All Forum Posts by: Account Closed

Hi Rich. Sorry to hear you were sick. I was going to call you several days ago when I stopped by your Erin Dawn property. Looks like things are coming along nicely. I didn't go inside since the tile guys were getting ready to grout -- I just peeked through some windows and looked around outside. The house design certainly puts that golf course/mountain view to good use!

Regarding building permits and impact fees, I have been comparing those fees in several areas this week. It looks like So. UT is around $15-17k for fees nowadays. $4,000 in Washington City just for park impact fees alone. Ouch. I thought that was crazy, but then I checked a couple areas in CA. My old hometown in So. CA is around $44k PLUS school fees. A couple cities in No. CA were $52k PLUS school fees. It seems like CA cities are forcing people to build McMansions simply to justify the building fees. People definitely need to do their due diligence when it comes to building fees!

I just read a couple articles about the new jobs report, including the one Bryan linked. CNN's current headline reads "Jobless rate plummets" and they are quick to point out "...employers added 120,000 jobs in November." Good news, right?

But, then when you dig deeper you can find the whole truth. The unemployment rate dropped 0.4 percentage points because 120,000 jobs were added and "315,000 people had given up looking for work and were no longer counted as unemployed." (That quote is from USAToday -- CNN leaves out this number for some reason. CNN just says "...even more people gave up on their job searches altogether" and doesn't want to give the exact number.)

Also from USAToday:

"More than half the jobs added were by retailers, restaurants and bars, a sign that holiday hiring has kicked in."

Further down they show by "more than half" they mean 72,000 jobs (60%). 72,000 low-paying, temporary jobs. What happens in January?

I hate to be a "doom and gloomer." I really do. Trust me, I could care less which political party gets credit for the recovery. I want and NEED people to get good-paying jobs so my business can succeed. But, I just don't see this as a recovery. Nearly triple the number of people are falling off the unemployment radar by giving up instead of getting a job. Not good news. More than half the jobs being created are low-pay retail jobs. Not good news. These people are the ones that get back all of their federal income taxes (and most likely MORE in tax credits if they have kids). Not good news.

Yes, I understand there are little pockets of recovery throughout the nation (like Austin, which I visited last month). Some of that is due to new companies starting up. Some of that is due to existing companies moving from business-unfriendly states like California. But, the nation as a whole still has a long way to go for a true recovery that includes good-paying, long term jobs.

Hi Rich. In St. George it seems like the $200-$300k price range is starting to see more activity. I've been watching some cheaper houses ($100k-$150k) and they are sitting on the market for 6+ months. But, so far this year my neighborhood (couple blocks south of Harmons) had four houses go on the market for the mid-$200k range and they all sold within a month or two at most. This is a big turn-around compared to last year when one of those same houses sat on the market for over 6 months before getting an offer. Right now there is one on the market for $349k. I think they'll be waiting a while for a buyer at that price.

I'm also surprised to see a glimmer of spec building in this area again. As Riverside Dr. curves around into 3050E, there is a subdivision that originally started back around 2006. They built a few houses, then stalled out for the past few years. This year someone built three spec houses there, which they are just finishing right now (been watching the progress since I take that road to Home Depot and Costco). I'll be curious to see how long it takes for them to sell.

You reminded me about my old way to check inventory. I used to go to Realtor.com and see how many houses with 2+ bed/2+ bath were for sale in St George and compare it to Las Vegas (just as a gauge against the nearest big city). It used to be about 26,000 for Vegas and 2,600 for St George. I just looked again and it shows 18,000 in Vegas and under 900 for St George. I haven't checked that inventory in over a year. I'm surprised it is so low. Perhaps this area is recovering faster than I thought it would...

The Zero Plan was created by the Fiscal Responsibility Commission. A small summary can be found on About.com at:

Zero Plan Summary

The original proposal can be found in PDF format on fiscalcommission.gov at:

Fiscal Commission PDF

I would like to see the Zero Plan implemented. For those that haven't seen it yet, a few key points are:

1. No deductions or credits, period.

2. There are only three tax brackets: 8%, 13%, 24%.

3. Taxes become extremely easy to calculate, so everyone would be able to use a one-page form each year for their federal taxes. (Tax accountants and lawyers won't appreciate that one.)

4. Lower corporate taxes from 35% to 26%.

With this type of tax policy, a few things happen. First, everyone gets some 'skin in the game.' Second, the government can no longer manipulate people's actions through tax policy. Third, US corporations become more competitive in the global marketplace.

While I don't think this system would be perfect, it would at least get us moving in the right direction toward a simplified, fair tax code.

If I had to put an actual dollar amount on it, I would consider myself rich if I had passive income that put me in the top 1% of earners. Right now, that is approximately $380,000 a year. As to whether or not I think someone making $380,000 a year "should shoulder the burden of carrying others via this tax system," that is a much touchier subject and it would be impossible to avoid politics.

At first glance that amount seems like a lot, but then I look at data that shows there are over 145,000 households that bring in $1,500,000+ a year (top 0.1% of households). I guess there's rich, and then there's uber-rich.

I'm in the same boat as Alex and George. I built my house and paid cash for it. Now I live on about $900/mo including property taxes, home/truck insurance, maintenance (setting aside $100/mo for long term maintenance), food, utilities, etc. The rest of my income gets set aside for investments.

I wouldn't suggest building a house unless you are actually a builder or in the trades yourself. Instead, I would be looking at finding a duplex, buying it with an FHA loan (3.5% down payment), and living in one side while renting the other. Seems that would be one of the best ways to get into the rental game and start building some equity.

That lease is sucking up a lot of money. Could you get a roommate to pay $300-400? I know that isn't ideal, but it will help save money. The best advice I can give to someone just starting out is to live like a college student as long as possible. Keep the old car, opt for the cheaper cell phone plan (and don't go over your minutes/data), don't eat out for every meal (good for both your wallet and your health), don't buy expensive clothes, etc. Remember, every dollar you spend on 'stuff' now could have been $20+ in future retirement years if you invested it wisely.

Some people take this to an extreme. Warren Buffet still drove an old VW Beetle even after he was a multimillionaire. He knew that spending $20,000 in current dollars meant giving up millions of future dollars. While I think there needs to be some balance between enjoying your life along the way and planning for the future, just remember what you're giving up each time you opt to splurge on something now.

As for rentals, I agree with Matt, Ben, and the other posts. If you can get out of your lease (or once the lease is up), look into buying a duplex with an FHA loan and live in one side while renting the other. That way you have one guaranteed great tenant (you!), and hopefully one more good one to help you build some equity.