[PerryChase]

I beg to differ, in the long run you’re not OK if you consider what you have to give up in order to own your house.

Don’t listen to the sales people and calculate the opportunity cost of buying at the wrong time. Over time, with interest and lost opportunity, you might end paying triple or quadruple what others pay for the same house at the low.

So you bought at $575k and prices drop to $350k. Even if you can afford the payments your opportunity cost of remaining in that house long term are very high.

Suppose your hunker down and remain in the house. You and your husband have good jobs and you stay put. Your house drops to $350k but you stay put and the market recovers by 2020.

Now look at property taxes. By 2020, the taxable basis of your house will be $743,823 (at 2% annually) for property taxes of $8925 in 2020 (at 1.2%). Someone who buys in 2012 for $350k will have a property tax basis of $410,081 or $4,921 in taxes in 2020. You’re paying $4,004 more than your neighbor who was lucky to buy at the trough. That’s a trip to Europe you’re giving up EVERY YEAR just for buying at the wrong time, even if the market recovers.

If you put the information in a spreadsheet and calculate the difference between buying at the high or low, you’ll be shocked!

Look at the extra interest, maintenance, taxes and HOA you’re paying. They add up very quickly over time.

Given the same amount of money, your standard of living would be clearly better if you are lucky or smart enough to buy at the low.

[PerryChase]

I beg to differ, in the long run you’re not OK if you consider what you have to give up in order to own your house.

Don’t listen to the sales people and calculate the opportunity cost of buying at the wrong time. Over time, with interest and lost opportunity, you might end paying triple or quadruple what others pay for the same house at the low.

So you bought at $575k and prices drop to $350k. Even if you can afford the payments your opportunity cost of remaining in that house long term are very high.

Suppose your hunker down and remain in the house. You and your husband have good jobs and you stay put. Your house drops to $350k but you stay put and the market recovers by 2020.

Now look at property taxes. By 2020, the taxable basis of your house will be $743,823 (at 2% annually) for property taxes of $8925 in 2020 (at 1.2%). Someone who buys in 2012 for $350k will have a property tax basis of $410,081 or $4,921 in taxes in 2020. You’re paying $4,004 more than your neighbor who was lucky to buy at the trough. That’s a trip to Europe you’re giving up EVERY YEAR just for buying at the wrong time, even if the market recovers.

If you put the information in a spreadsheet and calculate the difference between buying at the high or low, you’ll be shocked!

Look at the extra interest, maintenance, taxes and HOA you’re paying. They add up very quickly over time.

Given the same amount of money, your standard of living would be clearly better if you are lucky or smart enough to buy at the low.

[PerryChase]

SD realtor is right. Most loans are technically in default when the property taxes or insurance are not paid. The lender usually has the option of paying to protect themselves and adding those amounts to the loan amount due.

Homeowners of million dollar houses who don’t pay their property taxes are clearly in financial trouble. lostkitty, you’ll have the final laugh when the dust settles. Vindication is satisfying for sure. It’s not the same as wishing harm.

rustico, I was raised Catholic. But now, I don’t go to church. I’m a humanist in a Carl Sagan kind of way.

[PerryChase]

SD realtor is right. Most loans are technically in default when the property taxes or insurance are not paid. The lender usually has the option of paying to protect themselves and adding those amounts to the loan amount due.

Homeowners of million dollar houses who don’t pay their property taxes are clearly in financial trouble. lostkitty, you’ll have the final laugh when the dust settles. Vindication is satisfying for sure. It’s not the same as wishing harm.

rustico, I was raised Catholic. But now, I don’t go to church. I’m a humanist in a Carl Sagan kind of way.

[PerryChase]

I’m a bugs fan. His posts are always to the point in a “big picture” way.

Now, lenders and the MSM are talking about giving homeowners reprieve by developing new “affordability” products.

I don’t see how payments can be reduced anymore than Interest Only and Option ARM loans (which are forever loans). They’re saying that owners with exotic loans should refinance into fixed rates loans. Yeah, sure! How are buyers who can’t afford payments on Interest Only and Option ARMs going to afford payments with fully amortized 30 year loans?

The existing loan products have stretched out repayment as much as possible already. There’s no way they can make the monthly nut anymore “affordable.”

The can can’t be kicked down the road any further. Even a stagnant or slightly declining market in 2007 will cause sellers to go under water (with selling costs and carrying costs). That will feed on itself and cause further depreciation in 2008.

[PerryChase]

I’m a bugs fan. His posts are always to the point in a “big picture” way.

Now, lenders and the MSM are talking about giving homeowners reprieve by developing new “affordability” products.

I don’t see how payments can be reduced anymore than Interest Only and Option ARM loans (which are forever loans). They’re saying that owners with exotic loans should refinance into fixed rates loans. Yeah, sure! How are buyers who can’t afford payments on Interest Only and Option ARMs going to afford payments with fully amortized 30 year loans?

The existing loan products have stretched out repayment as much as possible already. There’s no way they can make the monthly nut anymore “affordable.”

The can can’t be kicked down the road any further. Even a stagnant or slightly declining market in 2007 will cause sellers to go under water (with selling costs and carrying costs). That will feed on itself and cause further depreciation in 2008.

[PerryChase]

Humm…. baby pops out and wife is ready to nest. That is so typical.

I know that’s the way it is but it doesn’t have to be. See the big lie related thread.

[PerryChase]

Humm…. baby pops out and wife is ready to nest. That is so typical.

I know that’s the way it is but it doesn’t have to be. See the big lie related thread.

[PerryChase]

Nice to see you back lostkitty.

I’d say that it’s extremely study not to pay taxes. With penalties and interest, it’s extremely difficult to invest the money have have better return.

Plus you get a tax lien that that might adversely affect your credit, you might have difficulty refinancing also. A title search will show that.

If people buy million dollar houses in Coronado and skip paying their property taxes, then I’d say that they are in financial trouble.

——–

A while back I had conversation with a friend who is a sociology professor. Happiness doesn’t happen in a vacuum but in relation to others. Like politics, it’s mostly local. We compare ourselves to our friends, family and neighbor and not to people in Africa who have nothing.

There’ve been many studies on this matter. Today, as a society, we’re not any happier than our grandparents although we have more.

The Buddhists would say that if you are happy and content despite others, then you’ve achieved a certain degree of enlightenment on you way to Nirvana.

——

I agree, parent involvement is the best education a child can have.

In my view, the best private school in San Diego is the French-American School in La Jolla.

[PerryChase]

Nice to see you back lostkitty.

I’d say that it’s extremely study not to pay taxes. With penalties and interest, it’s extremely difficult to invest the money have have better return.

Plus you get a tax lien that that might adversely affect your credit, you might have difficulty refinancing also. A title search will show that.

If people buy million dollar houses in Coronado and skip paying their property taxes, then I’d say that they are in financial trouble.

——–

A while back I had conversation with a friend who is a sociology professor. Happiness doesn’t happen in a vacuum but in relation to others. Like politics, it’s mostly local. We compare ourselves to our friends, family and neighbor and not to people in Africa who have nothing.

There’ve been many studies on this matter. Today, as a society, we’re not any happier than our grandparents although we have more.

The Buddhists would say that if you are happy and content despite others, then you’ve achieved a certain degree of enlightenment on you way to Nirvana.

——

I agree, parent involvement is the best education a child can have.

In my view, the best private school in San Diego is the French-American School in La Jolla.

[PerryChase]

Article on Florida market. Apparently, 1.2 million Brits have homes in Florida. That’s quite a few.

http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=458067&in_page_id=1770&r

[PerryChase]

Article on Florida market. Apparently, 1.2 million Brits have homes in Florida. That’s quite a few.

http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=458067&in_page_id=1770&r

[PerryChase]

good video. 🙂

We should make it as hard to get married as it is to get divorced. People should show that they have the qualifications to have children and support a spouse.

Right now, we have sex and voila, out pops a baby. Let’s go shopping for a house, honey. Oh, wow, the Realtor says we can afford this house. If David and Jane can afford their house, then we should be able to buy one too.

That’s pretty much how people shop for starter houses.

[PerryChase]

good video. 🙂

We should make it as hard to get married as it is to get divorced. People should show that they have the qualifications to have children and support a spouse.

Right now, we have sex and voila, out pops a baby. Let’s go shopping for a house, honey. Oh, wow, the Realtor says we can afford this house. If David and Jane can afford their house, then we should be able to buy one too.

That’s pretty much how people shop for starter houses.

[PerryChase]

There’s the link to the Amarillo property.
Why go to God foresaken Amarillo, TX, when you can buy cheaper in Temecula (close to LA, San Diego, Orange County).

You should send the link to the house you bought at $115/sf to that TX Realtor. How much do you think that house in Amarillo is worth?

http://piggington.com/life_is_good_in_amarillo

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