Less than 20% fall in home prices will destroy the banking system?

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Im sorry you dont know anything about this area, thats your own fault.

Read your own quote again.

Do you see anything that says property gets re-assesed for taxes year after year after year?

NO... thanks for proving me right, again.

You can find it hard to believe all you want, it doesnt change the fact that you are simply wrong.


There are no holes in my scenario, its COMMON here, you are simply being ignorant.



Quote from volente_00:

I find that hard to believe.



"State law requires that the Assessor reappraise property value immediately upon a change of ownership or completion of new construction. The Assessor's Office must issue a supplemental assessment that reflects the difference between the new and prior assessed values. The difference in values is multiplied by the rate applicable to the date of the event and then prorated based on the number of months remaining in the fiscal year, ending June30th".


"The TAX RATE consists of the 1% tax rate, and voter approved bonded debt rate."


What is the voter approved bonded debt rate for san diego county ?








Is that the reason there is a state income tax ? You scenario is full of more holes than swiss cheese.
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Quote from Cygnus Atratus:

Apparently here in London its reasonable to buy a sh!++y studio flat for £170000 because we are going to have the Olympics ( a 2 week event) so prices are a bargain........

Quite a few RE agents have reported most sales going into sealed bids, where buyers try to outbid each other for a house, and has also included high demand for ex social welfare houses ! Sheesh.........l hope l am wrong but if something starts to look Zero Risk........hmm, its time to run for the hills:)
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Cygnus, is this a London proper issue, or have these insane prices crept into the outlying areas, as well?

I have read about the housing appreciation in London with amazement. It is my understanding that London is now the most expensive real estate market in the world.

Also, do you think that the UK can maintain its living standards at their current rate if financial markets suffer a steep and long slump?

Thanks.
 
Quote from traderdragon2:


Do you see anything that says property gets re-assesed for taxes year after year after year?
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I guess I am just ignorant but tell me what this means straight from the damn county website ?



"Question - Can my property taxes change from year to year?


Answer - Yes. Proposition 13 allows for an increase of up to 2% of property value. Also, the TAX RATE in your area can increase as new bonds are added or decrease as existing bonds are paid off. Special Assessments can also cause an increase or decrease as they are added or deleted."



http://www.co.san-diego.ca.us/pts/faq.html#q10


Would you like SWISS CHEESE with that WHINE ?
 
Hi/lo,

What you listed is pretty much standard for "custom homes".

I know what your cost are. (Same as ours, but we have water/sewer and not tanks.). And we do not pay "City" tax and there are no Building Permits needed and all that jazz.

Texas is the last man standing in the fall of the domino's. I belive the south west region will not only weather the storm but we will make $$$$$ while the rest of the country comes to a stop.

Commerical Real Estate in the City is booming, Microsoft, and now Disney. I can't really speak about what we are doing along these lines as Commerical Real Estate Plays are Proprietary and require NDAs. Resident Real Estate does not require NDAs and a simple CCA (cost comparitive anyl.). will tell you what building cost are and if your price per sq ft is in line. I would imagine your profits are the same or close to all the builders in the area.

So, what really counts is how much inventory you have to carry with interest and your absorbition rate per quarter.


E
 
ERM. I am checking this thread as I just got back from dinner, etc.

We are on city sewer/water grid here.

We have fully excavated basements, which I don't believe is common in Texas.

I can't believe you don't need permits there. Permitting is a huge pain in the arse and expense here.

We are using mostly brick on mid range and high end, but use vinyl or James Hardie (recently) on lower end residential product, and masonry or Dryvit on office/commercial applications.

I agree with you about Texas - especially Austin and Houston. You know your market better than I, but I do know that many Louisiana residents moved to Texas, and that you've also seen a mini tech boom. Plus, prices never got out of hand.

In Michigan, we actually led the boom, preceding the rest of the country by a good 2 years. Our boom occurred from 1999 to 2002, and then fell off a cliff since then, due to the automotive curse.

I also develop commercial, but again, the market is really slow here for that, too.

If I want to get back in a full swing crush development mode, it would have to be by setting up shop in another state, and we all know how difficult that is, with not being plugged into the local network.
 
I heard there can't be much appreciation in Texas because of vast space available to build more homes, and something about property tax that proves to be disadvantage to home owners.
 
Quote from Adobian:

I heard there can't be much appreciation in Texas because of vast space available to build more homes, and something about property tax that proves to be disadvantage to home owners.
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The abundance of land has a lot to do with it. A lot of the cities are spaced so far apart that it allows for annexation and the new trend at least in my area is to build as close to the country as you can on bigger lots while still maintaining city services. My property tax runs about 2% including school tax. If you live outside of the city limits the taxes get pretty cheap.
 
Quote from ByLoSellHi:

ERM. I am checking this thread as I just got back from dinner, etc.

We are on city sewer/water grid here.

We have fully excavated basements, which I don't believe is common in Texas.

I can't believe you don't need permits there. Permitting is a huge pain in the arse and expense here.

We are using mostly brick on mid range and high end, but use vinyl or James Hardie (recently) on lower end residential product, and masonry or Dryvit on office/commercial applications.

I agree with you about Texas - especially Austin and Houston. You know your market better than I, but I do know that many Louisiana residents moved to Texas, and that you've also seen a mini tech boom. Plus, prices never got out of hand.

In Michigan, we actually led the boom, preceding the rest of the country by a good 2 years. Our boom occurred from 1999 to 2002, and then fell off a cliff since then, due to the automotive curse.

I also develop commercial, but again, the market is really slow here for that, too.

If I want to get back in a full swing crush development mode, it would have to be by setting up shop in another state, and we all know how difficult that is, with not being plugged into the local network.
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Permits are required in city limits here. The last house I built was 350k and the permit was just under 2k.
 
Texas is the last man standing in the fall of the domino's. I belive the south west region will not only weather the storm but we will make $$$$$ while the rest of the country comes to a stop.
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Hasn't Texas seen a glut of money, new money, coming from people moving there because of affordability though?

So, theoretically and I believe actually, when prices in other places are going down, won't people will stop moving to Texas and stay where they are?

If the economy isn't bad and there are jobs elsewhere with the ability to buy homes at a price that's equal to or near what Texas prices are, wouldn't that slow growth in Texas and instead drag it down with the others?
 
TX/CA comps.
My Mother in law's house, right outside of Hayward CA is just a few ft shy in sq footage, of our house, and we live just north of Houston.
Her house last appraised, by a bank no less, for $680,000.00.

Our neighborhoods are quite similar.

Ours appraised, by a bank, for $85,000.00

So when home prices in CA come down 800%, they'll stop moving to TX.

I don't see that happening in this century, but I could be wrong.
 
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