The Calculation for Tacoma, Washington (Dave Ramsey Misery Index)

Situated on Washington’s Puget Sound and with an amazing view of Mt. Sailboat Regatta Commencement Bay Puget Sound Downtown Port TacoRainier, Tacoma ranked 11th on Forbes fastest growing cities list of 2014. Tacoma is home to healthy eating company Roman Meal and confectionery Brown and Haley known for Almond Roca. Tacoma is also home to the 3rd largest newspaper in Washington,the Tacoma News Tribune.

 

The Dave Ramsey Misery Index consists of two numbers made out in the form of money lost due to Dave Ramsey’s advice related to home purchases. (All numbers are based on an after tax calculation) They are as follows:

  1.  Home Price Appreciation (Calculated based on actual data per market) I calculated the actual price difference between the median home sale price in October 2011 (when I read Dave’s advice about home buying) and the median home sale price for March of 2015. This area is represented by Tacoma, Washington. The median home sale price increased 21% for that time period. Using the example of a $166,500 home in that market as of October 2011, the same home would cost $35,232 more or $201,732 as of March 2015. (Information gathered from Zillow Real Estate Research )
  2.  Higher Mortgage Payment. The second number is the difference between what the mortgage payment would have been in 2011 and what the mortgage payment is now, calculated over the life of the loan secured in 2015.

Expressed in numbers the Dave Ramsey Misery Index for Tacoma,Buildings Viaduct Infrastructure Thea Foss Waterway Tacoma Washi

Washington would be as follows:

  • Home Price Appreciation                                                               $35,232
  • Increased mortgage payment next 360 months                     $56,557

               TOTAL MISERY   $91,789

Situated on Washington’s Puget Sound and with an amazing view of Mt. Rainier, Tacoma ranked 11th on Forbes fastest growing cities list of 2014. Tacoma is home to healthy eating company Roman Meal and confectionery Brown and Haley known for Almond Roca. Tacoma is also home to the 3rd largest newspaper in Washington,the Tacoma News Tribune.

 

Each time I post a new misery index it will be for a particular community showing the misery Dave Ramsey has caused his followers DRMIregarding his advice to wait to purchase a home. Back in 2011 I was screaming at the top of my blog posts and videos that it was time to buy a home, an investment property or a primary residence. With interest rates as low as they were and home prices at unbelievable prices it was almost impossible not to see the writing on the wall as to what was going to happen. It has happened. Going forward it appears to me that we are faced with a high probability of increased inflation. With that being said, it is still a good time to buy while interest rates are low and before prices go higher! And, please don’t listen to Dave Ramsey when it comes to buying a home. His advice has created a lot of misery for folks.

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