D. All of the above.Quote from toc:
What about those $10 to 15K dumps going on auction in Michigan and nY states. Are they just a shell i.e. no plumbing or electricity or they are in crime infested areas i.e. slums that no one dares to go even in broad daylight.
Some home were being sold for $1. What is the story behind those.
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Half Price House Sale
- Thread starter Brandonf
- Start date
You also need to know if the HOA is solvent. In many condo associations (single family included) the HOA is bankrupt because of all the empty units. Depending on the condo documents, either a developer (who is now bankrupt) or the surviving owners have to make up shortages. Special asessments are happening like mad because of all the empty units.
Quote from mgookin:
You also need to know if the HOA is solvent. In many condo associations (single family included) the HOA is bankrupt because of all the empty units. Depending on the condo documents, either a developer (who is now bankrupt) or the surviving owners have to make up shortages. Special asessments are happening like mad because of all the empty units.
People on Brickell Boulevard are getting reamed for this very reason - their HOA rates were already sky high, and now, there are lots of units going dark.
I can tell you that Florida has serious imbalances and property prices need to fall further
1) Even at this level, Property taxes are so out of whack because of the Homestead exemption. Property taxes on primary residences are adjusted one time at the sale after that they are capped at 3% annual rise. Which means the tax burdens will continue to be pushed onto new home owners. I pay $5,000/yr in property taxes bought my house 4 years ago. My neighbor paid $7,000 last year because its a second home for investments so he has no protection. My other neighbor pay $2,800 because he's been in house for 20 years. Same house totally arbitrary taxation
That's how fucked up the system is. And good luck getting the government to lower property taxes because your property is worth less.
2) Insurance costs are another major expense because there are no insurers left in the state.
3) expect to pay about $10 - 15k per year on insurance and taxes on a 2,000 sqft home. Add on utilities, normal maintenance and repair, and HOA and your average 300k home in south florida has a carrying cost of 20k/yr before P&I
You got people here making 40k a year and they were stupid enough to buy a house. How they are still around I don't know.
The best part is the politicians think the problem is that people cant get loans. The problem is they cant afford the taxes and insurance.
As result the market is terrible for investors and for homeowners. Prices need to fall to 1998 levels IMHO in Florida to be inline with the average floridian.
1) Even at this level, Property taxes are so out of whack because of the Homestead exemption. Property taxes on primary residences are adjusted one time at the sale after that they are capped at 3% annual rise. Which means the tax burdens will continue to be pushed onto new home owners. I pay $5,000/yr in property taxes bought my house 4 years ago. My neighbor paid $7,000 last year because its a second home for investments so he has no protection. My other neighbor pay $2,800 because he's been in house for 20 years. Same house totally arbitrary taxation
That's how fucked up the system is. And good luck getting the government to lower property taxes because your property is worth less.
2) Insurance costs are another major expense because there are no insurers left in the state.
3) expect to pay about $10 - 15k per year on insurance and taxes on a 2,000 sqft home. Add on utilities, normal maintenance and repair, and HOA and your average 300k home in south florida has a carrying cost of 20k/yr before P&I
You got people here making 40k a year and they were stupid enough to buy a house. How they are still around I don't know.
The best part is the politicians think the problem is that people cant get loans. The problem is they cant afford the taxes and insurance.
As result the market is terrible for investors and for homeowners. Prices need to fall to 1998 levels IMHO in Florida to be inline with the average floridian.