4 karma · joined May 14, 2011
Plus, lumping the other options in together isn't necessarily fair. Revoking existing software patents would have some pretty severe effects on legitimate companies and their shareholders. And the "other changes" is extremely vague - one could assume that other changes includes placing the onus on the company applying for the patent to prove its uniqueness, which would increase the cost to receive a patent and decrease the likelihood of abuse.
All in all, 19 votes at the moment support the current system. Less than 1%. And to be fair, roughly 15% believe better software patents would be OK.
Without property tax, $1700/mo means taking a 25 year loan of $320k at 4% interest. Obviously whether this is too high or too low depends entirely on where they live, but again I'm assuming that they were getting a similar place for roughly $1700/mo in rent, and are comfortable in that lifestyle. That's also assuming they have the cash for a down payment ($65k if they want to put 20% down).
So, if you run the mortgage numbers, in 5 years, assuming interest rates stay at 4%, they will have paid $61k in interest. Property taxes over 5 years (where I live, anyway) on a $385k home would be $15k-$20k on top of that. If we factor property tax into the $1700/mo, then they can only afford a $265k loan, and only pay $50k in interest over 5 years.
Either way, $50k or more interest + $18k in property tax + $50k in depreciation + $15k in closing and real estate fees costs them a lot more than renting for the same time period, and that's assuming that nothing goes wrong. If their roof starts leaking, the deck collapses, they need to move for work or their growing family in less than five years, they are in an even worse situation. (One might suggest we should amortize the $15k in closing and real estate costs over the 5 years and buy a smaller place accordingly, but at that point your $1700/mo rent becomes more like $1150/mo in mortgage payments, so at that point the question becomes how out of whack the renting and buying markets are, assuming again that you want to maintain a similar living standard, and not be downsizing as you're turning 30.)
The obvious question then is how likely "even if your house will depreciate $50k" ends up being.