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Old 12-31-2008, 09:34 AM
 
28,453 posts, read 73,563,601 times
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Unless things are DRAMATICALLY different in Florida (and I don't think they are) a UNIFORM reduced pool of property would NOT result in anyone truly saving money on taxes. There is the "assesor" but also the "levy". The thing that matters is that the LEVY is met by setting a RATE that multiplies the ASSESSMENT so the amount of TAXES COLLECTED remains the same.

If the ASSESSED values fall to half the MILLAGE simply DOUBLES...

FL Dept Rev - Florida Property Tax Definitions
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Old 12-31-2008, 10:37 AM
f_m
 
2,289 posts, read 7,655,047 times
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Quote:
Originally Posted by tallrick View Post
This is the important point. The lower your lease to the Government, the more of the property is yours. In some areas a homestead exemption exists and if property value goes below it no tax will be owed. Personally I cannot see any downsides to median property being 3x median income or less. Ideal situation would be 20% down, 3X income principal, 10% or higher interest rate. Few could buy so prices would drop, reducing taxes and increasing affordability. The only losers would be real estate speculators, who deserve to lose anyway.
Not exactly sure what you mean, but it depends on the state laws. In CA they cannot raise the property tax except by a very tiny percentage or unless the property is sold. So reducing values would only cause the CA state income from property tax to plummet.

Ideally, the property tax should be higher, but with a lower value of property, so the overall cost is still lower, but the tax revenue is also higher.
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Old 12-31-2008, 01:00 PM
 
Location: NJ/NY
13,225 posts, read 11,050,657 times
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I dont think the OP's general idea is faulty. It's just a little too much, too fast. Lending standards do have to be tightened up, but such a drastic change in such a short period of time would be very dangerous. Drop housing prices too quickly, and even people who can afford their mortgage will start walking away from their commitment. If a guy spent $500K on a house that is now worth $250k, he's going to start thinking about walking away regardless of the credit ramifications. When THAT happens, we are REALLY in trouble.
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Old 01-03-2009, 05:37 PM
 
16,308 posts, read 25,587,024 times
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Quote:
Originally Posted by HSVbulldawg View Post
Actually, this is exactly what we need.


They are waaaaaaaaaay over priced!
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Old 01-03-2009, 07:47 PM
 
537 posts, read 1,501,367 times
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Here is a pretty shocking story that is somewhat related to this thread. It is about a woman who took out a 103,000 mortgage on a little shack. The slide show is pretty shocking.

Would You Pay $103,000 for This Arizona Fixer-Upper? - WSJ.com
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Old 01-04-2009, 01:44 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
24,643 posts, read 42,316,971 times
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Quote:
Originally Posted by chet everett View Post
Unless things are DRAMATICALLY different in Florida (and I don't think they are) a UNIFORM reduced pool of property would NOT result in anyone truly saving money on taxes. ...
If the ASSESSED values fall to half the MILLAGE simply DOUBLES...
same here in WA....

lower values mean higher Mill Levy... the Gov will get theirs (I pay $33 / day property taxes for a joint I built for $120k). My land cost me $22k, but it is currently assessed at $300k (just the dirt !). Fair market Value... so they say. I've fought it in court, but they reduce it a tad, then gouge me the next year...
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Old 01-04-2009, 03:28 AM
 
542 posts, read 1,317,980 times
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Quote:
Originally Posted by unseengundam View Post
I think it is absolutely bad idea loosening mortgage restriction. In fact, I think we highly tighten up with income rations, higher down payments, type of loans, etc. The result of this would force homes price to become more affordable. Here my idea about mortgages:

Require 33% debt to income Ratio

Down payment in CASH (no piggyback loans). Here what I think down payment should be depending on price of the house:

Less than 100K - 10% down payment (include FHA/VA)
100k+ to 200k - 20 % down payment
200k+ - 300k - 30 % down payment
300k+ - 400k - 40 % down payment
500k+ - 50 % down payment

FHA and VA (HUD) - Should be capped at 200k loan for ALL across the US. Furthermore, the down payment should be raised to 10%.

Next requirement, is borrower MUST have 3 months of emergency cash (liquid) reverse after down payment and closing cost are down. This will ensure if they lose job they can keep on paying for awhile at least.

ARMs should be eliminated and Fixed loans should be allowed.


What these policies should do is guarantee people can actually afford the house they buying. Especially on the higher priced housing. People won't go around defaulting on their houses like they are doing now.

It will drive down all the overpriced housing. I believe this should lower median house price to under 200K all across the USA; Since it will be harder to buy house over 200k due higher down payment. This exactly what need to happen, houses need to affordable and people who actually pay the mortgage should be able to buy the houses!

i believe this is a fantastic idea. although i'm assuming a lot of folks don't feel that way.
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Old 01-04-2009, 07:14 AM
 
Location: occupied east coast
886 posts, read 2,023,496 times
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Quote:
Originally Posted by f_m View Post
Not exactly sure what you mean, but it depends on the state laws. In CA they cannot raise the property tax except by a very tiny percentage or unless the property is sold. So reducing values would only cause the CA state income from property tax to plummet.

Ideally, the property tax should be higher, but with a lower value of property, so the overall cost is still lower, but the tax revenue is also higher.


Look, While I do not like politicians, they are not stupid.

If the tax base were to collapse, they would simply amend the law and allow for higher taxes.

If for the sake of argument, you pay $3.00/ thousand now, and the value of the house were to drop in half, the law would simply be amended to reflect a tax rate of $6.00/thousand.

Regardless of weather you live in a large city or a small town, the government NEEDS a certain amount of money to operate. There is a particular number of properties that pay taxes, therefor each property is responsible for a particular amount of its "share".
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