[cariad]

Originally Posted by sunstate

Ya gotta do the math. Have you seen what banks are paying on interest bearing accounts? Not much.
What works in some cases may not work in others. By the way, if you rent, you still gotta pay utility bills and you should have renter's insurance.
All renters never see a dime of money spent. As a home owner, you at least have a chance to recoup money spent one way or another.

I know that my take on the rise in interest rates is not out of whack.

Yes, you do have to do the math, I have done the math. It is not even close. My CD's are paying over 5%. The rest I have in liquid funds that are paying an average 11% annually.
You don't have to carry it and at some point I may decide to fund it myself, but I do have renter's ins. at $412 a yr. I pay only elec. and water, the landlord pays all other bills including HOA which covers all lawn care, I have the FREE use of the golf courses, 2 pools, a lake, pontoon boat,etc.
At this point why should I buy this lovely home that would cost me at least double my monthly outlay for rent and-if I'm lucky will return my initial investment or a slight profit, if I can hold onto it long enough-rather than earn much more from better money investments

[nychiefsfan]

Originally Posted by Hondax

Quote from my Realtor in PBC;

"Our state Senate is very close to rolling back our property taxes as much as 30 to 40% and if they get that done this summer, our Governor Charlie Crist, thinks it's the shot in the arm Florida Realtors need to jump start a lot of local buyers coming back in the market."

Does anyone see how this property tax roll back will give the market a shot in the arm?

Could it end the slump?


thanks....Jeff

Here are a couple related articles:

Florida Hones Plan to Overhaul Property Taxes
When the nation's home prices were booming, Florida led the way. Now, with the housing market in a slump, the state is taking the lead in tackling one of the boom's more onerous legacies: sky-high property taxes.

In mid-June, the Florida legislature plans to convene a special session that could pave the way for more than $30 billion in property-tax relief over the next five years. That's by far the largest among the similar tax breaks some states are adopting amid a backlash by disgruntled property owners.
Florida Hones Plan to Overhaul Property Taxes - WSJ.com


Property tax reform revisited
TALLAHASSEE -- Florida lawmakers are getting ready for one massive political do-over.

After deadlocking earlier this month over lowering property taxes, lawmakers could return to work June 12 staring across a similar divide.

The issues: how and when to deliver tax cuts, how much to cut, who gets the cuts and whether the cuts would trim fat or cartilage from local governments.

Gov. Charlie Crist is optimistic a deal can be hammered out. But recent history might indicate that optimism should be tempered.

Originally, House Speaker Marco Rubio wanted to eliminate property taxes for the 4.3 million Floridians receiving a homestead exemption and pass a $9 billion sales-tax increase instead. The homestead exemption cuts the first $25,000 in assessed value from a homeowner's primary residence when the annual property tax is calculated.

House Republicans lambasted counties and cities in high-growth regions for explosive spending, partly funded by property tax revenue. However, just as many lawmakers recognized that citizens wanted the services local governments provide and not all counties had gone hog-wild.

Now, Rubio wants to supersize homestead exemptions and spread them to all property owners.

Property tax reform revisited | Local News | pnj.com

[nychiefsfan]

Originally Posted by cariad

Yes, you do have to do the math, I have done the math. It is not even close. My CD's are paying over 5%. The rest I have in liquid funds that are paying an average 11% annually.
You don't have to carry it and at some point I may decide to fund it myself, but I do have renter's ins. at $412 a yr. I pay only elec. and water, the landlord pays all other bills including HOA which covers all lawn care, I have the FREE use of the golf courses, 2 pools, a lake, pontoon boat,etc.
At this point why should I buy this lovely home that would cost me at least double my monthly outlay for rent and-if I'm lucky will return my initial investment or a slight profit, if I can hold onto it long enough-rather than earn much more from better money investments

Impressive homework done!!!

You'll know the right time to buy when the cost of owning a home drops to affordable pricing. Until then, live the good life!!!

[Muggy]

Originally Posted by sunstate

All renters never see a dime of money spent.

As a renter, I pocket 100% of the money I do NOT spend. In all three of my rental situations I've rented at a fraction of the cost of ownership. Wealth is an increase in buying power; I gain exactly the difference by renting. Right now people that own comparable units pay $600 more a month than I do. In my next rental comparable ownership costs will be approximately $800 more a month than I will be paying in rent.

I reviewed your posts and you are selling your home. No wonder you use the "throwing money away" argument.

[nychiefsfan]

Here's an interesting quote from an article entitled, "Home Sellers' Mistakes & How to Avoid Them"

An experienced Realtor can help you set a realistic price for your home by taking into consideration the comparable sales (comps) of similar homes that have sold your neighborhood or subdivision during a given period of time (6-18 months), the current market (up or down), demand for your style of home, the location of the home and any surrounding plus or minus factors, the home's condition, and its overall appeal to the buying public (curb appeal and interior staging).
MyFox Kansas City | FOX 4 Real Estate: Home Sellers' Mistakes & How to Avoid Them

That doesn't float today. How can someone comp the price of a home from 6-18 months ago when the prices keep dropping? I'll bet you the realtors didn't comp from 18 months back during the housing boom.

[nychiefsfan]

A different article states:

If you find the right house at the right price, buy it! If you're serious about buying a house, this is both the first step and the final goal. You're more likely to succeed with the active approach instead of waiting for prices to fall further.

No one can predict when the local market will hit bottom. That's like predicting the bottom of the stock market. Even the experts can't do that.
Home on a Range of Falling Prices | The Jewish Exponent

Just about every effin realtor will tell you that right now. I've had at least 2 of them tell that to me, as if they're gonna scare me into buying right now.

Once again, JMO, but I can safely predict this won't hit bottom until next year, given the amount of available homes for sale and the currnet and upcoming ARM foreclosures.

If I had to guess, the earliest the bottom might hit would be Feb or March of 2008. It may be much longer than that, but I seriously doubt it'll be sooner.

Here's an additional comment from that article:
Buyers need to avoid the temptation to toss out lowball offers, because sellers won't negotiate if they feel insulted.

My retort: Who gives a rats a$$ if the seller feel insulted? The seller is insulting the buyer by listing prices that are higher than the housing boom prices. That's a 2 way street, IMO.

[kort677]

Originally Posted by cariad

Yes, you do have to do the math, I have done the math. It is not even close. My Cd's are paying over 5%. The rest I have in liquid funds that are paying an average 11% annually.

just out of curiosity, what are you getting 11% on?

[cariad]

Originally Posted by kort677

just out of curiosity, what are you getting 11% on?

I have a PNC Bank investment account

[carolac]

Wanted you to know, by the way, how much I appreciate all the important research you do. We may disagree from time to time, but my hat is always off to you.

Originally Posted by nychiefsfan

Here's an interesting quote from an article entitled, "Home Sellers' Mistakes & How to Avoid Them"

An experienced Realtor can help you set a realistic price for your home by taking into consideration the comparable sales (comps) of similar homes that have sold your neighborhood or subdivision during a given period of time (6-18 months), the current market (up or down), demand for your style of home, the location of the home and any surrounding plus or minus factors, the home's condition, and its overall appeal to the buying public (curb appeal and interior staging).
MyFox Kansas City | FOX 4 Real Estate: Home Sellers' Mistakes & How to Avoid Them

That doesn't float today. How can someone comp the price of a home from 6-18 months ago when the prices keep dropping? I'll bet you the realtors didn't comp from 18 months back during the housing boom.

[kort677]

Originally Posted by cariad

I have a PNC Bank investment account

please, I'd be very happy getting 11%, what investment is it in?