The Mother of all Housing crises!

[maui1]

Then there's the fact (seldom brought up) that you have locked in a payment for a place to live for 30 years.


i wish that were true.......with insurance costs and property taxes, what you thought was a fixed payment, has not been the case. in florida, with your house value falling, you monthly payment (w/tax & ins) keeps going up, even with a fixed rate.

i agree with your take, but i just wish the gov't would stop pushing the public in one direction or another )housing, stocks, green energy, 1st, because they have no better idea than the man on the corner, and 2nd, when they do, they put the tax payer on the hook for them being wrong, and they indirectly cause a bubble and then a bursting bubble.

[fairlycrazy23]

property taxes are sometimes/usually? based on the 'price' of a property, I wonder how many localities have started dropping property taxes since the housing crash.

[floridayankee]

Jun 15, 2011 8:42:39 GMT -5 fairlycrazy23 said:

property taxes are sometimes/usually? based on the 'price' of a property, I wonder how many localities have started dropping property taxes since the housing crash.

A lot of localities have a homestead exemption. Here in FL, we get a deduction for resident homeowners as well as a 3% valuation increase cap. During the run-up, longtime homeowners only saw small tax increases because the caps kept their valuations well below where they should have been (we bought in '05 which resets the valuation - taxes went from $1.4k to $3.2k).

Believe it or not, there are still some longtime homeowners with valuations below where they should be with the caps in place. Due to our reset so soon before the crash, our taxes have been decreasing since. This year we were back down to the $1.6k range in taxes.

[shelby]

"My question would be (& I don't know the answer) just how much did prices increase for the 10 to 15 year periods before the bubble popped in both of these time periods? To me that would be very important & pertinent."

It depends on the area I know some of the super bubbly areas increased 2 or 3 times in value in a short period like 5 years. I think the housing crisis as I'm sure most will agree is not that prices are falling we need sane and affordable mortgages for people to live in not speculate on. The crisis was the fact that they skyrosketed in price based on absolutely nothing but speculation. To reset the clock on home prices will create more long term stability but will suck for a lot of people who were not using rationale during the bubble years.

[maui1]

taxes went from $1.4k to $3.2k) in 4 years[/i]


ever wonder where all that money went? it did not take one year, in the down turn, for local fl. gov'ts to start crying about the loss of property tax revenue.

fyi..my taxes went up these last 3 years, because i was so much under the "fair eval', so there was room for my taxes to increase in value, even though my property value was going down.

this year, i see a decrease from last years amount, but not from the 2007 amount.

[floridayankee]

Jun 15, 2011 12:17:08 GMT -5 @maui1 said:

ever wonder where all that money went?

We are a government "of the people", and just like the people...they pissed it away it instead of saving it for the eventual rainy day.

it did not take one year, in the down turn, for local fl. gov'ts to start crying about the loss of property tax revenue.

Like a bunch of addicted crack whores. As time marched on, they needed more and more to get their fix.

fyi..my taxes went up these last 3 years, because i was so much under the "fair eval', so there was room for my taxes to increase in value, even though my property value was going down.

We bought at nearly the worst time possible (yeah, my timing sucks)...closed in early June 2005. At least I was able to see the crash coming and refinance out of our ARM (10yr fixed) into a 30 year fixed before we went upside-down.

[maui1]

i paid cash, in 2002, but my house today, has less value than it did then. i have a credit line and it was lowered, and the bank told me what my house was worth, to support the reduction.

florida has been hit bad, like a few other states, and i don't see an end soon.

i don't like what is happening now, but i really fear the future.

[bubblyandblue]

You went upside down because speculators (TBTF) bubbled the market with promises of "you can't lose" while they shorted the system. These speculators stole your wealth.

[floridayankee]

Jun 15, 2011 15:03:27 GMT -5 @maui1 said:

i paid cash, in 2002, but my house today, has less value than it did then. i have a credit line and it was lowered, and the bank told me what my house was worth, to support the reduction.

florida has been hit bad, like a few other states, and i don't see an end soon.

i don't like what is happening now, but i really fear the future.

Based off the sale price of the house next door, I'm around $25k upside-down.

It actually sold for $20k+- more than I figured it would have too.

[floridayankee]

Jun 15, 2011 15:06:34 GMT -5 @bubblyandblue said:

You went upside down because speculators (TBTF) bubbled the market with promises of "you can't lose" while they shorted the system. These speculators stole your wealth.

Easy come, easy go...eh?

While it is an asset, I've never really thought of my house as an investment. At least not in the same sense as I view my 401k/IRA type investments anyway. It's our home, not an atm. The only reason I'll be selling it is to move somewhere else, not to "cash out".

Of course, if someone were to offer me $1 million for the property today, I'd have to seriously consider them nuts and accept their offer.

[Angel!]

Jun 15, 2011 8:42:39 GMT -5 fairlycrazy23 said:

property taxes are sometimes/usually? based on the 'price' of a property, I wonder how many localities have started dropping property taxes since the housing crash.

I know my property taxes have dropped each of the last three years. Less than a $50 drop total, but when you start at $650/yr you don't have far to drop.

Based off the sale price of the house next door, I'm around $25k upside-down.

Based on what the guy flipping the house next door to me is trying to sell it for, I have about 30K in equity. Of course the guy is a dumbass if he thinks he will get even 75% of what he is asking. I actually am probably 25K underwater.