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The way the OP feels is how I felt in 2006 or so. For every dollar I saved in 2006, it seemed like the housing market went up by 2 dollars. We might be in a housing bubble again. I'm not sure to be honest. The housing market doesn't seem to be growing at the same speed as last time.
it's not.
the total % rise in the last 8 years (early 2012 bottom) is ~ 60% until the pandemic (confirmed figures; and yes, prelim say a 10% rise since March which is nonsensical given the pandemic economy)
the total % rise in 5.5 years from end of 2000 recession to summer 2006 was 59%.
However, it wouldn't necessarily be income and/or age based. In my area, the largest percentage of my property tax is school tax. So homeowners would be eligible for an annual rebate on these taxes based on the increased tax base due to higher-density housing. THe amount of rebate would be subject to change based on the budget. Note the NJ rebate program is not available to rental/ investment properties.
THe concept is that existing primary homeowners would financially benefit from higher-density housing via the tax rebate program.
THe issue becomes is the local government willing to issue rebates vs. a tax revenue grab?
is the potential issue that a densely-developed parcel increases the property value for the single family home next door?
By your link, this rebate/benefit is a small % and income based. And age-based. It doesn't seem to have anything to do with density/development/property value today - unless density has dropped value since 2006. It's like a "poor man's homestead exemption" for 65+ (some places just fix your value at 2006, for example) and a component for long-time owners that are lower-income.
I *hear* that NJ has ever-increasing taxes, to the point that for anyone, 2020 taxes are much higher than 2006. It looks like Morris Co, for example, taxes ~ 2.5% on average. With a median value today of $450K+, you'd be paying taxes of $11K+ ... so a 4% benefit from the rebate.
Americans are generally offered "used" houses built and designed to appeal to the lowest common denominator, constructed of builder grade schlock, and overpriced.
How over priced?
Make a tally of the raw materials, and you can see.
The following guesstimate is a modest 36' square floorplan, dry stacked, surface bonded concrete block structure, with a flat concrete roof deck.
36 X 36 X 2 STORIES
2592 SF (+ ROOF DECK)
CONCRETE BLOCKS = 4 X 28 X 25 = 2,800; @ $1.2 EA = $3,360
CMU : 1.3 x .67
SURFACE BOND CEMENT = 47.4 X 50 LB BAGS: @ $31.95 EA = $1,514.43
(You can get the original recipe from the USDA booklet - available on the net - and mix your own bonding cement)
2 FLOORS + ROOF DECK = (3) X 36 X 36 X .3; 1166.4 CF; 43.20 CY @ $90/CY = $3,888 (for 4" thick concrete slabs)
: : : :CLOSING IN
. . . . . 2 EXTERIOR DOORS Masonite 32 in. x 80 in. Utility 6-Panel Right-Hand Inswing Primed Steel Prehung Front Exterior Door with Brickmold $175 EA. ($350)
. . . . . 16 WINDOWS 46.25 in. x 21 in. Large Hopper Ranch Vinyl Window $118 ea.($1888)
ROUGH TOTAL = $11,000.43
Yes, this is only a rough guesstimate for the SHELL. Your final costs will reflect your own tastes. But building the house yourself will save a bundle.
(Starter Homes range from $120k to $250k, depending on market)
Also, don't forget to check out the legal differences between absolute ownership of private property versus qualified ownership of (taxed) real estate. Build tax exempt, if you wish to.
DC officially dropped like a rock (32%) beginning in April 2006 but started back up basically when Obama took office (April 2009) - a large new crop of "politicians" moved in, but just starting recovery that quickly while the rest of the nation went down is surprising. Even LA & San Fran (and "all R/E starts in CA") bumbled along until spring 2007.
I did refi once, But that was nine years ago so it’s been a while. But yours is a good suggestion and I will look into it. Thank you! My current rate is 3.775% for 30 year fixed.
Originally Posted by scarabchuck
Same here in the metro Detroit area. We sold a nice 1000 sq ft starter home last year for $145k. It needed a few minor cosmetic things. It had new windows, furnace/air, and roof.
Yeah, sorry. Minimum wage job earners are going to have a hard time with that . More incentive to attain a skill.
So, I thought we were talking about minimum wage earners....now it's young professionals and couples. My mistake.
Oh, now I see. Yes, minimum wage earners are not likely to be homebuyers. Ever. Never were meant to be.
I assume you've participated in MW discussions too - there's an incredibly small% of the FT workers (<400K of 180MM) who only earn minimum wage.
Over many decades, we've found homeownership peaks at ~ 65%. About 1/3 of households cannot handle ownership, for whatever reason - income, job stability, location stability, budgeting, repairs/etc. Somebody said in this thread they couldn't hang a towel bar.
Agreed. It is unfortunate for them though, they will miss out on a lot of wealth building.
the simple answer is to budget (save) 1% of your home's value every year for repairs and maintenance. Too many people don't want to do that. Because even then, over 10 years, you've probably saved a LOT more than you've spent.
Americans are generally offered "used" houses built and designed to appeal to the lowest common denominator, constructed of builder grade schlock, and overpriced.
How over priced?
Make a tally of the raw materials, and you can see.
The following guesstimate is a modest 36' square floorplan, dry stacked, surface bonded concrete block structure, with a flat concrete roof deck.
36 X 36 X 2 STORIES
2592 SF (+ ROOF DECK)
CONCRETE BLOCKS = 4 X 28 X 25 = 2,800; @ $1.2 EA = $3,360
CMU : 1.3 x .67
SURFACE BOND CEMENT = 47.4 X 50 LB BAGS: @ $31.95 EA = $1,514.43
(You can get the original recipe from the USDA booklet - available on the net - and mix your own bonding cement)
2 FLOORS + ROOF DECK = (3) X 36 X 36 X .3; 1166.4 CF; 43.20 CY @ $90/CY = $3,888 (for 4" thick concrete slabs)
: : : :CLOSING IN
. . . . . 2 EXTERIOR DOORS Masonite 32 in. x 80 in. Utility 6-Panel Right-Hand Inswing Primed Steel Prehung Front Exterior Door with Brickmold $175 EA. ($350)
. . . . . 16 WINDOWS 46.25 in. x 21 in. Large Hopper Ranch Vinyl Window $118 ea.($1888)
ROUGH TOTAL = $11,000.43
Yes, this is only a rough guesstimate for the SHELL. Your final costs will reflect your own tastes. But building the house yourself will save a bundle.
(Starter Homes range from $120k to $250k, depending on market)
Also, don't forget to check out the legal differences between absolute ownership of private property versus qualified ownership of (taxed) real estate. Build tax exempt, if you wish to.
whoever wrote this needs to educate themselves a lot more. It's unclear from the 2 odd sources that you quoted. Nevermind it doesn't include systems (plumbing, heating, electrical) or labor, it also doesn't ponder structural needs.
is the potential issue that a densely-developed parcel increases the property value for the single family home next door?
By your link, this rebate/benefit is a small % and income based. And age-based. It doesn't seem to have anything to do with density/development/property value today - unless density has dropped value since 2006. It's like a "poor man's homestead exemption" for 65+ (some places just fix your value at 2006, for example) and a component for long-time owners that are lower-income.
I *hear* that NJ has ever-increasing taxes, to the point that for anyone, 2020 taxes are much higher than 2006. It looks like Morris Co, for example, taxes ~ 2.5% on average. With a median value today of $450K+, you'd be paying taxes of $11K+ ... so a 4% benefit from the rebate.
You're getting too into the weeds vs. the concept. It has nothing to do with the specifics of NJ taxes.
The concept is that densely populated housing increases the tax yield per acre. With this increase in tax yield, an amount can be returned to tax payers in the form of a rebate.
The idea is to overcome resistance to zoning rules by providing some financial incentive. NO your property taxes will not increase, in fact, you may get a rebate.
You're getting too into the weeds vs. the concept. It has nothing to do with the specifics of NJ taxes.
The concept is that densely populated housing increases the tax yield per acre. With this increase in tax yield, an amount can be returned to tax payers in the form of a rebate.
The idea is to overcome resistance to zoning rules by providing some financial incentive. NO your property taxes will not increase, in fact, you may get a rebate.
Any increase in population density overwhelms local government services (public schools, police, EMTs, etc., etc.) If anything, higher population density areas need to pay MORE in local property taxes, not less.
Any increase in population density overwhelms local government services (public schools, police, EMTs, etc., etc.) If anything, higher population density areas need to pay MORE in local property taxes, not less.
Not necessarily commensurate with the yield on taxes per acre. Every area has certain fixed costs vs. variable. Many existing homeowners no longer have school aged children yet continue to pay increased school taxes. Many new homeowners are childless.
I don't care to argue the specifics but, again, the concept is to get people to vote in a change, it has to be in their financial interests.
The problem is tax revenues increase but local governments become more bloated or enrich themselves rather than provide a tax rebate.
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