The Rural Recession Hits Home (Portland, Ellsworth: mortgage, loan, vacation home)

[virginia farm girl]

The Rural Recession Hits Home

The rural recession hits home | Portland Press Herald

[forest beekeeper]

Vacant homes, I think would represent vacation homes.

These people have primary homes.

I seem to recall a discussion a while back, folks wanted vacation homes to be taxed at higher rates, also.

[tcrackly]

The article is about Waterboro, in particular the Lake Arrowhead subdivisions. These homes were once seasonal but now are owned by many first time homebuyers and recent retirees looking for the good life. There are fewer and fewer "seasonal" homes in southern Maine because so many have been insulated and set up for year round living by a housing hungry population.

[forest beekeeper]

'Lake Arrowhead subdivision' homes may well have been becoming converted to year around residences, when I read the article, it seem ed to me that they were talking about vacant homes. Not homes with families in them.

My apology if I have mis-read it.

[Elcarim]

LOL One of the guys Brad works with asked the other day, "Man, are you really moving to Maine? Don't you know they're in a recession??"

His response....."Aren't we all at the moment?"

[forest beekeeper]

Is there a place in America who is not being effected by this?

I would assume that Maine is like every other state and is going to be effected.

[retiredtinbender]

Good article. Shows a lot but leaes out what was paid for thse houses and what they are actually worth. Appraised or assessed values would have been a good bench mark to look at.

Originally Posted by forest beekeeper

'Lake Arrowhead subdivision' homes may well have been becoming converted to year around residences, when I read the article, it seem ed to me that they were talking about vacant homes. Not homes with families in them.

My apology if I have mis-read it.

From what I got out of it the homes were year round family homes. They even mentioned that one had a swing set in the back. The people whio bought them were living on the bubble and it only took the oil price rise to burst it. When you have to commute to Prtsmouth or Boston to earn the mortgage it get rough real quick.

[tcrackly]

Naive homebuyers were convinced they could afford (those inflated realty quotes) more than they could earn by lenders that figured they could rape the buyers for lots of interest and fees and sell the loan before there was a default. A little greed goes a long way.

[BoundtofindME]

I'm really astounded at the modest prices they are selling for, especially within a 1/2 hour of Portland and in a lakeside community. Wow. Even here, around Ellsworth pop. 6400, that price range continues to be entry level with no lake in sight.

[Northern Maine Land Man]

I know that subdivision. Most homes there have no lake in sight. The ones on the water cost considerably more. There remain many lots that are either unsold or undeveloped. Lake Arrowhead is a very shallow lake held back by a dam on the headwaters of the Little Ossipee River. There is a reported milfoil problem in the lake.

Homeowners set to fight Lake Arrowhead's milfoil

"The 2007 tax revaluation in the town of Limerick, Maine, took account of Lake Arrowhead’s variable leaf milfoil infestation by lowering Arrowhead’s lakefront property values 10%, and added a provision for an additional 10% devaluation for those properties with especially heavy plant growth offshore."

Maine Congress of Lake Associations - Maine Milfoil Initiative

Aside form the milfoil situation, it is a very weedy lake. The weeds hide stumps that are still there from when the land was cleared to make the lake. Weeds, tough boating and poor swimming reduce property values.