Home Values

Discussion in 'Real Estate' started by 2forISU, Apr 12, 2018.

  1. BeachCyclone

    BeachCyclone Member

    Jan 22, 2012
    36
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    Manhattan Beach, CA
    Ratings:
    +25 / 0 / -0
    I can’t speak for others, but my property tax would increase by $10-15k annually were my wife and I to purchase a house at the same price as our current home’s actual value.

    If we ever move, we’re leaving for good.
     
  2. mtowncyclone13

    mtowncyclone13 Well-Known Member
    SuperFanatic SuperFanatic T2

    Oct 10, 2012
    19,893
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    grundy center
    Ratings:
    +9,280 / 549 / -23
    Studies have shown this exact thing happens.

    Also ITT: I want high property value when I sell but low when I pay taxes. Which is it?
     
  3. mkadl

    mkadl Well-Known Member

    Mar 17, 2006
    1,354
    106
    63
    Male
    Cornfield
    Ratings:
    +231 / 5 / -0
    The Schools, Cities and Counties as well as a handful of other property taxing entities set your property tax DOLLARS collected. The legislature just sets weird rollbacks and formulas for political gain, then they can say the cut taxes. When in truth, it takes "X" amount of dollars to operate one of these property taxing entities. Lets put it this way, If everyone property tax was based off of 100% value levy rates would drop significantly, except agland, that value is determined on a formula that sets the value from commodity prices, the productivity of that 40 acre piece of land ( what the soil type in that 40 acres is actually able to produce) and raw agland values.

    The trouble is, this information is 2 years old when the tax bills come out in August. If your house is destroyed by a catastrophe and you rebuild somewhere else, until the 2 years passes, you wont avoid paying taxes on theat house that is gone. If farmers have a profitable year, they dont have to pay for higher land evaluations until 2 years later. Then farm income could be way down.

    I think it is too complex.
     
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  4. Clone83

    Clone83 Well-Known Member

    Mar 25, 2006
    4,691
    478
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    Ratings:
    +736 / 9 / -6
    #104 Clone83, Apr 22, 2018
    Last edited: Apr 22, 2018
    I do not follow such things closely, or at all, but I found it interesting what comes up with a simple Google search on "proposition 13 and house prices".

    There is a lot more there, that I have not included here.

    But at the top were fairly recent articles from the San Diego newspaper about possible revisions to Proposition 13, intended to increase turnover -- by allowing some kind of rollover basis for property tax purposes, so people can sell their house and move but not give up all the benefits of Proposition 13 -- modeled (IIRC) on special rules currently in place for people 55 and older. One is a Q&A about whether this specific proposal will result in higher prices. A name I recognized is local university economist James Hamilton, who has long had his own economics blog.

    I was mostly interested, though, that there are recent discussions in the news (via that google search) about Prop 13 and twojman's and mtown's and argent's point -- that is, whether/that Prop 13 itself causes higher prices. But I have not linked those discussions here.

    Below are links to the articles about the proposed revisions to Prop 13, and one to James Hamilton's blog:

    Article about the proposal (7-13-17):
    Prop. 13 property tax reform could boost housing affordability, experts say
    http://www.sandiegouniontribune.com/business/growth-development/sd-fi-prop13-story.html

    Subsequent article with the Q&A (7-21-17):
    Will Prop. 13 changes make home prices go up?
    http://www.sandiegouniontribune.com/business/economy/sd-fi-econometer-prop13-htmlstory.html

    Econbrowser (James Hamilton's) blog:
    http://econbrowser.com/
     
  5. Cyclone.TV

    Cyclone.TV Well-Known Member

    Sep 3, 2016
    3,750
    470
    83
    Ratings:
    +2,394 / 231 / -54
    Where’s Mark when we need him?
     
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  6. Clone83

    Clone83 Well-Known Member

    Mar 25, 2006
    4,691
    478
    83
    Ratings:
    +736 / 9 / -6
  7. ISUCyclones2015

    ISUCyclones2015 Well-Known Member

    Dec 19, 2010
    10,279
    1,252
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    Dallas, TX
    Ratings:
    +3,576 / 271 / -26
    This one always gets me arguing when talking with family. They keep telling me to buy a house but I travel literally every week. 200k miles a year. I'm home 8 days a month on average. Throw in the fact Texas has high real estate taxes, **** no I ain't buying right now.

    I'll stick with my $900/month rent with free internet and cable. Plus my electricity is free nights and weekends. I still feel like I'm overpaying due to my situation. (It used to be a lot lower until my roommate moved out and I had to get a 1 bedroom).

    Just property taxes on homes I was looking at was $500+ a month ignoring the mortgage.

    Nah.... I'll stick to renting for now and just maxing out all my retirement stuff. Even doing some mega backdoor IRA this last year
     
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  8. Cyclone.TV

    Cyclone.TV Well-Known Member

    Sep 3, 2016
    3,750
    470
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    +2,394 / 231 / -54
    You’re still better off buying, strictly talking about $$. Maxing our retirement is fine but you are throwing $900+ away each month.
     
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  9. Cyched

    Cyched Minister of Culture
    SuperFanatic SuperFanatic T2

    May 8, 2009
    15,295
    5,072
    113
    Ankeny
    Ratings:
    +24,120 / 376 / -1
    The answer to the rent vs. buy question is always, "it depends." Reading 2015's post suggests that renting is the best situation for him at this point in his life, and he understands it.

    I've never really understand the "throwing away money" line. True, he's not building equity in a home, but he's still paying for a roof over his head. While avoiding additional taxes and homeowner expenses.
     
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  10. ISUCyclones2015

    ISUCyclones2015 Well-Known Member

    Dec 19, 2010
    10,279
    1,252
    113
    Dallas, TX
    Ratings:
    +3,576 / 271 / -26
    Basically yes. Plus I don't have someone who would be living in the home with me.

    I am gone between 4-10 consecutive days usually. So what if something happened in my home unexpectedly? A pipe burst, roof leaked, tree fell on house, gas leak etc. I am at the mercy of fate at that point. Renting these things can still happen but it's not my obligation to try and remedy these things if they do happen. That's invaluable to me at this point in my life.
     
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  11. GoCy

    GoCy Member

    Apr 11, 2006
    184
    13
    18
    Ratings:
    +19 / 0 / -0
    #111 GoCy, Apr 22, 2018
    Last edited: Apr 23, 2018
    I spend over $5,000/yr on property taxes. Add in interest payments, insurance, utilities and maintenance, and $900/mo. is damn cheap. For me, choosing to own a home is more about lifestyle choices.
     
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  12. Cyclone.TV

    Cyclone.TV Well-Known Member

    Sep 3, 2016
    3,750
    470
    83
    Ratings:
    +2,394 / 231 / -54
    Talking about strictly money, buying is better than renting. If you can’t, it’s understandable. If you don’t want to, it’s understandaable.
     
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  13. Cyclone.TV

    Cyclone.TV Well-Known Member

    Sep 3, 2016
    3,750
    470
    83
    Ratings:
    +2,394 / 231 / -54
    Insurance.
     
  14. Rabbuk

    Rabbuk Well-Known Member

    Mar 1, 2011
    37,995
    3,357
    113
    Ratings:
    +21,515 / 1,095 / -61
    I haven't bought because I don't spend enough time at my place, I also don't want to be on the hook for shoveling and lawn care. Plus it's cheap as hell to rent in crapids
     
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  15. ISUCyclones2015

    ISUCyclones2015 Well-Known Member

    Dec 19, 2010
    10,279
    1,252
    113
    Dallas, TX
    Ratings:
    +3,576 / 271 / -26
    Obviously but let's say pipe bursts Monday the 23rd and I don't get home until Wednesday the 2nd and I have four days to get all my ducks in a row because I leave Sunday the 6th for my next assignment.

    Ignoring the fact that 10 days of a pipe burst is catastrophically more difficult to deal with than a day or two. You think you can get everything done in 4 days?

    I've done calculations and renting is better for me financially wise when it crosses the $1300ish range. That's straight up rent vs mortgage/taxes/insurance building equity in a house. Ignoring all the other costs like lawn care, maintenance, etc.

    Also ignoring the benefits of compound interest of $400/month+ I can save extra in that scenario.
     
  16. Cyclone.TV

    Cyclone.TV Well-Known Member

    Sep 3, 2016
    3,750
    470
    83
    Ratings:
    +2,394 / 231 / -54
    Well I also don’t think a pipe bursting is something to worry about much, either. Like I said, it’s understandable if you don’t want to and it makes sense in your situation, but buying is always the better $$ way to go.
     
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  17. clonedude

    clonedude Well-Known Member

    Apr 16, 2006
    19,504
    2,035
    113
    Male
    Ratings:
    +13,423 / 1,419 / -102
    You sure about that.
     
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  18. Cyclone.TV

    Cyclone.TV Well-Known Member

    Sep 3, 2016
    3,750
    470
    83
    Ratings:
    +2,394 / 231 / -54
    Sure
     
  19. KnappShack

    KnappShack Well-Known Member

    May 26, 2008
    10,263
    2,019
    113
    Parts Unknown
    Ratings:
    +9,698 / 332 / -15
    I bought my recent home in 2005. By 2009 I was a couple hundred thousand upside down and scraping to keep the place.

    A good case can be made that buying wasn't a fantastic decision.

    Always isn't always the right answer
     
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  20. FinalFourCy

    FinalFourCy Well-Known Member

    Mar 5, 2017
    9,357
    1,293
    113
    Ratings:
    +9,159 / 836 / -15
    Lol
     
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