Unconstitutional Property Tax -- what to do next? (Albuquerque, Santa Fe: sales, loan)

[cboriginal]

this will take years to figure out.

now i worry about those unequal property tax burdens. Prop 13 killed California.

houses can be paid for, taxes always rise. how do you ever figure out long term costs?

[Santa Fe]

Originally Posted by cboriginal

this will take years to figure out.

now i worry about those unequal property tax burdens. Prop 13 killed California.

houses can be paid for, taxes always rise. how do you ever figure out long term costs?

In California, they have apparently amended the constitution to make Prop 13 legal. Here, the Lightning Tax was just an act of the legislature and it seems on the face of it to be contrary to the New Mexico constitution.

The actual decision is available here:

NM's failure to apply the 3% reappraisal increase limit to transfered properties illegal

If the legislature stalls on acting on this, local governments in New Mexico could run severe financial problems. The court decision requires the assessors to cut some people's taxes a lot while not increasing others.

[WEisMD]

Thanks everybody for all the information.

I think I will put off purchasing a home in Santa Fe this year. As, #1 the market is still and will continue to correct and #2 the current tax situation just brought to my attention.

[Santa Fe]

Originally Posted by WEisMD

Thanks everybody for all the information.

I think I will put off purchasing a home in Santa Fe this year. As, #1 the market is still and will continue to correct and #2 the current tax situation just brought to my attention.

I don't think the market is going down any more except maybe in the new subdivisions, like Las Campanas and Aldea. Most of those places were way, way overpriced in comparison to existing neighborhoods, a number of homes were built on spec, many were second homes, and that is where you most likely to have the funny mortgages. A perfect storm.

But what do I know?

If you have been talking to a realtor, please let him or her know that the Lightning Tax was an important factor in your decision.

Question: had your realtor informed you of the lightning tax? Mine didn't.

[WEisMD]

Have not had any meaningful discussions with a realtor, so no I was not aware of the tax issue.

In my (worthless) opinion, the housing market will continue to slide down a bit.

[Santa Fe]

There is a key variable in the Santa Fe market which keeps the prices up -- which is that a good percentage of the homes never come on the market. This varies by area -- the newer areas are just like anywhere else. But in some areas maybe 90% of the homes pass down through the family without being sold and without ever having a mortgage -- let alone one of the funny money mortgages. So if you look at Santa Fe, you see a backlog of unsold homes -- but they are concentrated in certain neighborhoods -- mostly the newer, unfinished ones. In some of the older established areas, homes are still hard to find.

[WEisMD]

That is interesting and would explain the much higher costs in several locations.

Are you at all familiar with the Plaza Bonita subdivision? - Taken from an article. "This Eastside location is ideal!! Plaza Bonita is at the intersection of Galisteo and San Mateo Streets."

[Santa Fe]

Sorry, not familiar with the subdivision. Location sounds fine.

[WEisMD]

How do you manage to wake up that early??

What would you consider as the best areas (homes available under $400,000) to purchase?

[Santa Fe]

Originally Posted by WEisMD

How do you manage to wake up that early??

What would you consider as the best areas (homes available under $400,000) to purchase?

Just did.

Under $400,000

Eldorado. Has the benefit of good schools through intermediate school. A planned community if you like that. Other good amenities. 7,000 feet.

Pojoaque Valley. Ony if you are not concerned about quality of public schools. A very mixed area -- you have to look at the neighborhoods. Generally the best areas are east of 84/285, but you have to look. 6,000 feet. It is warmer than other places around here in winter, hotter in the summer

Los Alamos. Not many people will give you this answer. But it is a buyer's market up there. Some places have great views. And for schools, safety, quality of city services -- it stands out in New Mexico. 7,500 feet so it is greener and gets colder than other places.

Inside the city -- not so sure. Some nice areas are priced beyond 400K for a house. Maybe a realtor might give you answer. You might consider a new thread to ask this question.