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Old 06-18-2016, 07:25 PM
 
1,089 posts, read 1,848,454 times
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Quote:
Originally Posted by Taco1234 View Post
We're on 7th ave... Our neighbors bought their home for 890 in 2012 and their 2016 taxes are 23,900! I looked it up on cook county tax assessor page.

It's crazy. Paying almost 25k a year just to live on land?! That seems insane to me... And we have great secure jobs... I only work part time and could feasibly double my income by taking on more patients... I just don't want to spend 6k a month bc of dumb taxes. It's totally nuts to us!
What is your guess as to what the house is worth now?
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Old 06-18-2016, 07:45 PM
 
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Taco, where in detroit (thats a key point) --- we discussed this before. We did great in detroit by surgically picking right location...
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Old 06-18-2016, 11:04 PM
 
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Default Detroit Out of the Woods?

Quote:
Originally Posted by JJski View Post
Taco - im originally from detroit. I experienced the city bankrupcy first hand. The breaking point i believe you are thinking... This set legal precedent for other gov entities heading in that direction. It will ravage the pension holders if they go that route. There is a point where that becomes only option but i dont think chicago is there yet. IMO its a world class city and when compared to NY we are still cheap COL.

In detroit post bankrupcy after expenses (such as pensions) got wiped from balance sheet prices skyrocketed. The people that sold in fear of total meltdown messed up/missed out... Ask anyone still living in Detroit...

The moral of the story --- don't try to catch a falling knife.... And Buy in the right Location, Location, Location....

13,000 to 18,000 on 800,000 home is 1.6 to 2.0% --- the % most would say is reasonable... We pay about 1.9% living in LG now on our sfh right downtown...


I've also lived in Detroit MSA (not Detroit proper) but worked downtown at the Ren Cen. I don't think Detroit (the city of) is totally out of the woods yet. I didn't hear that "expenses (such as pensions) got wiped from balance sheets". City is still on the hook for the pensions. The bond holders got a haircut and the pensioners got a haircut but they still are all owed payments. The people in the city of Detroit who were smart, got out in the 1960's. I am guessing you did not actually live in the city of Detroit and wherever you bought did not have the financial issues of Detroit? Here is the thing, municipality and state lines do matter. Pension deficits do matter. Taxes do impact homes prices b/c at the end of the day you can only afford to pay a certain monthly amount and one cost will impact the other.


One needs to consider potential tax increases (more likely in IL than other states) when determining how much to spend on a house IMO. Don't reach too much.
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Old 06-18-2016, 11:18 PM
 
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Default Hinsdale Cook vs. DuPage Co

Quote:
Originally Posted by Taco1234 View Post
Also, my husband's mom and whole family are from Detroit area. Affluent burbs... His one aunt and husband retired last year and sold their family home that they bought in the 70's and had renovated over the years. It was a beautiful home... Anyhow, they basically broke even when they sold it. Maybe made 20-30k (I forget)... But it was ridiculous.

My husband always says: nobody thinks twice about the investment that buying a house is... And how many people are underwater, or on the verge of foreclosure. What if we buy something for 700k and in a few years it's worth half? Doesn't anyone consider that? Seems like everyone is living in a fantasy land.

We're honestly leaning towards hinsdale (if we can force ourselves to commit) bc many of the homes we're seeing in 7-800 range have taxes around 10k. In Glen ellyn, elmhurst, LG, WS taxes are crazy (IMO). I just refuse to pay 15-20k in taxes.


Are the houses in Hinsdale you are looking at in Cook County? I would venture to guess that taxes in Cook will go up more than DuPage in the future. Would be good to know more about Cook vs. DuPage fiscal health before you decide which side of the line to live on.


Although pricey, the nice thing about Hinsdale is that it has good mass of wealthy people which will keep schools well funded and be able to absorb tax increases (more disposable income). Also with teardowns and thus property values rising through redevelopment, the overall tax rate should remain lower compared to other IL towns (assuming all other things held equal).


I know, taxes can be crazy and the cost of home ownership should definitely be considered carefully. I feel that too many people just go to the lender with their W-2, are told what they can afford and then go shopping! They don't think about the risk in real estate. And there is risk. My hubs and I ended up buying something way lower than what we could have b/c we didn't want the risk. And we moved to NWI to mitigate the whole IL fiscal issue altogether. If we stayed in IL, we would have had to up the ante a bit but still would have played it safe. Everybody has a different risk tolerance.
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Old 06-19-2016, 01:00 AM
 
335 posts, read 330,676 times
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In hinsdale, yes I steer more towards the homes on Dupage side... Don't get me wrong, some still are 12-15k, but I've seen quite a few under 10k... Seems like a steal (eye roll). We're all over. I'm a home health therapist and see clients wherever I want (but I've established myself around dupage and north suburbs). I can change my work locations as I move, so we are looking at Wheaton, Glen ellyn, elmhurst, all along BNSF, etc... My husband works in city, so he loves the quick train ride from La grange.
Yes, I agree... People don't take it seriously. We could probably go up to 900k... That would still be within 30% rule for us. I just think that's bonkers though. I'm not sure if it's just the concept of paying that much (when we're literally never home) or just having friends/family all over country and knowing what they pay. Heck, forget all over country! I have a close friend in Frankfort and I want to cry when I see what you can buy for 550k in the Orland area

https://www.redfin.com/IL/MOKENA/119...home/105329035

^^ that blows my mind!

As far as my husband's aunt/uncle in MI, they lived in Beverly Hills.

Yes, it's scary. We don't have a fixed income, so IF taxes shot up we could make it work, but I still hate the idea! We now have serious phobia about buying. Despite high credit, 20% down and secure jobs... We really worry about buying in IL. I truly don't want to keep moving around tho. It's hard! 5 years ago I wouldn't have thought twice, now I contemplate everything ��
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Old 06-19-2016, 07:09 AM
 
768 posts, read 1,092,111 times
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Jvr --- it was pennies on a dollar (16cents in some cases if i remember right) - a little more than a haircut. The city is booming now - you have to agree : it helped save Detroit. All of the apocalyptic doom gloom (sim to what we see here today) visions are now gone. Everyone is fighting to buy or even rent in the D. I still keep an eye on the freep - and its refreshing to watch. I totally agree not out of the woods but they have more than a fighting chance if managed right going forward... we lived in northville, right downtown.

Taco, Beverly hills is affluent but like a tiny burr ridge with no downtown. Would you (or most people) move to a tiny burr ridge here? Is it even that desirable anymore - look at all the stale mansions... We once moved from our typical (beloved downtown centric locations in MI) to go the "bigger bang for buck" to Canton, MI. Still affluent, 30min drive to a real downtown(plymouth) and barely broke even. Micro Location, location, location matters now a days in real estate. This is all just my oppinion and following the simple micro location formula (what we used) has allowed us to move up to where we are now.

I cant really comment on NWI - we never looked here. It seams too good to be true (price/tax)...

I think it all boils down to following "realistically, not what mortgage comp says" what you can afford with your lifestyle in combination with your personal risk tolerance as soneone earlier said - the people that think you cant lose in real estate (even in good times) are nuts to me - nothing is guaranteed... But we are more comfortable with 1mil invested in right micro location over the stock market in our case.

Last edited by JJski; 06-19-2016 at 08:33 AM..
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Old 06-19-2016, 07:21 AM
 
768 posts, read 1,092,111 times
Reputation: 370
PS
Taco, when we moved here we looked at Hinsdale. The micro location we wanted to be in there were going more like a staggering 600K a tear down. Hinsdale has a large foot print... You pay the big $$$ one way or other in the surgically picked (ultra premium) desirable areas of Chicagoland closest to big city.

Jvr, we also paid 2.5% in northville, very well run, conservativelly managed, solid books town as you know - we have 1.9% in LG now.

Last edited by JJski; 06-19-2016 at 08:44 AM..
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Old 06-19-2016, 10:54 AM
 
1,851 posts, read 2,150,475 times
Reputation: 1283
Quote:
Originally Posted by Taco1234 View Post
Also, my husband's mom and whole family are from Detroit area. Affluent burbs... His one aunt and husband retired last year and sold their family home that they bought in the 70's and had renovated over the years. It was a beautiful home... Anyhow, they basically broke even when they sold it. Maybe made 20-30k (I forget)... But it was ridiculous.

My husband always says: nobody thinks twice about the investment that buying a house is... And how many people are underwater, or on the verge of foreclosure. What if we buy something for 700k and in a few years it's worth half? Doesn't anyone consider that? Seems like everyone is living in a fantasy land.

We're honestly leaning towards hinsdale (if we can force ourselves to commit) bc many of the homes we're seeing in 7-800 range have taxes around 10k. In Glen ellyn, elmhurst, LG, WS taxes are crazy (IMO). I just refuse to pay 15-20k in taxes.
Of course it is considered. Your husband is stating the obvious here. You could pump 200k into the stock market and lose it all. RE is typically a fairly safe place to keep your money.

Regarding your husband's family - metro Detroit is a completely different market than Chicago. Even then, to own a home for thirty+ years and make money selling is better than renting for thirty+ years and having nothing to show for it.
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Old 06-19-2016, 06:17 PM
 
335 posts, read 330,676 times
Reputation: 258
Quote:
Originally Posted by IrishIllini View Post
Of course it is considered. Your husband is stating the obvious here. You could pump 200k into the stock market and lose it all. RE is typically a fairly safe place to keep your money.

Regarding your husband's family - metro Detroit is a completely different market than Chicago. Even then, to own a home for thirty+ years and make money selling is better than renting for thirty+ years and having nothing to show for it.
Well yes, no desire to rent for 30 years.

That's just it though, RE no longer seems like a safe place for money. That's what is frustrating. Prices will likely come down if taxes shoot up 10-30%. I don't see how they won't. Could be a huge loss for many people. I see tons of listings in various areas with much lower sales prices than previous purchase price. It's scary.
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