ToyKraz

I have lived here in Calif for 25 years. Moved here with my parents from Florida. I for one am glad the prices have skyrocketed. The last home I owned for 13 months and made over $200K on it. The house I am currently in will net me another $400K in just 2.5 years. I will also add that I have to somewhat agree with GSP, hence I will be moving out of Calif. next summer.

Equalizer 2

I agree with Shovelhead, here in WA the state has a % on what the taxes can be and they are currently maxed out. It used to be your house was assesed for value something on the order of every 2-4 years, now they assess it every year with the "value" increasing $5-10K a year.

This way they keep increasing taxes without raising the tax rate.

Gotta love them politicians. NOT!!!!!

Shovelhead

That "quick bucks" to those who are "flipping" houses, is killing the older folks on fixed incomes and the rest of the middle class folks who are just trying to STAY in their houses with the escalating tax bills.

gerry

Here in California we have something called Prop 13...

The price you pay for the house is the price that the taxes are assessed at...

Howard Jarvis came up with this many years ago because the price of property was rising so much retired people were losing their houses because they couldn't pay their tax bills.

I purchased a house in 1998 for 240K. It is now worth 750K but the taxes are still based on the 240K price. BTW it is a 900 Sqft house in a decent area near Marina Del Rey. Mine is all about location.

Of course if you do a complete tear down and rebuild then it is reassessed, but if you do a remodel (leave 1 wall standing) then the assessed value is only the origional Plus the value of the Addition or Remodel.

The Prices have pretty much flattened out partially due to interest rates rising but the market is still pretty active. At the begining of the year if you asked 500k for a house the buyers would actually be in a bidding war and usually the houses sold for 50K or more over the asking price and you would sell fo 550k.

Shovelhead

With automatic escalation clauses becoming the norm in most bid contracts now it's not unusual for the buyer to get more than they were asking here either,

Geico266

In California illegal alliens (People who are here ILLEGALLY, and should NOT BE HERE, and who are BREAKING THE LAW) get a tuition discount to go to college while someone is here legally has to pay $6,000 more a year?

Shovel, this thread belongs with the "Stolen Car Thread". lol

Where do I begin with this one?

HiJenks

In my neighborhood the prices have gone up mainly because of the "equity loans" in SoCal. They take out "equity" or low interest loans on their high value property in SoCal and pay cash for property in the Tri-state area.

The property values here have doubled in the last two years.... a $30k lot with mobile started at $40k a few months ago and was bid up to $65K.

apache

In our neck of the woods they say that only some 11% of the working residents can even qualify to purchase a house. thats sad, how is a young couple supposed to have a go at it with thses prices. Median is now at $603K.

bumpytruck

This is what I was talking about,I'm very familiar with the fix up game and how it works. I just don't understand how so many people afford a 500K house, I mean the houses I've seen that sold for 400K you can buy here or most anywhere in very nice neighbohoods and locations for 250 to 300 and at that a lot of people are maxed out. This was fun and I learned a little something ontop of all this,hope no one gets in trouble here over this thread.

spunbearing

Many people were getting " interest only" loans for a house that they couldn't afford. After 6 months or so they were able to refinance and roll over the equity and pay down their loan. That's how they were affording it then. Now?????????

rammtuff

*shurgs*

Free enterprise my man. Free enterprise.
First house me and the Mrs lived in I built an apt in it that paid almost all the mortgage. I still banked what I would have paid and had a nice downpayment on another house that I rented out. Built an apt in that one and so on and so on. I have been buying one house a year for the past 9 years. I explain this to people and they just stare at me with a blank look on their faces. Their parents paid a mortgage and theirs did so they think they should also. Entrepreneurs usually think outside the box. Do the math on 18x rent. Pretty good income.

Shovelhead

Free enterprise is what built America.
Retired people being forced to sell the home they've lived in for the past 50 years because they can't afford to pay the annual real estate tax any more due to the tax bill rising by 20% every year is what will ultimately lead to its demise.

Just another example of the Me-First American.

Haulin_in_Dixie

Or you can still move to Alabama and purchase a 20 year old home on 1/2 acre for less than $100,000. Fixer upper for $35,000 to $50,000. My house has taxes of right at $200 a year.