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Old 05-01-2015, 09:54 AM
nei nei won $500 in our forum's Most Engaging Poster Contest - Thirteenth Edition (Jan-Feb 2015). 

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Location: Long Island / NYC
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Quote:
Originally Posted by NOLA101 View Post
The only people who say this nonsense "50k in Bumpisville, MS is 500k in NYC" are people who live in Bumpisville, MS. Both places use the same currency, and everything but real estate costs basically the same. It's not like you "lose money" if you move from Bumpisville, MS to NYC, you will just adjust to living in your new city, just like the locals.
I've heard plenty of New Yorkers say the same, though no I don't really agree it. Search the NYC forum and you'll find stuff like that.

Quote:
An apple, or mortgage points, or a TV, or house cleaning, or college tuition, or whatever, costs the same within national boundaries, more or less. The only real difference is real estate, and that is tied to appreciation anyways, so if you're paying more, the assumption is that you real estate is also increasing in value more, so it works out. I would rather have a 1 million home appreciating in value and have heavy mortgage costs than a 200k home with no gain in value, and light mortgage costs.
Irrelevant if you're renting, owners are the minority of New Yorkers. Sure owning a one million dollar house appreciating in value with high mortgage costs is a better deal, if you can actually afford it. For most people, a non-appreciating $200,000 house is more practical, the very expensive home has mortgage costs that are too high and tying up that much of your income in your house is unpleasant. If you're buying your first home, appreciation isn't helpful. Options are are more limited in expensive metros.

Last edited by nei; 05-01-2015 at 10:02 AM..
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Old 05-01-2015, 09:56 AM
 
Location: The City
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Quote:
Originally Posted by nei View Post
I've heard plenty of New Yorkers say the same, though no I don't really agree it. Search the NYC forum and you'll find stuff like that.



Irrelevant if you're renting. Sure owning a one million dollar house appreciating in value with high mortgage costs is a better deal, if you can actually afford it. For most people, a non-appreciating $200,000 house is more practical, the very expensive home has mortgage costs that are too high and tying up that much of your income in your house is unpleasant. If you're buying your first home, appreciation isn't helpful. Options are are more limited in expensive metros.
cost of entry to these markets is more the limiter, If riding the appreciation the impact is less felt. Cost of entry is truly the barrie, not resales and upgrades as much and in these cases can actually benefit
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Old 05-01-2015, 09:59 AM
nei nei won $500 in our forum's Most Engaging Poster Contest - Thirteenth Edition (Jan-Feb 2015). 

Over $104,000 in prizes has already been given out to active posters on our forum and additional contests are planned
 
Location: Long Island / NYC
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Quote:
Originally Posted by kidphilly View Post
cost of entry to these markets is more the limiter, If riding the appreciation the impact is less felt. Cost of entry is truly the barrie, not resales and upgrades as much and in these cases can actually benefit
Yes, that's a good of putting it. I would focus on the "cost of entry" everyone who already has a home can buy another similar one.
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Old 05-01-2015, 10:00 AM
 
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Seems like they should be adjusting for the cost of living instead of just going off income alone. Most people spend by far the largest piece of their income on their rent or mortgage. $100,000 income with a $3,000 a month mortgage payment is going to have a different impact than $75,000 income with a $700 mortgage.
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Old 05-01-2015, 10:16 AM
 
Location: The City
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http://www.census.gov/housing/census...can-afford.pdf

Where Do People Spend the Most of Their Paycheck on Housing?

Top 10 Metros Where Renters Spend Most Income on Rent | Multifamily Executive Magazine | Rents, Rent Trends, Finance, Effective Rents, Los Angeles-Long Beach, CA, Miami-Fort Lauderdale-Pompano Beach, FL, San Francisco-Oakland-Fremont, CA, San Diego-C
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Old 05-01-2015, 10:20 AM
 
Location: Syracuse, New York
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Having a cute house in an expensive metro can pay off.

People in expensive areas are more likely to find someone willing to pay big bucks to live in their basement.
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Old 05-01-2015, 10:44 AM
 
Location: Howard County, Maryland
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Quote:
Originally Posted by nei View Post
Irrelevant if you're renting, owners are the minority of New Yorkers.
How is that irrelevant? Rents are based on the cost of the landlord to operate the property (among other factors), which includes his mortgage on the property. A house with the same square footage might go for $80,000 in rural Mississippi and $800,000 in Manhattan. Needless to say, the NY landlord will have to charge a higher rent to cover his costs than the MS landlord would.
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Old 05-01-2015, 11:50 AM
 
Location: South Beach and DT Raleigh
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Per another post, for many of these places it's about cost of entry and, I might add, cost of staying put. For certain Miamians like me that "entered" prior to the RE boom of the early 2000s, we not only bought much lower but are homesteaded for tax reasons based on the price we paid. I could not afford where I live today if I were entering the market 15 years later. My property value has quadrupled and my property taxes would have done the same. While my homestead exemption is portable to a future Florida residence, it really only net neutral if one keeps the value of a new home similar. To get a larger place than I have now, I'd have to move somewhere where RE is much cheaper per square foot.
Things are similar in CA where prop 13 kept taxes low for long time CA homeowners. Many of them are in the same boat as us in Florida. The value is really only realized when one decides to leave and move somewhere less expensive.
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Old 05-01-2015, 12:11 PM
 
Location: The City
22,331 posts, read 32,143,293 times
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Quote:
Originally Posted by rnc2mbfl View Post
Per another post, for many of these places it's about cost of entry and, I might add, cost of staying put. For certain Miamians like me that "entered" prior to the RE boom of the early 2000s, we not only bought much lower but are homesteaded for tax reasons based on the price we paid. I could not afford where I live today if I were entering the market 15 years later. My property value has quadrupled and my property taxes would have done the same. While my homestead exemption is portable to a future Florida residence, it really only net neutral if one keeps the value of a new home similar. To get a larger place than I have now, I'd have to move somewhere where RE is much cheaper per square foot.
Things are similar in CA where prop 13 kept taxes low for long time CA homeowners. Many of them are in the same boat as us in Florida. The value is really only realized when one decides to leave and move somewhere less expensive.
taxes and assessments vary wildly from state to state and municipality to municipality

but a fair point

here in PA millage generally increases but on older assessed values so in general taxes wont double or triple even with price movements on older houses. Now new construction here gets new assessments in general so would have a higher assessed value. its not as much an issue with houses that are older if that makes sense. Sounds like Miami works differently in that regard

Now Philly proper just redid all assessments and tax structure but is rarer and like 4 times a century in that regard
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Old 05-01-2015, 05:30 PM
 
Location: Mobile,Al(the city by the bay)
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Wow Birmingham is more affluent than : Buffalo , Jacksonville , Louisville , New Orleans , Miami , Oklahoma City , Memphis,Orlando ,San Antonio , Tampa, and Las Vegas.Now some of them shocked me.

The bolded cities are shockers.
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