t need the money. sorry, when you use the words "hurting" and "beating" it implies that its causing you some grief, be it mental, financial or otherwise.
For it is not the quarry that we truly seek, but the adventure.
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Re: Interest rates
[Re: Old Rabbit]
#9185620
02/12/25 03:27 PM
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Joined: Jan 2009
Posts: 839
Sidebuster
Tracker
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Just throwing this out for consideration. We put lots of our inheritance money in School Bonds. Some are paying 4% TAX FREE so the kept yield is around 5.7%. The Texas ones are guaranteed by the Permanent School Fund (PSF) Bond Guarantee Program.
If you have an investment company, give them a call and see what they have. Don't you mean tax deferred instead of tax free? Nope, not deferred. Please google (are investments in school bonds tax exempt). Thanks, I'll have to check them out.
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