Posted on 06/23/2005 8:33:46 AM PDT by ex-Texan
Soon that sucking sound will be so loud it will be deafening.
All the people tied into adjustable rate mortgages or interest only loans will be screaming the next time Greenspan decides to cool inflation by adjusting interest rate upward.
I love living in Ohio where real estate prices historically climb an anemic 3-4% annually...
What do people THINK is gonna happen when they buy a 1200 square foot sh*tbox in San Fransicso for 600 grand?
The obvious routinely escapes many in the masses fixated on greed and long time warm-fuzzies.
Actually, my mortgage company did a purchase in Pacifica for $660,000 that was 1145 square feet...it was a dump though-looked like a big square booger.
It's not just California! I purchased my home outside of Houston in 1992 for $188,000 and it's a fairly modest home compared to many in the area.
Today the appraisal folks have it valued at $352,000! My taxes alone are almost $1,000 per month all because of the home re-finance situation. What people did not realize was that the tax assessor gets to revalue your property based on the appraisal you get in order to refinance. They value your property at the APPRAISAL amount NOT for the amount of the loan you take out. When your neighbor refinances you become subject to increases in your appraised valuation as well. I've lost several neighbors because they could not afford to stay in their homes. I'm only in mine because I protest my valuation every year, but I will not be able to stay here much longer at the current rate of increase of 10% per year.
"You won't find 1,200 sq ft in S.F. that cheap."
I considered moving out there, back in 99 before the bust. Interviewed in late summer, and was actually sitting in the airport waiting for my flight back east when the bubble started to burst. Never seen so many long faces in my life, looking at the tickers going across the bottom of the tv screens in the lounge. I looked at houses, out a ways since I'm something of a country guy... found a crappy little ranch, 1200 square feet, needed every repair imaginable but was the only thing I could even envision myself living in that I could possibly come close to paying for. It was $325K. Partial view of the Pacific, in Half Moon Bay. Any idea what this would price out at, today? More than double that, I'm sure. I'm also sure that I'd have been out of a job in very short order, had I accepted, so any appreciation would be water under the bridge in any case.
I have a friend who got caught by a 'short term fluctuation' in Los Angeles commercial real estate. The bottom fell out of the market in the 1990's. Soon his office building was 'upside down' in a falling market. Then he lost tenants who decided to move away from the problem and his vacancy rate jumped from 5% to 15% and then to 25%. It took him ten years to get back to square one. In the meantime, many other commercial property owners were forced into foreclosure because they could not pay their debt. My friend was paying out of his pocket each month to hold onto his great 'location-location' property.
oh, I don't know. I was born in Ohio. Whole family is from Ohio. And I'll take a catbox in San Francisco over the Ritz in Springfield Ohio.
I think you'll enjoy this thread.....
Yet another doom and gloom RE article? This is laughable.
I can see mortgage-atoriums coming for those poor unfortunate souls who didn't sell fast enough.
BUMP
All we do is close and fund the loan. Doesn't matter where the house is-we have a nationwide HUD license. The buyer lived and worked in California.
Property taxes are the worst kind of tax anyway...what is it-you're RENTING your property from the government, essentially...
I'm immediately suspect of any person who uses the word "always" or "never" when discussing economics, generally and investments, specifically. BTW, how does real estate compare to the S & P 500 since 1920?
It's not just California! I purchased my home outside of Houston in 1992 for $188,000 and it's a fairly modest home compared to many in the area.
Today the appraisal folks have it valued at $352,000!
What's really going to shock everybody is that when the collapse comes, the Houston house is going to go to $130K or less while the San Francisco house will hardly move at all. The reason? Asian and European money flowing into desirably located (and exchange-rate cheap) US real estate. Those folks don't want to live in Houston. ;)
Sounds like another case of taxpayers taking another pocketbook hit from local and state governments needing more tax dollars by raising property taxes based on hyped up appraisals.
I just paid my elderly mother's phone bill. Her use was $19.00 --- her taxes $9.91 (3 of 5 being itemized federal taxes).
Grrrr
Nah. It's DISGUISHED as a RE thread. Actually, it's a CA bashing thread.
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