After your truck is paid off....

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Here is what makes absolutely NO sense to me what so ever, you are willing to pay $300,000 for a house, JUST to get $12,000 back in tax! Why not just KEEP the $300,000, $300,000 is worth a hell of a lot more then $12,000! Spend $300,000 just to get $12,000 back, that makes no sense what so ever to me. Now I can see if you happen to be in the market for a house, then yes it is nice to have the $12k back, but to do it JUST to get $12k back makes no sense.

I'd do it as an investment. A builder I found here in Ontario offers a 8% cashback if you have them build your house. So, I thought why not use that as downpayment and build - let's say - a triplex or fourplex. I could move into Unit 1 and rent out Unit 2, 3, and 4. I would spend NOTHING out of my own pocket and the tenants would be paying the mortgage. Plus, I could write off the depreciation on the bigger part of the house.

If I had $300,000 cash sitting under the mattress, I'd probably use it as a downpayment on a few four-plexes or multi-family buildings to create some passive income so that cash comes in every month without my active participation.

In my opinion, passive income beats the heck out of any RRSP or other type of registered savings. You don't need savings, you need CASHFLOW!

[BanditsCousin]

I thought houses don't depreciate and are a tax write-off like a truck would be. I thought the write-off comes from the intersts paid on the loan or something like that.

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I asked my CPA about this years ago. She said the best long term plan is to take accelerated depreciation and run the truck for as many years as possible.What many truckers don't realize is that when you buy a new truck, you have to pay capital gains tax on the trade-in value of your old truck. So if you trade in your truck every 3 years after it is fully depreciated, you pay more in taxes than if you just kept your old truck. I've had my Pete for 10 years, shooting for another 10.

Here's a question: how much do you spend on repairs when the truck is getting old? I just did my 2008 taxes (finally) and discovered I "invested" 23,000 bucks into my 2004 International. Now, the most part of this money was not repairs but buying things I wanted to see in my own truck - like higher horse power, Dyno tuning, and so forth. A friend of mine keeps telling I should sell the truck while it still has warranty saying I could order something from the factory that fits me to a T, and then I wouldn't have to spend money on "upgrades".

Any comments? Did you get your Pete with exactly the same specs as you wanted?

[solo379]

how much do you spend on repairs when the truck is getting old? I just did my 2008 taxes (finally) and discovered I "invested" 23,000 bucks into my 2004 International.

I've never ever spend that kind of money, in a single year. That's including the year i did complete in frame on my engine. After the first 5 years, about 10 grand average, seems reasonable to me. Of course it's all depends...but if you are averaging more than that, it's time to say goodbye...

[matcat]

This is my point too. lol. I have not used credit to buy my property. I bought on land contract. just lawyers fee. $75.00 for everything. a couple times I only put as low as $ 500.00 dn & then a year or 2 later would pay a couple to a few thousand more & refinance to take years off the note. the refinancing cost is $35.00. I never refinance to get money. only to pay off early. 1 raise my monthly payments, or 2 pay a lump sum. either way to get paid off sooner.

I'm not sure I understand what you are saying. First I had to look up land contract, I understand how that works, but seems risky. Secondly, how do you refinance that if it is not financed to begin with?

[GMAN]

Here's a question: how much do you spend on repairs when the truck is getting old? I just did my 2008 taxes (finally) and discovered I "invested" 23,000 bucks into my 2004 International. Now, the most part of this money was not repairs but buying things I wanted to see in my own truck - like higher horse power, Dyno tuning, and so forth. A friend of mine keeps telling I should sell the truck while it still has warranty saying I could order something from the factory that fits me to a T, and then I wouldn't have to spend money on "upgrades".

Any comments? Did you get your Pete with exactly the same specs as you wanted?

I can't imagine anyone spending $23,000 on a truck in a single year and not having done a in-frame unless you are putting in your truck payments. It would be good if you could separate the actual maintenance items from things you just did on the truck. For instance, upping your horsepower is not really not a maintenance item as far as checking actual maintenance costs.

[dobry4u]

I'm not sure I understand what you are saying. First I had to look up land contract, I understand how that works, but seems risky. Secondly, how do you refinance that if it is not financed to begin with?

Land contracts can be a pretty decent money maker for the property owner, Matcat. Sure it is risky, but that is determined up front because the borrower usually can't get conventional financing. For a borrower/purchaser, you get the opportunity to purchase with often a lower rate then a mortgage lender and the lender/seller gets a better than market return and if the borrower defaults gets the money collected.

Originally Posted by heavyhaulerss
I have not used credit to buy my property. I bought on land contract. just lawyers fee. $75.00 for everything. a couple times I only put as low as $ 500.00 dn & then a year or 2 later would pay a couple to a few thousand more & refinance to take years off the note. the refinancing cost is $35.00. I never refinance to get money. only to pay off early. 1 raise my monthly payments, or 2 pay a lump sum. either way to get paid off sooner.

Land contracts are promise to pay, so it is a loan and a type of credit purchase so where you claim you have not used credit isn't clear to me. Then you said you would refinance to take time off the note, there again credit.

[heavyhaulerss]

I'm not sure I understand what you are saying. First I had to look up land contract, I understand how that works, but seems risky. Secondly, how do you refinance that if it is not financed to begin with?

Their is no risk on my deals. also... it is financed to begin with. so the contract can be refinanced. I will be specific on what I do. I know of a couple ole retiree's. 2 brothers. they own a few hundred properties in & around where I live. all properties are they own are paid for. if I am interested in any of them, I ask for a total price on a particular one. I decide what I ant ot put down. I decide what the monthly payment will be.


the land owners just give me the total price & very good interest rates. we go to the lawyers office. we sign all the paperwork, that verifies all the info is correct. we both sign. I have to pay every month until last payment, then property is mine. I can pay off early. let's just say for example I have 5 years left on a note & owe $24,000. I can pay $8,000 & refinance at the $16,000 balance. 24,000- 8,000 = 16,000. so now I would be paying the same monthly payment & the same interest. I would now have property paid of sooner.



To do this I would have the lawyer redo the amortization schedule. it cost me $35.00 to do this. this is not some back woods handshake deal. taxes & liens on all property are verified if any.

[heavyhaulerss]

Land contracts can be a pretty decent money maker for the property owner, Matcat. Sure it is risky, but that is determined up front because the borrower usually can't get conventional financing. For a borrower/purchaser, you get the opportunity to purchase with often a lower rate then a mortgage lender and the lender/seller gets a better than market return and if the borrower defaults gets the money collected.

Land contracts are promise to pay, so it is a loan and a type of credit purchase so where you claim you have not used credit isn't clear to me. Then you said you would refinance to take time off the note, there again credit.

O.K. let me try again.. there is no credit used. there is no credit check. at all. while my credit is great, I have not needed it or used it to buy property. the money I pay is directly to the land owner. no one else. to refinance, again... there is no credit involved. just a revision of the amortization schedule. has no one else here done this ? this is not a made up story. I am telling it just as it is. the land owner does not even know my s.s. # to check my credit anyway. he does not need it. if I fail to pay the property goes back to him & what I have paid would be considered rent for said property.