the people who bought recently, or refinanced and burned up equity (me) – should get out now.
the property tax hike is a big factor. if you bought recently, many areas have horrible tax rates to go along with the inflated prices. i’m looking to move to temecula where the average tax rate is almost 2% on the newer homes. so if you rent, and lose the tax writeoff – you also odn’t pay that nasty propety tax.
although my neighbor, who bought in 1998, paid only $160k for a hosue that is now “worth” $600k. so his taxes and mortgage, which is low – are all dirt cheap. he would probably be ok to ride it out. his house is awesome, awesome pool, great location…kids..moving would be a pain…
but to sell, and cash out..what a big payoff that would be.
