[pianogal]

That is terrible! But why 3,000 for a 240,000 house? Even if he didn't make any down payment his PI would only be around $1450.00 unless he got an awfully high interest rate. Are his taxes and insurance running $1500.00 a month on a $240,000 house? That is incredible!

[Christian11]

Originally Posted by pianogal

That is terrible! But why 3,000 for a 240,000 house? Even if he didn't make any down payment his PI would only be around $1450.00 unless he got an awfully high interest rate. Are his taxes and insurance running $1500.00 a month on a $240,000 house? That is incredible!

I don't know the specifics, I just know they paid $3,500 in property taxes. Their HOI must be through the roof. Also, their montly payment on the actual loan is quite high (100% loan, no down payment).

The other issue is the Home owner's association fees, which keep going up. They don't include anything in the HOA fee, and the green areas are very poorly kept.

Nothing special about this guy's house, it is simple, yet they are putting out $3k a month for their little "neck of the woods".

I told him that taking a job outside FL would be better for him. Now he is suffering and need to sell the house and can't. He and everyone else needs to understand that the middle class does NOT belong in the current skyrocketing FL prices and low wages. Middle class doesn't belong here anymore at all.

Chris

[pianogal]

If they didn't have a downpayment then they would have either had to take out a second for the downpayment or pay mortgage insurance - that could significantly increase their monthly pay. Wonder why they would buy a house with no down payment...I agree that is definitely living on the edge. In that situation it seems much better to rent.

DH and I worked and saved for several years to save up enough money for the downpayment on our first home. It wasn't easy - we even lived with his parents for awhile to be able to save more. We were still working and saving while most of our friends had already purchased a home, but it paid off in the end.

[Christian11]

Originally Posted by pianogal

If they didn't have a downpayment then they would have either had to take out a second for the downpayment or pay mortgage insurance - that could significantly increase their monthly pay. Wonder why they would buy a house with no down payment...I agree that is definitely living on the edge. In that situation it seems much better to rent.

DH and I worked and saved for several years to save up enough money for the downpayment on our first home. It wasn't easy - we even lived with his parents for awhile to be able to save more. We were still working and saving while most of our friends had already purchased a home, but it paid off in the end.

They did an 80/20 loan, so there is no Private Mortgage Insurance (PMI). The 2nd loan is higher though.

Now on their income, they could get a much nicer place for much less money in Gainesville or southern Georgia. It is because they wanted to be subborn and stay in orlando that they are on the edge now.

If you see that it will be hard to pay your mortgage, you have 3 choices:

1. Overextend yourself and buy or rent something you know you can afford and have ulcers for the next 10 years.
2. Move outside the city and commute for 1 - 2 hours a day.
3. Move somwhere else.

I have taken option 3. Very happy I did.

Chris

[pianogal]

I am very happy you have found what works for you. I hope you find exactly what you're looking for in your new city. Thanks for the dialogue.

[bap64]

Christian, I hear yah. I'm working on #3 myself...keep me in your prayers.

[wacahootaman]

Property taxes are the most unfair taxes of them all. That is because they are not based on your ability to pay like income taxes or even sales taxes. If you have a bad year you will owe the IRS little or nothing, but the property taxes are due regardless of your income, health problems etc.

In California the property taxes are capped at 1 percent of value. Most Florida counties are double that rate. Because of the recient run up in land values the counties are awash in property tax money. Many have huge surplusses. They could cut their milliage rate without cutting spending in most cases but they wont.

Not until there is a tax revolt in Florida. 2008 will be the perferct time to put property tax roll back items on the ballot like raising the homestead exemption to 100k to give the current 25K exemption the value it had in 1981 when it was first enacted.

TAX REVOLT! TAX REVOLT!

[wacahootaman]

Prop 1 percent. A movement to cap Fla property taxes at 1 percent of assessed value.

check it out:

Moderator cut: link cut

[Christian11]

Originally Posted by bap64

Christian, I hear yah. I'm working on #3 myself...keep me in your prayers.

I will, that is for sure. We are obviously very anxious to get the move going, March is not getting here fast enough, but at the same time, there is the element of tension.... fear of the unknown. I guess that is supposed to happen, but it is not plesant.

But the way we see it, if we don;t take the chances and move now, then we are toast, things will continue to get worse and worse. I got a quote to renew my Renter's insurance and it will go up $200 MORE than I paid last year.

Rent... hah! I don't want even to think about it. Buying? Yeah, only if prices go back to the $180's... otherwise, we would ahve to be strapped for cash forever and take out a risky mortgage!

[mbmouse]

Originally Posted by puddlejumper101

I just read the thread of the outrages property taxes. I do have a question...what kind of property taxes are people seeing in Orange and Seminole County by Orlando? Just curious since I am contemplating moving to that area. Something else to keep in mind is there is no State Tax in Florida. While property taxes might be lower all over the country the difference is made up in the State Tax. FL, TX, and TN all have high property taxes...but neither of the 3 has a state tax...it might just be a wash. I do want to know on average what Orange and Seminole county taxes are like.

Sorry, have to disagree with you here...in TN property taxes are DIRT cheap! I moved to TN from Fl 10 years ago. In Jupiter in 96 I paid $1100 a year ( can not imagine what they would be today!) for a shoe box on a postage stamp lot. In TN I paid $280 (no, not a typo) for a 2 story house, 3/4 acre, great school district, great neighborhood. No State income tax, ya got that right and expenses overall are MUCH cheaper. Downside: 9.75% sales tax even on food. But property taxes, insurance and over all cost of living are CHEAP! No ocean, but nice lakes.