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Old 11-11-2008, 11:41 PM
 
165 posts, read 585,926 times
Reputation: 115
Exclamation WOW! Lincoln Area homes for sale-why so cheap??

I just came back from lincoln where i went to see a house for sale. ALL the houses in that area were very very nice and very cheap. A house that would sell 600k a couple years ago now its down to 250-300k (i asked people living in that area). The area where i went was the lincoln crossing (i remember i passed a ferrari ranch road). Anybody knows why that area is so cheap? all the houses are absolutely beautiful and the price is too low for what they offer. is there a catch? my family is ready to buy a house there even though our work is in sacramento but we don't mind to drive if we 're gonna live in one of those homes. Anyone know why lincoln is so cheap? what's the catch? is it a good idea buying over there? any specific part of lincoln worth checking out? We are looking for a house in the 200-250k range, 4/3, over 2000sq feet.
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Old 11-12-2008, 02:21 AM
 
Location: Lincoln, CA
504 posts, read 815,260 times
Reputation: 483
You can do a quick search for "Lincoln" in the top tab and get a quick rundown of the city. I've just purchased a property recently as well and have looked everywhere. It will largely depend on what you are looking for in a home. It's a buyer's market right now and you can get some really great deals since there are so much to choose from.

Lincoln has some pros and cons. The pros are that, like Rocklin and Roseville, there are rolling hills in several communities and most are brand new built in golf course communities. Its really close to Roseville, which has some tech jobs still, the Galleria Mall, and some of the best restaurants and shopping in the area. The commute to Sacramento is not bad at all, but can be congested a little from the 65. Little to no crime white collar community in golf course retirees, nice schools, fairly new built city.

The cons are that because it's a new built, they have high Melo Roos tax, which is a community tax that helps builds schools and community center. Not all areas will have Melo Roos tax, bust most do and it's about another $100-150 added to your mortgage each month. Most housing communities also have HOA fees and will depend on where you live. They can range from $100-250 a month easily, but keep in mind what those fees are for. Most offer landscape, internet and DSL wi-fi, security, etc. for those fees and most importantly, your right to sue as a part of the community if you have any construction damage if the house is built under 10 years (which most are).

There is some traffic congestion on Hwy 65 during peak traffic hours. It's not as bad as most people will say. I'm from the Bay Area so any traffic is still better than Bay Area traffic. Hwy 65 is THE highway to use since there are very little alternate routes if you want to get anywhere outside of Lincoln.

There are little to no jobs in Lincoln itself so you'll have to commute outside, which goes back to my point of the light traffic on 65. The good news is that there are plans to make an additional freeway that's to be completed by 2011, so traffic is not a big concern unless you have road rage for the next 3 years.

Schools - if you have kids, Roseville will be a better choice. Roseville's schools are really, really good. You can check out Great Schools - Public and Private School Ratings, Reviews and Parent Community and do comparisons. Lincoln isn't too far behind in most communities. Because of their low population, Lincoln seems to be overcrowded since there are only a few schools to choose from. They were supposed to build a new high school, but the plans got scrapped due to the economy and people foreclosing their homes and the city losing their finances due to the stop in builders building new homes.

Roseville, Rocklin and Lincoln are almost the same since they practically border each other. The home prices are way better than what you can get elsewhere - good schools, nice new homes, good communities, shopping, restaurants, low crime, good home values. Lincoln is probably the better buy from the three right now because you can get more "bang" for your buck so to speak. More square footage for the same price compared to Rocklin and Roseville. Once the economy goes back up and home values rise, Lincoln would also spring back quickly to its old boom of fancy homes and lots of building I think.
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Old 11-14-2008, 05:57 PM
 
1,026 posts, read 1,682,579 times
Reputation: 1286
The economy's not going back up for a very long time.

The reason why those houses are so cheap is because they've probably all been foreclosed.

It's not a "buyer's market" unless you want to be stuck on the moon for 10 years.

Hope your job is secure.
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Old 11-15-2008, 02:57 AM
 
Location: Lincoln, CA
504 posts, read 815,260 times
Reputation: 483
Quote:
Originally Posted by Jeromeville View Post
The economy's not going back up for a very long time.

The reason why those houses are so cheap is because they've probably all been foreclosed.

It's not a "buyer's market" unless you want to be stuck on the moon for 10 years.

Hope your job is secure.
Gee, such optimism. If it's not a buyer's market, it certainly isn't a seller's market either.

On the other hand, everyone has their own situations. If you're ready to buy, you're ready to buy. It beats paying rent to someone else for the same amount of your mortgage each month. And if the world crumbles for the next ten years and you're out of a job, it's just as difficult whether you rent or own.
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Old 11-15-2008, 10:26 AM
 
165 posts, read 585,926 times
Reputation: 115
jeromeville,
i agree that houses are not going up anytime soon but we are not planning to sell it anytime soon either. We'll probably end up living in there for another 10years or more or just rent it if for some reason we want to move. plus we rent right now so we need to buy a house, we always wanted to buy a house. we are not buying a second house for an investment with fast profit, we actually need a place to live.
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Old 11-15-2008, 11:33 AM
 
7 posts, read 38,664 times
Reputation: 10
rosevillie forcloser rate is raising.. hate to say it but it is true.. nice built out area dow.
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Old 11-17-2008, 02:18 PM
 
2 posts, read 12,039 times
Reputation: 11
Prices are low because of the crazy fees/taxes on top of the crappy market. I just purchased a house out here in lincoln. According to Zillow it sold brand new in 2005 for $385k. When I tried to buy it last Spetember they wanted to do a short sale at $229k, I offered $205k. The bank stalled and rejected everything for literally 5 months. Just purchased the SAME house after foreclosure for $180k! It lost over half its value in 3 years--crazy.

I'd be feeling really good about the purchase price if it weren't for the crazy HOA/Mello Roos BS. I don't know the exact breakdown but it adds $239 a MONTH to my mortgage payment! This DOES NOT include the property taxes. I think half is the Mello Roos and there are TWO different HOAs. I don't think I'll ever use the stupid clubhouse so the lincoln xing one is a total waste and the other is for the landscaping/ high speed internet or whatever. Too bad I really don't have a front "yard" with lawn. It has like 2 bushes, so that is a waste too. I guess they keep the little parks nice. The internet is a joke if you try to use it for anything beyond basic surfing/e-mail. It's from some horrible company called greenfield and it's fiber optic so you'd think it was state-of-the art like surewest's blazing-fast internet but it is literally about 1/3 the speed of my old comcast. The e-mail also crashes whenever my phone and home computer try to check it within a half-hour of eachother. There are other problems too. So while you might look at your payment and see it's $xxx a month and think wow that's not too bad, after all the taxes and fees it adds up. And that's money you will never get back and might make it hard to sell in the future.
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Old 11-17-2008, 05:20 PM
 
Location: Sacramento
13,390 posts, read 15,234,170 times
Reputation: 5103
Quote:
Originally Posted by Lincoln916 View Post
I'd be feeling really good about the purchase price if it weren't for the crazy HOA/Mello Roos BS. I don't know the exact breakdown but it adds $239 a MONTH to my mortgage payment! This DOES NOT include the property taxes. I think half is the Mello Roos and there are TWO different HOAs. I don't think I'll ever use the stupid clubhouse so the lincoln xing one is a total waste and the other is for the landscaping/ high speed internet or whatever. Too bad I really don't have a front "yard" with lawn. It has like 2 bushes, so that is a waste too. I guess they keep the little parks nice. The internet is a joke if you try to use it for anything beyond basic surfing/e-mail. It's from some horrible company called greenfield and it's fiber optic so you'd think it was state-of-the art like surewest's blazing-fast internet but it is literally about 1/3 the speed of my old comcast. The e-mail also crashes whenever my phone and home computer try to check it within a half-hour of eachother. There are other problems too. So while you might look at your payment and see it's $xxx a month and think wow that's not too bad, after all the taxes and fees it adds up. And that's money you will never get back and might make it hard to sell in the future.
I'm really glad you brought this topic up, even if my focusing on this for a moment is a bit of a redirect of this thread (sorry about that, but I think this is a good issue for current consideration within this thread).

The taxes you mention are something called a "Direct Levy", and are generally in place in all of the newly developing areas. When the homes were first sold in the 2004-2006 timeframe, for prices like you mention in your posting, the Direct Levy portion of the property tax generally adds about 25%-50% to the overall annual tax bill, depending upon initial purchase price. Unfortunately, many developments such as Lincoln Crossing or Twelve Bridges generally have widely varied pricing, but unlike the core property tax rate (the Prop 13 rate tied to purchase price) the Direct Levy doesn't vary much between homes in an area. Therefore, the less you spend on the home, the greater the impact of the Direct Levy on your annual property tax bill.

This is made much worse in the current market. As home prices have a steep decline, the purchaser of the resale has the benefit of establishing a lower core tax rate due to the lower purchase price, but the Direct Levy portion of the taxes remain constant. As a result, it is very possible that the Direct Levy portion of the annual property tax bill can actually be greater than the core property tax, in effect doubling what would normally be your annual tax bill.

Then you add in the HOA fees, and a cheap home can still become pretty expensive when it comes time for the monthly payment.
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Old 11-17-2008, 06:38 PM
 
Location: Living on the Coast in Oxnard CA
9,798 posts, read 12,386,429 times
Reputation: 11221
This is a big time buyers market. The nation is in a downturn and anyone with a little cash can come in and pick up some of the pieces. We bought last year in Arizona because I never thought we could afford a home in California. The only problem is that I could never find a job that pays what I make in California. I continued to work in California. Now we are going to buy a home in Ventura County. Homes there have also declined to the point that I wish we had waited on buying the Arizona home. The only good thing is that I have choices and we can afford both. My parents live there so and we love the home, so we are keeping that place. The homes we are looking at in Oxnard, California were in the $500,000 range not too long ago and have declined to the $180,000 TO $250,000 range. I love this market. Hoping that it goes down further by the time we buy. Wish we could buy a dozen homes in this market. I bet they would rent for more than the cost of owning them.
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Old 11-17-2008, 11:45 PM
 
165 posts, read 585,926 times
Reputation: 115
After an intense house hunt i came to this conclusion. Not all homes that are cheap are a bargain. A lot of homes built in nice communities require all those monthly fees lincoln916 talked about + property taxes. Basically you will end up paying more that it seems, not saying it's not a good price but not the bargain that it appears to be either. Also, homes that were new and cheap 5-6 years ago have become bad areas with low and middle class people buying them so even if the price for the house is tempting the location will not be a good choice. What i think is best is to look for foreclosure houses in areas that don't require fees and are in upscale areas where the prices always were high until the economic crisis and not something that was cheap 5 years ago then expensive and cheap again.
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