LA County Forum > Worth it in LA?
There's no place like home. There's no place like home.
FSD
Celia, I am sorry I did not catch this question before.
If you have a $350K mortgage, your tax deduction is perhaps $21, depending on your loan. At a 33% tax bracket, you save $7K on your taxes.
But, a house costs so much money! You will easily spend $300- $500 per month at Home Depot, to plant new trees, paint the walls, replace that old faucet, spruce up the fence, get some new curtains for the kids' bedroom, replace that linoleum with tile, get the new roof or get Rotor Rooter out to get that tree root out of the septic line, etc. A house costs money too! So most of your $7K savings is gone!
Now, you also have the loss of capital. Your $500K house would go down 10% annually the next few years, so you lose $50K/year.
Pay your taxes or go to Kansas. In a couple years, is a better time to buy, IF money is your #1 concern.
If you do not care about the money, and you want to build a long term home for yourself, and you can afford to buy with a 30 year fixed and have a job NOT tied to real estate that will survive the Recession, then you could buy now.
Schahrzad Berkland
what is the overall situation in Malibu?
don cross
Is it worth to buy in LA to help my taxes? Or should I move back to Kansas to avoid housing decline? Our income taxes are $18 K every year and I need a tax break. Isn't buying a house the best way to go? But I won't get paid as much in Kansas.