Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
A lot of articles and stats indicate wealth in terms of household income. Others focus on "absolute" wealth which is in terms of assets minus liabilities. This has been discussed at length in many threads in this forum. I read two recent articles that indicates wealth in terms of household income.
Of course if they adjusted for cost-of-living, the numbers would have different meanings.
I think that is just relative to that study, but most articles like the ones in the Washington Post are going to base their figures on Census data, which used median household income as a measure of what is "wealthiest". If there is anybody to blame here, blame the Census for it's terminology. Calling a place wealthy just because it has high income is a misnomer, not only because what Armory has mentioned but also it doesn't take into account the cost of living. There are people who proportionally have more disposable income in different regions compare to here, so then the question becomes what are we really measuring? Real wealth would not lead to the situations we have presented here, so I think the word has been used a little too loosely where it has lost it's true meaning.
I think that is just relative to that study, but most articles like the ones in the Washington Post are going to base their figures on Census data, which used median household income as a measure of what is "wealthiest". If there is anybody to blame here, blame the Census for it's terminology. Calling a place wealthy just because it has high income is a misnomer, not only because what Armory has mentioned but also it doesn't take into account the cost of living. There are people who proportionally have more disposable income in different regions compare to here, so then the question becomes what are we really measuring? Real wealth would not lead to the situations we have presented here, so I think the word has been used a little too loosely where it has lost it's true meaning.
Lost it's meaning doesn't begin to tell the tale. Most people would believe one to be wealthy if they saw a roll of $1 bills topped by a $100 bill. It's one of the oldest tricks in the books used when trying to impress others. Unfortunately, others believe what they see. Enough believe to the point they will attempt to take it from you. The same deception can be said for 5 figure paychecks, no one sees the depleted bank account the check is deposited into.
If someone living in Bunghole, WV was earning the same 6 figure salary many federal employees do in this area how far would his paycheck go in the depressed economy there? The COL is far below what is here and said person is probably the highest salaried individual in town. Is that person wealthy, lucky or wise? More of the disposable income can be invested for the future so wealth can be realized in a few years but, what if the 5 figure paychecks go away?
Sure there is still the 6K sq ft house on 10 acres but if the mortgage/utilities aren't being paid is that person now one of the impoverished if annual income dropped to the average < $25K representative of the area? Is that person nothing more than a bum now?
What are we measuring? Over the top earning potential for positions which could be filled by 1000s of individuals across the country or one's accrued holdings?
Who are the 1000s of individuals across the country? How about 1000s of college grads who cannot find employment? Most of them could walk right into a federal position tomorrow as easily as they could any office environment. Ask a federal employee how tough their job is. Most of it is CYA or PC awareness. I have never met people with such 1st world woes.
Not all fit that mold but you might think you were speaking to night stockers at Walmart when speaking with most.
Nick Charles, an Air Force veteran who ran unsuccessfully for a seat in the House of Delegates in last year’s Democratic primary, said appraisers are part of the problem.
“When you have people outside coming into a community to appraise homes where they don’t live, it’s like having someone criticize your parenting without having any knowledge of what goes on inside the home,” he said.
So your declining home values are a result of appraisers not living in the county?
Quote:
“The fact is our homes are being valued by people who need to be held accountable,” he said. Investors, meanwhile, have flocked to the county to buy dirt-cheap real estate.
Nick investors help stabilize the values in these neighborhoods.
Quote:
One of the more popular ideas expressed in the meeting was to urge lawmakers to impose a moratorium on housing construction until the county’s glut of foreclosed and bank-owned homes is reduced.
“If you’ve got inventory, why keep building?” said Glenn Ivey, a former Prince George’s state’s attorney whose wife, Jolene Ivey, is a former delegate who ran for lieutenant governor in the Democratic primary.
I understand the impulse but trust and believe developers won't build if the conditions aren't fortuitous for them to do so.
Quote:
Aisha Braveboy, a lawyer, former delegate and unsuccessful candidate for attorney general, suggested that the county government could help pay down mortgages. That would keep families in their homes, paying taxes and maintaining properties that could later be sold at decent prices, she said. “We can’t afford to lose our communities, lose homeowners and lose wealth.”
LOL let's pay off everyone's mortgage! Great idea.
Aisha Braveboy, a lawyer, former delegate and unsuccessful candidate for attorney general, suggested that the county government could help pay down mortgages. That would keep families in their homes, paying taxes and maintaining properties that could later be sold at decent prices, she said. “We can’t afford to lose our communities, lose homeowners and lose wealth.”
Quote:
LOL let's pay off everyone's mortgage! Great idea.
That would still have worked out better than just giving money to the banks (with the stimulus program), who just sat on it. The banks would have ended up with the money anyway, but at least people would not have continued to lose their homes.
That would still have worked out better than just giving money to the banks (with the stimulus program), who just sat on it. The banks would have ended up with the money anyway, but at least people would not have continued to lose their homes.
It wouldn't have worked better. The banks shouldn't have received money. Where do you think tax money comes from?
It doesn't necessarily have to be a story about a wealthy black county. Why isn't there a story on how whites tend to locate around other whites, and blacks tend to locate around other blacks and the higher property values that comes with just being in a white neighborhood. There are tons of majority middle class nighborhoods in the country to choose from. I'm not saying we should exclude PG County in these stories, just that this particular story is getting old and unoriginal. It's not even a question of readers who may not know because we see this same story on an annual basis. Very little journalism is done on some of the external broader social issues exclusive of inequality. Why don't wihte people move into black communities knowing that if they do, school quality naturally improves? Thus making it more acceptable for other white families to move in. I'd love to read a story about that.
Why are you so hung up on white people when the whole thread is about a majority black county?
I'm not opposing the idea, but saying they need to help pay mortgages so we won't lose wealth doesn't make sense. If they had wealth, why would they need help with the mortgage?
So your declining home values are a result of appraisers not living in the county?
Nick investors help stabilize the values in these neighborhoods.
I understand the impulse but trust and believe developers won't build if the conditions aren't fortuitous for them to do so.
LOL let's pay off everyone's mortgage! Great idea.
There is some validity to Nick's complaints. My house was appraised at least 25% to 35% above what I knew to be a reasonable value. I had a feeling there was a market bubble.
Then the recession happened which was one hell of a market correction. So, the DC area average home price dropped 30%. My home value dropped damn near 55% (adding in the 30% area-wide plus the additional 25% my house was overvalued). This is after putting $50k into the home. And the neighborhood is within walking distance to a revitalizing Rt. 1 and two future Purple Line stations.
The banks knew what they were doing. They aren't dumb. They are always 4 steps ahead of the government. They knew those neighborhoods were overvalued, but they sold the public a different story; one that would benefit their bottom line. They have algorithms and crap that they use to mitigate risk. They know the truth and can spin it anyway they wish when talking to the public which doesn't know how to see through the BS. The banks saw an opportunity to make some quick cash knowing the government would bail them out. Inflate property values and entice people to take out equity that would put their debt well over 100% of the value of their home.
I'm sorry, I just don't believe the banking industry looks out for the best interest of the 99%; appraisers included. They never have. They never will. You have to have a public that is educated in banking and finance and not everyone will have that knowledge. But the banks at least should be straight up and honest. But that wouldn't be in their best interest.
Why are you so hung up on white people when the whole thread is about a majority black county?
I wasn't hung up on white people in this God-awful old thread that was resurrected. Some people seem to think that the housing crises was a black problem when it was a national problem. Few people know, and many probably don't care to know, that the African American population is always hit the hardest during an economic downturn. But we get caught up talking about how African Americans aren't responsible and are dumb. But wait, this is one county in a whole nation that was affected, white people, asians, and latinos included. So, let's not loose sight of the fact that the effects will be ten times as much in the black community than anywhere else. But pain and suffering sells headlines. So then you have your annual requisite "African Americans hit hard" story. Trust me, next year the WAPO will print another story about the same thing.
There is some validity to Nick's complaints. My house was appraised at least 25% to 35% above what I knew to be a reasonable value. I had a feeling there was a market bubble.
There definitely was a bubbled fueled by easy money.
Quote:
Then the recession happened which was one hell of a market correction. So, the DC area average home price dropped 30%. My home value dropped damn near 55% (adding in the 30% area-wide plus the additional 25% my house was overvalued). This is after putting $50k into the home. And the neighborhood is within walking distance to a revitalizing Rt. 1 and two future Purple Line stations.
The market correction was bad but the differences in the rebound across the area is the real issue. Now with the easy money drying up and lending more restrictive home values are going back to fundamentals. Unfortunately your personal renovations make little difference in the market value of your home if the surrounding area doesn't support it.
Quote:
The banks knew what they were doing. They aren't dumb. They are always 4 steps ahead of the government. They knew those neighborhoods were overvalued, but they sold the public a different story; one that would benefit their bottom line.
The banks are out for self. That's why it is imperative that individuals also arm themselves with knowledge.
Quote:
They have algorithms and crap that they use to mitigate risk. They know the truth and can spin it anyway they wish when talking to the public which doesn't know how to see through the BS. The banks saw an opportunity to make some quick cash knowing the government would bail them out. Inflate property values and entice people to take out equity that would put their debt well over 100% of the value of their home.
Not sure it was that sinister but I understand your anger.
Quote:
I'm sorry, I just don't believe the banking industry looks out for the best interest of the 99%; appraisers included. They never have. They never will. You have to have a public that is educated in banking and finance and not everyone will have that knowledge. But the banks at least should be straight up and honest. But that wouldn't be in their best interest.
I agree but we already have truth-in-lending laws. At some point people have to be responsible for themselves. I hope your personal housing situation resolves itself though.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
