Take me down the path. How does your mind work on this one.
Home Values
- Thread starter 2forISU
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Take me down the path. How does your mind work on this one.
I don't get where all of the money comes from sometimes. New buyers in my neighborhood all seem to be 30/40 somethings with kids and garages full of high end luxury cars. My neighborhood (just a block outside of Mpls west boundary) is crazy eclectic with $1M plus homes to $250K homes with the average being $500k or so (I guess). The ones that move the slowest are the ones priced out at $400k or so, usually overpriced junk that sit until the agent convinces the owners that, "No, your house is not worth your asking price." Stuff between $200 - 300K get snatched up as teardowns by developers. Really nice ones in the $600-800K range sell in a matter of days, sometimes for more than asking. It's just wild real estate market here right now, seeing a little bit of everything from slow sells to bidding wars.
And, just so I don't feel left out, my tax appraisal just jumped by $52K for next year.
And, just so I don't feel left out, my tax appraisal just jumped by $52K for next year.
I agree that Prop 13 has made it too expensive for some to move within the SoCal market. A reset of your property tax could double or triple what you would currently be paying.
As a prior CA homeowner I loved it. My home wasn't treated as a slush fund for the government (looking at you, Illinois) and it brought greater payment certainty.
I don't get where all of the money comes from sometimes. New buyers in my neighborhood all seem to be 30/40 somethings with kids and garages full of high end luxury cars. My neighborhood (just a block outside of Mpls west boundary) is crazy eclectic with $1M plus homes to $250K homes with the average being $500k or so (I guess). The ones that move the slowest are the ones priced out at $400k or so, usually overpriced junk that sit until the agent convinces the owners that, "No, your house is not worth your asking price." Stuff between $200 - 300K get snatched up as teardowns by developers. Really nice ones in the $600-800K range sell in a matter of days, sometimes for more than asking. It's just wild real estate market here right now, seeing a little bit of everything from slow sells to bidding wars.
And, just so I don't feel left out, my tax appraisal just jumped by $52K for next year.
Appearance of being wealthy =/= actual wealth in most cases. It’s a status thing for a lot of people though.
Yep. Played golf league with a guy whose wife owns a house cleaning business in the metro; said I wouldn't believe how many $400k + homes are half empty.
I agree that the idea was decent at the time. But they didn't really understand and think about the long-term effects. Or maybe they did and understood their property values would likely soar and keep their taxes low. I think capping the taxes one pays to a MAX % of the value (I would say 2% at the highest) would be better than the Max % increase each year.
And these are the idiots we're letting tell us that our shorts are out of style.
Before the bubble broke in 2007, there were many houses in WDM and environs that had no furniture in them - just the $300-400K house and the 2 big, brand-new SUVs in the driveway. Apparently few lessons were learned in that fiasco.
People tend to race into and overreach into bubbles. Just a human tendency apparently. Look at the cyrpto bubble. The faster prices are going up the more people who apparently get greedy and think this is their path to joining the "rich".
Yes, this was a tax revolt and California proposition led by Howard Jarvis, in the years just before Reagan became president. It predicted, in a way, Reagan's victory in 1980.
Besides restrictive zoning, rising housing prices then would also have been a result of monetary inflation on the part of the Fed. If I am not mistaken, in Iowa at that time, they developed a formula intended to keep farmland from increasing so much for property tax purposes -- which was increasing rapidly then -- maybe based on some productively index, or such. And sometime after that, Iowa somehow also tied residential property to agricultural productivity, to, along with farmland, limit increases in taxable value of residential property. Commercial property, however, continued to be taxed at 100 percent.
When the Fed prints money, keep in mind that it isn't as if all prices uniformly increase at the same rate -- say -- as if a money fairy puts an additional 10 percent of what everyone already has under their pillow overnight.
The winners are those who receive the new money first -- those closest to the money spigots. A lot of money has obviously gone into the tech and financial service sectors in recent years. People in Washington, D.C. also benefit a lot from this aspect.
I'm always shocked at the level of borrowing I am eligible based on my one income. It's kind of the root of the problem.
We were looking for a house in the Twin Cities about a dozen years ago and we saw one that clearly hadn't been lived in for years. It had trees growing out of the rain gutters. I called the number just out of curiosity to see what they were asking and they wanted $750,000 for a house that clearly was intended to tear down and build on the lot. Probably because it was a short block from a golf course and McMansions were starting to take over the neighborhood but a McMansion would have had a devil of a time elegantly resting on that size of a lot.
The property tax market in Chicago is anything but flat...so says my brother who complains about the constant rise in taxes there.
This is what I don't understand. Our house is under 200k and we fully find Roth IRAs, put money into a college fund, and still have money left over for his/hers strippers. What is the point of owning a gigantic home if you can't satisfy the other Financial requirements in your life?
I’ve leveled my share of criticism at some of Dave Ramsey’s stuff, but I do love this quote from him:
“We buy things we don’t need with money we don’t have to impress people we don’t like.”
Also if you stripped for your wife yourself you could save even more money for college, etc.
Yeah, I wouldn't let them tell us how much they'd give us when we bought our current house. The wife would have seen that as a green light to spend that much.
Would you really, we've got plenty of giant houses. Like this
https://www.zillow.com/homes/for_sa....375107,40.791459,-93.254013_rect/9_zm/0_mmm/
