Money – Page 18 – 5 Minutes with Joe

Last summer, my wife, daughter and I scoured the Washington suburb of Bowie for a house to buy. After a month of house hunting, we decided to stay put in our rental house, located in a nicer neighborhood and much closer to downtown Washington (We live off of Connecticut Ave. just three miles from the city).

The decision not to buy came with great angst. Rising real estate prices made the potential equity gains look promising, and we were simply ready to be homeowners. But the math simply didn’t work. When factoring in taxes and insurance, our monthly mortgage would have approached $2,200, compared to our $1,100—starting this month, $1,200—rent. We couldn’t see how our quality of life would be better doubling our monthly housing payment, even factoring in potential equity gains or tax breaks.

Yesterday I sat near the water fountain adjacent to the Lakeforest Mall kids play area, while my daughter and two friends romped around nearby. Maybe 10 minutes after I plunked down near the water, a chunky kid, probably nine or 10 years old, ran by and spotted a penny on the carpet. “Is this yours?” he asked. I said, “No”. Up ran another kid, much smaller and no older than six years old. “It’s mine!” He grabbed the coin, threw it in the water and ran up the stairs.

“What a little liar”, I thought, completely taken back. I knew for a fact, the coin didn’t belong to this kid, who clearly had just arrived at the play area. Not just a liar, but he took the coin from a much bigger kid, too. The exchange really bothered me, and I wondered what kind of adult this kid might become.

Category: Money

Pop Goes the Housing Bubble

Like Father, Like Son