Long Island - Is it really that bad now? (Ithaca: property taxes, housing)

[nancy thereader]

Some houses in Amityville are absolutely beautiful with lovely gardens and leafy old trees.

[motoracer51]

Originally Posted by pdcnret

The market fundamentals aren't as simple as you paint them. Prices on Long Island were rising long before sub-prime loans and over-extended buyers made their mark on the market. Not too many years ago, housing prices were appreciating at the rate of 25% a year or more on Long Island. And that was long before we saw over-extended buyers.

Your (too simple) theory of pricing of Long Island real estate just doesn't hold water. Better see if they've got an extra seat in the Eco 101 course this fall.

Ok, since you seem to know what caused the situation, OTHER than supply and demand, please explain it to the rest of us.

We'll be waiting. A long time.

[pdcnret]

Originally Posted by motoracer51

Ok, since you seem to know what caused the situation, OTHER than supply and demand, please explain it to the rest of us.

We'll be waiting. A long time.

You haven't been paying attention. It's always about supply and demand. But that's not all that determines housing values. What it isn't about is overextended buyers. Simple enough for you?

[motoracer51]

Originally Posted by pdcnret

You haven't been paying attention. It's always about supply and demand. But that's not all that determines housing values. What it isn't about is overextended buyers. Simple enough for you?

It sure had an effect. I never said it was the PRIMARY reason, but it sure was a major one.

Buyers who normally couldn't afford to buy a home due to traditional loan requirements, suddenly can now due to creative mortgages, did in fact create a higher demand for housing.

There was a dwindling supply of develop able land on the Island, thus creating a limited supply.

Yes, other factors are involved, but like you said, it's always about S&D, and creative financing increased demand.

[ClarkStreetKid]

Prices of homes in the 80's were jumping until they collapsed in '89(?) all without the new creative mortgages. But the over extended buyer was there too. It seems to be a cycle that Long Island goes through from time to time and could keep happening.

From a NYT article from April 13, 1990 that may sound familiar

Banks generally will not approve a mortgage if a household's monthly housing costs exceed 28 percent of its monthly income. But many waive that requirement if buyers make a down payment of 20 percent or more, figuring that the buyer has too much invested to default on the loan.

In addition, changes in the Federal income-tax law encouraged homeowners to assume more debt in the form of home-equity loans. These loans, or second mortgages, allowed homeowners to borrow against their home's escalating equity and deduct the interest payments from their income.

But for many families the debt burden became too much.

Collapsing Housing Market Is Taking an Emotional Toll - New York Times

http://graphics8.nytimes.com/images/...ty.graphic.jpg

[Mikey'sMom>:)]

Hi, can someone give me a list of good towns in nassau and suffolk county? PLease no fighting. I just want to know good from bad. I'm not looking for a huge mansion in an exclusive area. Just a nice place to live. Thanks All

[Kbinspections]

Originally Posted by Mikey'sMom>:)

Hi, can someone give me a list of good towns in nassau and suffolk county? PLease no fighting. I just want to know good from bad. I'm not looking for a huge mansion in an exclusive area. Just a nice place to live. Thanks All

We would need a price range............

[naturely]

Originally Posted by jared69sib

hy did so many people think that they could afford a mortgage on a $300,000 home when their average salary is 30 - 40k? .

I agree with living within your means, but in NYC, it is common to spend 1/2 your salary or more on your rent, and it is not uncommon at all for people to earn 30k and spend $1500 per month - not bc they are irresponsible, but bc that is just how much rents are! Of course it is madness, but it is insane sacrifice many make just to live and work in the city where housing costs are a horrible joke.

So, if LI is = NYC in terms of housing, then I can see just why people DO take out a mortgage on a $300,000 home when their average salary is 30 - 40k. Perhaps if there were more homes under 300k, it would not even be an issue!

[Mikey'sMom>:)]

Hi, KB under 250k.. preferably, ALOT under > I know it's a stretch but as of right now, we are a single income family. I'm a stay at home mom and my husband has a great city job that unfortunately, has us stuck in NY for a LONG time. We currently rent but are looking to buy something of our own. I'd just like some insight on good neighborhoods. Thanks!

[dman72]

A relative of mine is on the SCPD, and he has told me that prescription drug abuse, which often leads to Heroin addiction, is absolutely blowing up here on LI. I've noticed a lot of shady goings on in some parks around here in Central Suffolk where I live. Obvious drug meet-ups, people nodding off in cars. It's getting worse. I took my son down by the Great South Bay to enjoy the weather and water, and there were 2 or 3 cars of people obviously up to no good in the middle of a Sunday afternoon..in a pretty upscale area.