Howard County used to be ranked #1 wealthiest county (Columbia, Severn: apartments, mortgage)

[truthhurts]

In terms of median family income. When did this happen? Howard just sort of sprung up over night as this bastion of new wealth.

http://www.census.gov/acs/www/Produc...03/R14T050.htm

What happend to Fairfax County, VA and Montgomery County, MD dominating the coveted Top Slots. Is Howard County now the new money place to be in the DC-Metro Area?

[kjg1963]

Every time I drive on Route 32 towards I-70 I see huge houses popping up everywhere. I think the wealth has moved in. Since it was so rural not so long ago, there was plenty of room to grow. I guess those new million dollar homes are bringing in more people with more money. Has the population also grown as the wealth of the county has grown?

[newhart]

Has the population also grown as the wealth of the county has grown?

It appears so. From U.S. Census results, the county population has risen as follows: I can't image how different the place must have been 40 years ago.

1970: 61,911
1980: 118,572
1990: 187,328
2000: 247,842
2003: 264,265

[kjg1963]

Originally Posted by newhart

It appears so. From U.S. Census results, the county population has risen as follows: I can't image how different the place must have been 40 years ago.

1970: 61,911
1980: 118,572
1990: 187,328
2000: 247,842
2003: 264,265

That is really amazing! I guess alot of that growth in the 70's was due to Columbia. I remember when I was little, my parents were considering buying a house in Columbia. I really thought we were gonna move. My sisters and I had even fought over who would get what room. Right before the final decision, they decided that it was too much in the boonies for them. Wow, if they had only known back then how much Howard would've grown, I wouldn't be on here half the time defending PG County.

[RuralCoastalGuy]

Originally Posted by kjg1963

That is really amazing! I guess alot of that growth in the 70's was due to Columbia. I remember when I was little, my parents were considering buying a house in Columbia. I really thought we were gonna move. My sisters and I had even fought over who would get what room. Right before the final decision, they decided that it was too much in the boonies for them. Wow, if they had only known back then how much Howard would've grown, I wouldn't be on here half the time defending PG County.

I worked for a former employer who was based in Columbia for a number of years and lived in Severn (Ann Arundel County) for one year. I recall Columbia being more than a planned city but one that had long term growth potential. From what I am reading it sounds like this has happened.

[kjg1963]

Columbia and areas right outside of it are taking off. I used to live off of Route 175 on 108 (Waterloo Road) in the 80s. I lived in a small apartment building that was originally a tavern. There was really nothing around us except for some older small homes on large lots. I only lived there about a year and really never went back down that way. A couple of years ago I had to take my dog to be euthanized and the Howard County Animal Control is on 108. I was amazed at the area. I didn't recognize it. Huge houses, shopping centers, and the road was widened. I grew up in Langley Park and, since that area was already wall-to-wall apartments, homes, and strip malls, there was never any new growth. It still looks the same to this day. So to see a place so changed and unrecognizable was amazing to me.

[truthhurts]

Yea this is so true. The last time i was in Howard County was when they were first building River Hill high school and that part of the county is soooooo rural, but having talked to a few friends that lived in the Clarksville area it's like a boom town. There's so much stuff springing up all over the county. I hear the mall is now upscale hehe i remember when it was such a dump.

[callsitlikeitis]

Originally Posted by kjg1963

Every time I drive on Route 32 towards I-70 I see huge houses popping up everywhere. I think the wealth has moved in. Since it was so rural not so long ago, there was plenty of room to grow. I guess those new million dollar homes are bringing in more people with more money. Has the population also grown as the wealth of the county has grown?

Sure has!! When I lived in Columbia in 1992, there were actually a few farms left IN Columbia itself!

The building was just starting out toward 70 on 32 in 1992. Traffic was becoming heavier each year. At the time, houses out that way had to be on lots 3 acres or larger. With Columbia spreading in all directions, the population has to have grown.

[mom2boys37]

Howard County is to over populated. It never used to be this way. What happens when these people who are building their million dollar homes die..what will their kids have??? a big ole mortgage or pay off amount they can't afford, so in fact they will lose it..nothing left. I don't know I always think of this stuff when it comes to people around this and other areas in Maryland. I would rather have a home that is cheap so I know I can afford it and my kids will have some kind of inheritance.

[truthhurts]

Originally Posted by mom2boys37

Howard County is to over populated. It never used to be this way. What happens when these people who are building their million dollar homes die..what will their kids have??? a big ole mortgage or pay off amount they can't afford, so in fact they will lose it..nothing left. I don't know I always think of this stuff when it comes to people around this and other areas in Maryland. I would rather have a home that is cheap so I know I can afford it and my kids will have some kind of inheritance.

First of all don't you think you're being a bit presumptious? Are you the financial advisor or money manager to the people building these homes? Do you know whether they make enough money to afford these homes? Do you know their debt/equity level? Do you know how much they have in savings?

If you answerd Yes to any of those following questions then you're right, but if you answerd NO, which i highly believe you did you're silly.

First of all your home is the largest invesment or asset you'll ever have (for most people), so if you can afford a bigger home and happen to be in a higher tax bracket then most it is actually in your best interest (literally) to purchase a large home with a large mortgage. Why?

1. Mortgage interest is tax deductable
2. Bigger mortgage higher interest payments
3. More equity you have in the home the more value you have
4. Home price appreciation


If I buy a 1.0 million dollar home and my family has a combined income of 300,000 and i sell my previous home for #400,000 dollars i'm only financing 600,000 dollars at 6.25% rate of interest. The montly mortgage payments come to 3,700 dollars. You'll also be able to deduct 37,000 dollars worth of interest on you income taxes.

If you make 300,000a year and are taxed at 35% (300*.35)= $102k dollars you pay in taxes, so your after tax income is like 300-102 + (plus any tax deduction so the 37,000 in interest) = $235,000 in after tax income

Then you just divide the $235,000/12 = 20,000 dollars income per month

Your mortgage is only 3700/20,0000 = 18% of your monthly income

In other words how is this not affordable?

Seems to me you're just jealous

You said

"a big ole mortgage or pay off amount they can't afford, so in fact they will lose it..nothing left."

Second of all just to make my point even better review number #4 above (home price appreciation)

Okay we bought a house for 1.0 Million if it appreciates at a 5% rate over the next 10 years it is worth 1.0(1.05)^5 = 1.62 million

so the house is now worth 1.62 million

Under you assumption if the person dies

well in ten years the mortgage balance would be about $500,000 dollars

They sell the house for a sligth prem above 1.62 let's say for 1.8 million...well they have more than 500,000 dollars of equity in the house (down payment of 400,000 plus 100,000 of payment into the mortgage)

and the rest of the month is just paying off the loan they owe

1.8 selling price minus 500,000 (what is owed on the mortgage)

= a profit of 1.3 million for the children, so in other words everything you just said is just jealous bs

I'll leave you with an Adam Smith Quote from his prized book "The Wealth of Nations"

"The Affluence of the rich excites the indignation of the poor, who are often both driven by want, and prompted by envy, to invade his possessions."