Tax Assessed value versus reality im Matsu Boro

[Dakster]

Originally Posted by highlife2

What buyer in their right mind would buy at the peak of a market?

Sometimes you don't have a choice. And money spent on rent is basically throwing it away. If you are going to stay in an area a LONG time it doesn't matter.

Also, I look at it another way. I currently own my home. As prices go up, so does the value of my current home. As long as I am selling and buying at the same time I should be OK. Will it stink if I buy something and prices fall, yes - it just means I better like what I buy.

Example, My neighbor bought at the peak of the market in 2007, paid $850k for his house. (I paid $240k in 1999 for mine) Market crashes house is worth maybe $400k in 2009. Of course he is upset, but he SOLD his house in Nevada for $800k - and it too crashed to $350 - $400k. What difference would it have made. He could have been hit if he held the Nevada property thinking the market would continue to rise. And of course if he sold and waited he could have made out a little better. Market has come about 1/2 way back.... BUT he would have had to pay about $3500 - $4k a month to RENT the same size house. So figure $40k - $48k a year. You can now finally start to find decent houses on the Market here, 7 years later. $40k - $48k x 7 years is a lot of coin to just "lose". Anything on the market after 2007 until late last year was basically junk in my area. Anyone with something decent just held on and those that couldn't rode out the foreclosure process as long as possible and didn't maintain the house.

I guess my point is - you wait until you can find something you like and can afford. Then get it. Otherwise, you could be waiting your whole life and never do anything but pay rent. I am counting on people like you for that, since I want to buy some rental property and have you help pay my mortgage on my house.

[highlife2]

Originally Posted by Dakster

Sometimes you don't have a choice. And money spent on rent is basically throwing it away. If you are going to stay in an area a LONG time it doesn't matter.

Also, I look at it another way. I currently own my home. As prices go up, so does the value of my current home. As long as I am selling and buying at the same time I should be OK. Will it stink if I buy something and prices fall, yes - it just means I better like what I buy.

Example, My neighbor bought at the peak of the market in 2007, paid $850k for his house. (I paid $240k in 1999 for mine) Market crashes house is worth maybe $400k in 2009. Of course he is upset, but he SOLD his house in Nevada for $800k - and it too crashed to $350 - $400k. What difference would it have made. He could have been hit if he held the Nevada property thinking the market would continue to rise. And of course if he sold and waited he could have made out a little better. Market has come about 1/2 way back.... BUT he would have had to pay about $3500 - $4k a month to RENT the same size house. So figure $40k - $48k a year. You can now finally start to find decent houses on the Market here, 7 years later. $40k - $48k x 7 years is a lot of coin to just "lose". Anything on the market after 2007 until late last year was basically junk in my area. Anyone with something decent just held on and those that couldn't rode out the foreclosure process as long as possible and didn't maintain the house.

I guess my point is - you wait until you can find something you like and can afford. Then get it. Otherwise, you could be waiting your whole life and never do anything but pay rent. I am counting on people like you for that, since I want to buy some rental property and have you help pay my mortgage on my house.

The key is you have to KNOW your staying in an area long term. Also if you dont have other property to leverage it can be a bad deal. But you are right what I am doing is renting until I have the money to put enough down on something so that my total housing costs are 1000 or less (how ever much down that takes). I have too many things in life I want to do to be shoveling gargantuine amounts of money into a mortgage payment and huge gas bills.

There is only so high property or rent can rise in anchorage before the economy completely falls apart. If my total housing costs ever exceeds 1/4 of my net even living in dicy areas then its time to negotiate a huge raise or its time to go. I have been burned a few times so I am not so willing to leverage myself out again.

Mortgage interest is just as much a money throw away as rent and the tax write off does not cover the interest you pay dollar for dollar. Maybe less than rent but why loose the flexability over a few hundred bucks. Plus I have heard that tax write off is going away, could you imagine banking on that write off and being 3 years in out of 15 or 30 and that going away.

How can I make 15-30 year decisions when voters cant even decide on a mil rate. It seems like this stuff is changing every couple years which is really unstable.

[Dakster]

I have to roll with the punches Highlife2. No other way around it.

I don't like the interest paid either, but unless I win lotto, I can't pay anything off completely either.

Neither of our views are wrong, just different.

[highlife2]

Originally Posted by Dakster

I have to roll with the punches Highlife2. No other way around it.

I don't like the interest paid either, but unless I win lotto, I can't pay anything off completely either.

Neither of our views are wrong, just different.

Thats true, you have to do what ever you need to do so that you can sleep at night. I already sleep just so so, so if I had 2 grand in housing costs every month it would probalby eat me alive.

[mizzile]

Originally Posted by hogfamily

If I could sell my house for what the muni claims it is worth...SOLD!

Really? My house is "valued" by the muni at about $40K under market. Not that I'm complaining.

I think it's only a matter of time before the Valley bubble bursts and it's going to be just as expensive to live there, with still no place to work and still the necessary commute.

Honestly, I think SC Alaska is just "over." You have to live out to enjoy Alaska anymore, and unless you can support yourself out there, you're out of luck. Too many newcomers, too much overdevelopment, too many greedy DC politicians (and I am referring to ALL of them).

[mizzile]

Originally Posted by highlife2

There is only so high property or rent can rise in anchorage before the economy completely falls apart. If my total housing costs ever exceeds 1/4 of my net even living in dicy areas then its time to negotiate a huge raise or its time to go. I have been burned a few times so I am not so willing to leverage myself out again.

Ha. Say that to anyone who owns property in Aspen, Park City, Girdwood, or on the Anchorage Hillside...those properties are cash cows and are NEVER going to lose their value. Anchorage gentrification is rollling strong with an unstoppable head of steam. Own a place here already, and you're in good shape! Looking to buy now...good luck.