housing makt still in the pits

[SOREHOOF]

A lot of these foreclosures are on 2nd homes that people don't want to dip into their savings or investments to save, or are waiting to see if our benevolent Govt. will throw them a bone. Of course some are primary homes of people who lost their jobs, and I have no problem with helping them out.

[SOREHOOF]

There is nothing wrong with renting.

[ddthetide]

Originally Posted by SOREHOOF

There is nothing wrong with renting.

i rented for 26 yrs. until Very recently. the reason we bought, prices Finally fell to where we could afford something we Wanted, in a neighborhood we Wanted to live and we're paying about what we were paying per month in rent.
we got this place, $20k Below asking price, because it had been on the market 2 yrs starting a 3rd. AND, it was Almost $100k cheaper than 4-5 yrs ago.

Originally Posted by ddthetide

i rented for 26 yrs. until Very recently. the reason we bought, prices Finally fell to where we could afford something we Wanted, in a neighborhood we Wanted to live and we're paying about what we were paying per month in rent.
we got this place, $20k Below asking price, because it had been on the market 2 yrs starting a 3rd. AND, it was Almost $100k cheaper than 4-5 yrs ago.

This is how it is supposed to work.
Congrats on your new home.
I hope this type of thing happens in the
rest of the country.

It is a nice feeling that the money you
pay every month is going to something
you own.

[ddthetide]

Originally Posted by pgardn

This is how it is supposed to work.
Congrats on your new home.
I hope this type of thing happens in the
rest of the country.

It is a nice feeling that the money you
pay every month is going to something
you own.

IMO, most homes here are still over priced. we just got luck and found the right person.
2 problems here, many people are VERY upside with their mortgages and the state and county tax rate. about $250 a month of our mortgage goes to pay the taxes (this house is only 6-7 yrs old). one development we looked at, taxes would have been $375-400 per month and the neighborhood was not as nice as this one.

[SOREHOOF]

The more houses that are unoccupied and not paying taxes, the more the taxes will rise to make up for it, especially school taxes. I am afraid that if this energy bill goes through it will be a double whammy. Schools use electricity too. School taxes jumped big time where I live due to oil costs and will probably skyrocket with another increase in energy costs. That coupled with a decreased tax base could be murder for me. Sucks when you're careful to buy within your limits and still have enough $ left to enjoy life then oil prices, gas prices, and taxes threaten to take it all away. I believe home assessments were inflated so localities could get more in property taxes while everything was going great guns. That may keep them inflated for a while.

[randallscott35]

Houses are a depreciating asset. Always have been. They are a place to live, not an investment.

[SuffolkGirl]

Originally Posted by SOREHOOF

The more houses that are unoccupied and not paying taxes, the more the taxes will rise to make up for it, especially school taxes. I am afraid that if this energy bill goes through it will be a double whammy. Schools use electricity too. School taxes jumped big time where I live due to oil costs and will probably skyrocket with another increase in energy costs. That coupled with a decreased tax base could be murder for me. Sucks when you're careful to buy within your limits and still have enough $ left to enjoy life then oil prices, gas prices, and taxes threaten to take it all away. I believe home assessments were inflated so localities could get more in property taxes while everything was going great guns. That may keep them inflated for a while.

If there is a mortgage on the property and the loan was set up with escrow impounds, the mortgage holder is paying the taxes and adding it to the borrower's escrow account as an escrow advancement. If/when the property is foreclosed upon, that figure is added in to the principle due. If there are no mortgage impounds on the property the city/municipality can file a tax lien. The city/municipality will eventually get their money, but the forclosure mess does put a cog in the stream of payments they receive.

Real estate taxes are stacked in favor of the city. If the assessed value goes down, then the mil rate (the figure they use to calculate the real estate taxes due) goes up so that they "meet their goal". If the assessed value goes up, the city can crow about dropping the mil rate, while of course, still raking in the same amount of cash and spending it foolishly.

The cost of education is another thing entirely. If you really break down the school budget there is a nauseating amount paid for administration (just like in health care). While increasing energy costs do affect the overall cost, it is mainly the upwardly spiraling cost of special education that is bulging the education budget. As an example of the administrative B.S. that my taxes pay for, children will now get a report on their B.M.I. (body mass index) on their report cards - WTF? My taxes are paying to pinch fat kids' arms and then tell their fat parents that their kids are fat?!!! Turns out, cutting physical education and sitting in front of the TV with XBox 360 don't burn many calories. Grrrrr.

Back to work to pay for the nanny state.....

Originally Posted by SOREHOOF

A lot of these foreclosures are on 2nd homes that people don't want to dip into their savings or investments to save, or are waiting to see if our benevolent Govt. will throw them a bone. Of course some are primary homes of people who lost their jobs, and I have no problem with helping them out.

The houses I am looking at are primary residences
of mostly older people in a coastal city.
I would guess their 401K did not meet requirements
for longer ownership given the current climate.
This is kinda sad imo.

The high end houses in the same place are 2nd homes.
These will probably not be sold quickly. They are not
worth near as much as the banks think right now.
Guess they are holding out till things get better.

A very small survey of a big problem.
As mentioned earlier each area in the US
has its own little story.