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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (6073)	10/17/2002 4:07:33 PM
From: Wyätt Gwyön	Read Replies (3) \| Respond to of 306849

interesting that you mention Noe Valley. today i was talking to a friend of mine here whose sister lives in Noe Valley and got laid off from a dotcom early this year. many of her friends are also laid off--people just living on savings and unemployment. apparently it's hard to even get an interview for a good job, so she said. anyway, the silver lining is that she's rented the same place for years, so the rent is "cheap". do they have rent control there? bought for $1.1mm in bubble stock money in early 2000 well, at least you bought something real. though the house has depreciated, i imagine the bubble stock has done a lot worse, in which case not a bad trade after all... (property taxes are only increased 1.5%/year no matter how much the house appreciates but what if your place loses 30% of value? will they step down your taxes 30%? property tax in Texas is very high. here in Austin it's like 2.5% (not a typo). so that's $25,000 PER YEAR on a $1MILLION home. and that 25K goes into the mortgage underwriter's evaluation of whether one can afford a house. no wonder $500K is considered expensive! otoh, there's no state income tax, for which i am very grateful. that made the big tax hits in 1999 and 2000 easier to swallow. however, i must admit it is rather regressive to have zero income tax, coupled with high sales tax and high property tax. i expect we will have an income tax here eventually.

To: Lizzie Tudor who wrote (6073)	10/17/2002 4:46:10 PM
From: Paul Viapiano	Read Replies (2) \| Respond to of 306849

Lizzie, The CA prop tax is 1% of the sales price of your home and any voted indebtedness. My new $475k home will cost me $4750 per year plus about $300 in local and county propositions that were voted for, things like library upgrades, 911 emergency upgrades, etc... Paul

To: Lizzie Tudor who wrote (6073)	10/17/2002 9:30:48 PM
From: David Jones	Respond to of 306849

....The house I am renting in Noe Valley (which btw was the dot commers residential 'burb of choice in SF so it got inflated and deflated to the extreme)... I bought for $1.1mm in bubble stock money in early 2000. I paid 80K over asking price and the house was a mess- I put new windows and other things in and 2 mos later rented it easily for $3550. with a waiting list of 4 tenants. There were 3 working people living in the house, thats how they cover these high rents. Anyway that group moved out in mid-2001, if they didn't move I was considering dropping the rent by $1K because I knew things were collapsing up there. I decided to make some repairs and paint, by the time this was done (2002) when I put it back on the mkt 2100 was about right. If I had to sell the house today? Maybe 750-800K, and this is after about 80K of upgrades.... Ouch!