Housing prices
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From: Nowhere
Originally Posted by steven975,Oct 18 2005, 11:59 PM
I believe FL had a surplus this year.
All the people "moving up" in houses are finding their tax bill went up by 4x...nasty surprise. FL property tax can only move up a few % a year, but if you move into a NEW house, you pay the tax on the value.
All the people "moving up" in houses are finding their tax bill went up by 4x...nasty surprise. FL property tax can only move up a few % a year, but if you move into a NEW house, you pay the tax on the value.
Indiana legislators are smarter than Florida legislators apparently.
In Indiana, the property tax rate was kept the same, and the legislature simply passed a revised formula for what property was "worth". The new formula guaranteed that almost every house would go up in value, many by 100% or more. Some residents in Lake County (where Gary is located) had their tax bills triple or quadruple. They were paying taxes based on an early 90s formula; the new formula disregarded that nobody wants to live there so the houses were greatly overvalued.
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Originally Posted by BPUKiller,Oct 17 2005, 11:03 PM
California is not going to have a crash. People are still moving here and they are still building. Baby boomers want to retire in sun belt areas. California, Arizona, and Nevada will remain strong markets. They are also investing in 2nd homes, something the rest of the developed world has and we are getting into. There will be a slight adjustment, but I feel people are investing real estate. The fact a house is not a liquid asset, or liability(depending on how you see it), means things can not crash quickly. Trillions of dollars moved from the money markets to the real estate market in recent years. Baby boomers will have to start with-drawing from retirement accounts very soon, sure some will go back to CD and Bonds, but the way I see it is real estate will continue to be a strong investment. California is a special place. Every single Native American language in America is represented in California. This means people have been coming here from everywhere for thousands of years and this trend will continue.
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Adam
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From: Jersey City
Read an article in the NY Times a few weeks ago about the Japanese housing collapse. This man bought a house at the market peak in the early 90s right before the collapse. He took out a standard 30 year mortgage with the normal down payment. If he sells the house today - about 15 years later - the proceeds from the sell STILL WON'T BE ENOUGH TO COVER THE REMAINING MORTGAGE !! THAT'S SCARY !!
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From: Doh!!
Originally Posted by mister_two,Feb 8 2006, 09:19 AM
Read an article in the NY Times a few weeks ago about the Japanese housing collapse. This man bought a house at the market peak in the early 90s right before the collapse. He took out a standard 30 year mortgage with the normal down payment. If he sells the house today - about 15 years later - the proceeds from the sell STILL WON'T BE ENOUGH TO COVER THE REMAINING MORTGAGE !! THAT'S SCARY !!
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From: Nowhere
Originally Posted by YodaJuiceS2K,Feb 7 2006, 07:21 PM
The fact that this asset class is not liquid is exactly the reason California and other over-priced areas are bound for a bust. I see one of two things happening. The market could adjust downward for whatever reason, making the house people are in not cover the outstanding loan. There could being a mini-recession in which many people lose their job and are unable to pay the debt service. As the banks take the collateral back, they sell it at a discount because many people are defaulting at once, making many houses be on the market at once.
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Adam
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Adam
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From: La Habra
Banks had to be absolutely raking in money the past few years on defaulted mortgages. By the time the house was foreclosed and re-sold it must have appreciated 30% or more. I sure hope they put away some of those run-away funds for defaults that happen just AFTER the housing slump.
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