How many homes does McCain own?
He doesn't know how many!
Makes me wonder.....do you really want an individual running this country if they don't know how many homes they own? :roll:
Oy!
A housing issue: McCain not sure how many they own - Yahoo! News
I am sure in the beginning McCain must have spent many years building his financial freedom. Once you reach to a point where you can afford someone to take over and manage your estate, that when you know you do not need to worry how much money in bank, or how many houses you own, or how many car you own.
I would do the same thing if I had the opportunity. It will take me 20-30 years to arrive where McCain is. Its all about cash flow concept and McCain is truly making good example out of it.
Let me throw in about Tax and owning an investment property. Keep it simple and sweet for all of us to understand.
If you earn $50,000 a year. You will have to pay income tax out of $50,000. Let say if your income remain the same every year.
You buy a home worth 150k. Then later you buy a 2nd home as investment rental property worth 200k. IRS will consider rental property as depreciation value of 27 1/2 years of value you bought at. So investment property worth 200,000 divide by 27.5 = $7,272.27. Means you take off from your income tax from $50,000 annual salary. You only need to pay income tax of $42,727.28.
So if you brought another property worth 200,000, then take off $7,272.27 off from 42,727.28. Means after owning three houses, he will pay only 35,455.01
So to really break even and pay no taxes if you own about 10-12 houses. Then your income tax is 0.00.
That what happen with McCain's investment property. Once he arrive income tax of 0.00 a year. He is comfortable to hire manager to take care of his property and still have income for life.
I know this is complicated but you build up your wealth to point where you dont have to worry about it anymore. I dont blame McCain for not knowing exact number. Especially owning Condo building. That is about 100-200 units per building. It build up fast and a lot income comes through the estate and out.
If you own a condo building and sold entire units, your cashflow easily be $100,000 a year from one Condo's associate fee and after paying manager and etc... That a smart investment for him to start off with.
And he is 70 years old, he had 50 years of building his wealth. If 30 years old with 5 million a year, that is fast. But 70 years old, make sense to have that much of income annually.
I think McCain know what he doing, he know right people to assist him through the process. He is trying to tell you that he has excellent network of financial advisers to guide him through the economy crisis. I know its tough to trust someone who stated that he does not know how much exactly. It like asking someone who does not know exact balance in their bank at this moment. Down to the cents, no rounding off. That show McCain is honest about his financial situation.
!!!
haha