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

[ByLoSellHi]

Quote from Matt24SPFL:

Question...

Ok, so, I should just wait this out and have a new house built when construction costs are lower in about 12-18 months??

If you're serious about building your own house, and it's to live in and not as an investment, there's no harm in building it now.

You don't need to time the housing market unless you're going to remain in your home for less than 7 or 8 years.

Otherwise, go for it. There are a LOT of hungry trades looking for work now.

Unless you're familiar with construction, you better have a COMPETENT General Contractor whom you TRUST completely, and you use an AIRTIGHT cost+ contract, with all monies paid from an escrow account as work progresses, in the form of construction draws.

If you don't do this methodically and perfectly, you will die the death of a thousand paper cuts in 'extras'.

 

[2ez]

Quote from universaltrader:

Isn't that normal?

Seems to be so, if they are looking for a reason to increase propert tax.

 

[krazykarl]

Quote from ByLoSellHi:

If you're serious about building your own house, and it's to live in and not as an investment, there's no harm in building it now.

You don't need to time the housing market unless you're going to remain in your home for less than 7 or 8 years.

Otherwise, go for it. There are a LOT of hungry trades looking for work now.

Unless you're familiar with construction, you better have a COMPETENT General Contractor whom you TRUST completely, and you use an AIRTIGHT cost+ contract, with all monies paid from an escrow account as work progresses, in the form of construction draws.

If you don't do this methodically and perfectly, you will die the death of a thousand paper cuts in 'extras'.

Take blsh's advice to heart - I was doing business with several construction companies in 04-05 and witnessed first-hand how they are able to get a new hummer every year. The above post should be made a sticky for people that want to build a home..

 

[jficquette]

Quote from blast19:

http://www.assessor.saccounty.net/general-information/real-property.html

There are perks to renting like being able to depreciate the property and expense fixups. Taxes might not be a huge issue.

Most property managers take 10%(for a really good one).

The depreciation reduces your basis and when you go sell you pay tax on it.

John

 

[traderdragon2]

The more you make up fantasy numbers, the more credibility you lose.

Property tax is only 1% here, and the tax is not on 600K, its on the original price of the home which is probably around 150K or less back when they bought it.

They dont reset taxes here, they stay at the purchase price.

Quote from volente_00:

Yes it is paid off, but tell me what taxes and insurance run on a 600k house out in SD ? They run about 3 % for both in TX and I know that is lower than SD. So he is renting it for 1700 a month and his cost NOT including vacancy, paying a leasing agent and paying for repairs are costing him at LEAST 1500 a month. Apreciation is one arguement, but his money is locked up in that house and he could be down 20% at any given time when the bubble pops out there ?

 

[NasdaqTrader]

Quote from traderdragon2:

The more you make up fantasy numbers, the more credibility you lose.

Property tax is only 1% here, and the tax is not on 600K, its on the original price of the home which is probably around 150K or less back when they bought it.

They dont reset taxes here, they stay at the purchase price.

So property taxes stay exactly the same and never go up or down in CA after you buy a home?

 

[blast19]

Quote from NasdaqTrader:

So property taxes stay exactly the same and never go up or down in CA after you buy a home?

2%/year

 

[volente_00]

Quote from 2ez:

Then why are they assessing values annually if the appreciation is slow and steady ?

So they don't screw theirself on the annual budget from tax revenue.

 

[volente_00]

Quote from traderdragon2:

The more you make up fantasy numbers, the more credibility you lose.

Property tax is only 1% here, and the tax is not on 600K, its on the original price of the home which is probably around 150K or less back when they bought it.

They dont reset taxes here, they stay at the purchase price.

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.

 

[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