•Housing Suffering Relapse Confronts Bernanke With Credit Still a Conundrum

[Mnphats]

Quote from lrm21:


Its the insane property taxes in many locations, the lack of affordable home insurance.

I couldn't agree more, well said.



This is exactly the reason I will forgo purchasing a new home for my expanding family. I will admit I live in a "low" property taxed state. However, 1000 dollars a month in taxes and insurance is crazy.

Ridiculously low interest rates coupled with decreasing home values it could be construed as good time buy. But any increase in interest rate would severely hurt this market. The wild card is the government perhaps more home buying incentives?

 

[ByLoSellHi]

Quote from Dr. Zhivodka:

Still crying in your beer?

Get over it already.

Crying?

I'm liquid and golden.

Your naivety on the alleged immunity of the Left Coast is going to be proven to be sorely mistaken.

As in pound you in the ass sore.

A certain someone I know watches 'Flipping Out,' and the main character reminds me of you, a lot.

He's said he lost a third of his money in land of fruits and nuts real estate, so we can all safely assume it's probably closer to 50% or 60%.

But, of course, you're completely immune and on top of the world.

All your property is ocean front and sandy beach in an alcove, right?

 

[trendy]

Quote from ByLoSellHi:


Crucial Extension

A number of Washington-based organizations -- the National Association of Home Builders, the National Association of Realtors and the Mortgage Bankers Association -- say an extension of the buyer’s tax credit is also crucial.

Lawrence Yun, chief economist of the realtors’ group, estimates that about 350,000 home sales through August were directly attributable to the tax credit of up to $8,000 for first-time buyers.

Treasury Secretary Timothy Geithner, 48, called signs of stabilization in the U.S. housing market “very encouraging” and told reporters on Sept. 17 that the Obama administration will take a “careful look” at extending the credit.

Congress may not pass an extension; the chances “seem slim,” said Mark Calabria, director of financial-regulation studies at the Cato Institute in Washington and a former staffer on the Senate Banking Committee. Public opposition to increasing the federal budget deficit is high, and there’s little appetite on Capitol Hill for finding spending cuts to offset the cost of the tax credit, he said.

Stop the insanity! For each additional house that is purchased as a direct result of the $8,000 tax credit, it costs the American taxpayers somewhere between $41,000 and $96,000.

...According to NAR, a maximum of 350,000 additional homes were sold because of the credit. Both organizations say that a total of 1.8 million homes have been sold where the buyers qualify for the credit. So, the calculation is 1.8 million x $8,000 for a total cost of $14.4 billion, so far, for the entire program. If the NAR is correct, we must divide by 350,000, to get to the cost of each home sold. The calculation results in a conclusion that our government has bought each extra house for $41,142.86 per home. If NAHB is correct, and they have the better record of accuracy in these things, we divide by 150,000 extra houses. That means that the government is buying each extra home for $96,000.

http://seekingalpha.com/instablog/3...dit-may-cost-government-up-to-96-000-per-home

 

[zdreg]

Quote from lrm21:

I don't buy this either. Yes he is helicopter Ben but

I think the guy had two choices.

Let bank runs occur credit markets collapse, and the let god sort em out.

Our backstop the crisis like the FED charter says they are supposed to.

I will give him another six months to see how the wind down occurs.

For the most part the QE has been very tepid.

I was expecting much worse.

you make the typical response to the crisis. banks are too big too fail. the derivatives mess can be unwound without major dislocations. both are assumptions and not facts.
the key is that people like you and helicopter bernanke have an underlying assumption that inflation will bail us out of this financial mess or inflation will create a new financial order more to your liking. to say with the growth of the money supply and deficits that QE has been tepid says u believe inflation and debasement of the currency is the solution. it didn't work in south america and it won't work in the US and UK.

 

[Cache Landing]

Quote from Mnphats:

I couldn't agree more, well said.



This is exactly the reason I will forgo purchasing a new home for my expanding family. I will admit I live in a "low" property taxed state. However, 1000 dollars a month in taxes and insurance is crazy.

You're out of your mind if you think that you live in a low property taxed state. $1,000/month in taxes and insurance will get you into a 15,000s.f. ultra-luxury home on 5 acres of property in my state.

If that is your situation, then paying $1,000/month wouldn't seem ridiculous to you.

 

[ByLoSellHi]

Kentucky, Tennessee & North Carolina are some of the low property tax states I'm aware of.

I remember talking to a broker in North Carolina last year who was pushing hard to sell a project for a bank and he told me that taxes on a $218,000 single family home were about $800 per year if you were under 60 and about $600 per year if you were over 60.

I called the local assessor and treasurer to verify this, and sure enough, he was telling the truth.

In many states, taxes on such a house would run $2,000 to $4,000.

Taxes on a nice home in Tennessee (I forgot what part) on a 40 acre parcel that a friend of a friend owns are less than $400 per year.

I'm not sure if it's because he's classified as agri, even though he's not a farmer and there are no true farms in the area - just a lot of large homes on large lots.

 

[Mnphats]

Quote from Cache Landing:

You're out of your mind if you think that you live in a low property taxed state. $1,000/month in taxes and insurance will get you into a 15,000s.f. ultra-luxury home on 5 acres of property in my state.

If that is your situation, then paying $1,000/month wouldn't seem ridiculous to you.

I realize property taxes vary wildly from state to state and even from county to county. In my county its a about 2% of the value of the home.

I want to move to your state.

 

[Mnphats]

Quote from ByLoSellHi:

Kentucky, Tennessee & North Carolina are some of the low property tax states I'm aware of.

I remember talking to a broker in North Carolina last year who was pushing hard to sell a project for a bank and he told me that taxes on a $218,000 single family home were about $800 per year if you were under 60 and about $600 per year if you were over 60.

I called the local assessor and treasurer to verify this, and sure enough, he was telling the truth.

In many states, taxes on such a house would run $2,000 to $4,000.

Taxes on a nice home in Tennessee (I forgot what part) on a 40 acre parcel that a friend of a friend owns are less than $400 per year.

I'm not sure if it's because he's classified as agri, even though he's not a farmer and there are no true farms in the area - just a lot of large homes on large lots.

Wow thats cheap. How about NY, CA, or FL whats their property taxes like?

 

[Cache Landing]

Quote from Mnphats:

I realize property taxes vary wildly from state to state and even from county to county. In my county its a about 2% of the value of the home.

I want to move to your state.

I'm in UT. Our taxes are 1% of 1/2 of the assessed value of the home. IT is a stupid way to do it. I don't know why they don't just say 0.5% of the value.

 

[ByLoSellHi]

Quote from Mnphats:

Wow thats cheap. How about NY, CA, or FL whats their property taxes like?

CA is less than most expect, NY is expensive in many parts, Florida is also high...

(New Jersey is insane)