Useful Links

jon-nyc · 06-06-2013, 05:59 AM

Quote:

Originally Posted by kmt1972

True. We have large townhouse which is attached to another unit on one side with a significant yard. If we were detached with the same size and yard I figured it would be worth about $950K. When my DW and I bought this back in 2007 we decided on utility versus resale value on the premise we would be here for a while and wanted a lower real estate tax bill. The real estate tax bill has shot up last couple of years since the phasing out of STAR for households of income over $500K. Arrrr.

We just bought in the Rivertowns, we move in a couple weeks. Taxes are indeed crazy. I retired this year so I should qualify for STAR in 2014.

tryan · 06-06-2013, 09:39 AM

FWIW I believe history will show the bottom is behind us. But we're no where near the 2005-2006 peak. Still 25% or so to go.

Speaking to my realtor/friend she said the demand is in the city ... prices are on the rise there. The 'burbs will only benefit when buyers are priced out of the city and "come up the highway". Probably another couple years before we begin to significantly lift.

KingB · 06-06-2013, 10:07 AM

Quote:

Originally Posted by kmt1972

True. We have large townhouse which is attached to another unit on one side with a significant yard. If we were detached with the same size and yard I figured it would be worth about $950K. When my DW and I bought this back in 2007 we decided on utility versus resale value on the premise we would be here for a while and wanted a lower real estate tax bill. The real estate tax bill has shot up last couple of years since the phasing out of STAR for households of income over $500K. Arrrr.

If I am making >500K, I wouldn't mind paying for my fair share of taxes.

KingB · 06-06-2013, 10:12 AM

Quote:

Originally Posted by Malcolm2

Not too concerned about property values one year to next. We own free and clear but never have seriously considered our house part of our portfolio or even net worth. Just a nice place to keep our stuff.

Have seen far too many friends treat their house as their primary retirement plan - big mistake in our view. With this latest market I'm sure many are updating their net worth spreadsheet with every uptick. Not interested in deceiving ourselves in that way.

+1.
Totally agree.

HFWR · 06-06-2013, 11:01 AM

Bought my "ranch" for $113k in 2000.

Gus. · 06-06-2013, 11:49 AM

Here's what our house appraised for since we bought it:

Original purchase in 2007: $560,000
Refinance 1 in 2009: $560,000
Refinance 2 in 2011: $530,000
Refinance 3 in 2012: $510,000
Refinance 4 in 2013: $600,000

I think the lower appraisals were too low but I didn't argue with them because we have enough equity that the appraisal doesn't matter.

bld999 · 06-06-2013, 12:45 PM

Quote:

Originally Posted by Gus.

Here's what our house appraised for since we bought it:

Original purchase in 2007: $560,000
Refinance 1 in 2009: $560,000
Refinance 2 in 2011: $530,000
Refinance 3 in 2012: $510,000
Refinance 4 in 2013: $600,000

I think the lower appraisals were too low but I didn't argue with them because we have enough equity that the appraisal doesn't matter.

Appraisers are stuck with comparative sales to establish valuation. They like to find representative examples within a mile radius of what they are appraising, too. If you're in an area with few or no sales, the appraisal may be fiction. Likely in this market, the sale price would be higher if in an urban area. Once fresh comps are available, appraisals will head up and may begin to overshoot.

Not directly related, but in my area of north Seattle, there is so little inventory, spec. builders who can get hold of lots are netting 70-80k per townhouse unit, about where things were in 2006...

Chuckanut · 06-06-2013, 01:58 PM

FWIW, I heard one person describe it as a 'sellers strike', thus causing a low inventory that is driving up prices.

jon-nyc · 06-06-2013, 07:32 PM

Quote:

Originally Posted by KingB

If I am making >500K, I wouldn't mind paying for my fair share of taxes.

I don't complain much myself.

But to put this in context - I just bought a 2400 sq ft house with 3 bedrooms, 2.5 baths. The property taxes are 26,800 a year. That's not a typo.

kmt1972 · 06-06-2013, 07:38 PM

Quote:

Originally Posted by jon-nyc

I don't complain much myself.

But to put this in context - I just bought a 2400 sq ft house with 3 bedrooms, 2.5 baths. The property taxes are 26,800 a year. That's not a typo.

Yep. SOP in Westchester. My is over $20K as well now that STAR is gone. Scarsdale is pretty high in terms of property taxes. Thank goodness I have a kid so I can recoup some of this by not having to send him to private school.

kmt1972 · 06-06-2013, 07:40 PM

Quote:

Originally Posted by KingB

If I am making >500K, I wouldn't mind paying for my fair share of taxes.

I hear you. In may ways it makes a lot of sense. It is my view, and my view only, but I feel my share of taxes should be zero. It might not be fair in many sense of the word but fairness is not a goal for me.

Gatordoc50 · 06-06-2013, 08:20 PM

I bought a bank owned property at auction on 2008 and the value still went down about 10% after that! I guess it's up about ten to twenty percent now.

polaris007us · 06-06-2013, 08:46 PM

My home value according to Zillow has rebounded to 1995 value when I bought it for $250K not including about $30K in improvements last 17 years

RenoJay · 06-06-2013, 08:58 PM

I'm WAAAAY under what I paid. I bought in Nevada in Dec. 2006 and paid $1.1 MM. Today home is worth about $750k, but that's a lot better than a year ago when it appraised at $625k. It'll be a long, slow slog back.

jollystomper · 06-06-2013, 09:24 PM

I haven't worried too much about our house value since we bought it in 1990 for $190K and have a longer term perspective. House values were flat in this area for most of the 90's, but since then it has greatly appreciated, and even at the lows a couple of years ago it was still valued at twice what we bought it for. It has gone higher since based on our recent refinance, but nowhere near the peak of the housing craze when it was valued at $700K (which we thought was insane).

Out of curiosity I looked up our previous home and was surprised to see it worth just slightly more than what we sold it for in 1990. Location, location, location...

KingB · 06-06-2013, 09:44 PM

Quote:

Originally Posted by kmt1972

I hear you. In may ways it makes a lot of sense. It is my view, and my view only, but I feel my share of taxes should be zero. It might not be fair in many sense of the word but fairness is not a goal for me.

So I take it that your spouse doesn't share your view and feeling regarding taxes. Just curious.

jclarksnakes · 06-07-2013, 06:59 AM

Could not answer because it asks about changes in VALUE. IMO the value of most real estate is very stable. The value of my house is exactly the same as when I bought it in 1984. Prices and tax assessments on the other hand have been seriously whipsawed over the last decade by fear and greed. Similar things happen in the stock market. Opinionated curmudgeon hat off I will play the game here: We live in a suburban 3/2 in Savannah GA. We bought it for 70K in 1984. Tax man gradually increased the assessment up to around 110K in 2000. After that it went up more rapidly to around 180K in 2008. It was down around 110K two years ago and is back up to 124K which is probably about what we could sell it for. We have several empty houses on our street. One next door the couple had job and financial problems and walked away from it. The bank has been criminally slow in moving forward with reselling it and does not maintain it. I take care of the lawn. One across the street the owner is in his 80s with health problems and has been out of the house in assisted living and nursing home for several years. Renters trashed the place and moved on. Owner has bad relationship skills and so his family does not seem to communicate with him or take care of the house. I take care of the yard of that one too. Other next door neighbor is a single mom with health problems so I take care of her yard also. Yard work is good exercise.