2023 Real Estate Observations (Natick, Hanover, Norwell: lenders, purchase, tax)

[MtPleasantDream]

Originally Posted by newenglandgal123

In addition to not being able to afford taxes, I see lots of homes with deferred maintenance so it seems many who are perhaps townies can no longer keep up with replacing the roof, fixing the faded, peeling siding, etc.

Yeah there is a historic home near where I live, built in the 1800s. It is a beautiful and unique architecture, but now has peeled façades and collapsing gutters etc.
A lot of people still live there, because I often see 3~4 cars.

[simplexsimon]

Originally Posted by MtPleasantDream

California has a proposition 13:



This is a way to protect old residents (or to rob new residents). In fact, some million dollar houses are only taxed a few hundred dollars per year.
Do you think Massachusetts should have something like this? I can foresee some "townies" will not be able to afford the taxes in the future.

Nobody likes paying taxes and high inflation is evil, but there needs to be some flexibility. Based on how MA's schools and towns are funded, something like Prop 13 would crush them over the long term.

[GeoffD]

Originally Posted by MtPleasantDream

In certain towns, some people may have purchased/inherited their home before gentrification, and their wage or pension may not be able to support high taxes.

In my Proposition 2 1/2 universe, I don't see that since, on average, tax hikes are kept to 2 1/2%. Are these towns that are voting for overrides?


The houses around me with poor maintenance tend to be elderly owners. I hope to live long enough in my house to be one of those.

[MtPleasantDream]

Originally Posted by GeoffD

In my Proposition 2 1/2 universe, I don't see that since, on average, tax hikes are kept to 2 1/2%. Are these towns that are voting for overrides?


The houses around me with poor maintenance tend to be elderly owners. I hope to live long enough in my house to be one of those.

It's not so much about the tax rates, but the estimated value which has increased from $200K to $1M, for example.
In California, the assessment value is basically the sold price, even if it was sold 30 years ago.

[GeoffD]

Originally Posted by MtPleasantDream

It's not so much about the tax rates, but the estimated value which has increased from $200K to $1M, for example.
In California, the assessment value is basically the sold price, even if it was sold 30 years ago.

Due to Proposition 2 1/2, my town keeps cutting the tax rate. Unless the town keeps voting for overrides, that should be the case, on average, everywhere.

[MtPleasantDream]

Originally Posted by GeoffD

Due to Proposition 2 1/2, my town keeps cutting the tax rate. Unless the town keeps voting for overrides, that should be the case, on average, everywhere.

If you check the tax history of any random house in Massachusetts, the property tax keeps increasing almost every year, even if the tax rate is being cut. A million-dollar house typically requires $9k tax now, depending on the town.

In California, however, sometimes the tax can be lower than $1k for such a house, if the owner has been there long enough.

[MikePRU]

Originally Posted by MtPleasantDream

If you check the tax history of any random house in Massachusetts, the property tax keeps increasing almost every year, even if the tax rate is being cut. A million-dollar house typically requires $9k tax now, depending on the town.

In California, however, sometimes the tax can be lower than $1k for such a house, if the owner has been there long enough.

That's probably why the state of California is in such a mess financially.

[gf2020]

Originally Posted by GeoffD

In my Proposition 2 1/2 universe, I don't see that since, on average, tax hikes are kept to 2 1/2%

That's not how Prop 2 1/2 works.

Prop 2 1/2 just states a community's overall tax levy - outside of new growth - can not increase by more than 2.5% per year. An individual property owner's taxes could easily increase by 3%, 5% or more, depending on changes in assessment, tax rate, debt exclusions, etc.

[GeoffD]

Originally Posted by gf2020

That's not how Prop 2 1/2 works.

Prop 2 1/2 just states a community's overall tax levy - outside of new growth - can not increase by more than 2.5% per year. An individual property owner's taxes could easily increase by 3%, 5% or more, depending on changes in assessment, tax rate, debt exclusions, etc.

Which is why I wrote “on average”. If my taxes go up, someone else in the town had their tax bill cut. Without an override, the average hike is going to be 2 1/2%. I’m fortunate that I live in a town with oceanfront properties and gated summer communities. Nonresidents who have seen their valuations spike with the demand for that kind of property. My average has been less than 2 1/2%. I picked the town and the location within the town partly for that reason. I know I won’t get taxed out of my house and the history of overrides here is that they only pass for police/fire and replacement schools. With enrollment down due to the very low birth rate, there’s not much demand for replacement schools.

I know people in other states who have had their property taxes double because they don’t have the Proposition 2 1/2 fiscal controls. Nobody in town government wants to stand up to the public sector unions. Here, it requires an override and comp has to be really out of alignment with the private sector for that to pass an election.

[yesmaybe]

https://www.redfin.com/MA/Quincy/162...9/home/8924525

SFH that sold in Quincy for 670k a couple days ago. Man, 670k and they got to do some work plus it requires flood insurance. That wallpaper has got to go.

Amazing location though.