Im staying right where Im at. At current rate I'll have the place paid for by 2030. Maybe sooner if I get any Camp Lejeune money. 2.6% interest . Got everything I need here and then some as far as house space and shop + another 5 acres un improved in the back.
I’m waiting to sell 2 houses, 1 in Missouri and 1 in Arizona, Both markets dropped to zero in summer of 2022 when rates went crazy up, nobody buying in either market. Home Prices are down 10-15% and still are unsold.
Mine is paid for, and I'm not going anywhere until I kick the bucket or they put me in a nursing home (my worst nightmare).
We paid our 30yr mortgage off in 18 years. Unfortunately, our taxes have gone up to the point that it almost matches what our original mortgage payment was from 1994. Built it new by doing most of the general contracting and using personal contacts to save money (dig foundation, pour basement walls). We poured/finished the basement floor, concrete driveway. Our interest rate back in 94 started at 8% and we refinanced 10 years later to 5%. To build this same house and buy the land like we did would cost 3 to4x as much today.
The killer in homebuilding is the cost of the land. Will Rogers said: "Buy land, they're not making anymore of it." It's true. Land around here which is partially under water during the peak of the rainy season is still North of $100,000 for a building lot. After the lot is cleared, you must bring in fill to get the house up out of flood plain. In New England they would never allow the land we use here in SW Florida to be built on. It's all flood plain.
I'm in my mid 50's... don't think I will where I'm at. Bought my previous house in 2003, and even 2008/9 didn't bring it down to less than 40% over purchase price.
On your first statement ,I sold my 1988 single level 2200 sq ft house in Auburn in 2022 taxes were 7200 a year. I bought 2004 2700sq ft in Arizona taxes 2400 a year close to same value. So I agree a million dollar place would be over 10k taxes in King County Part of the reason to get out Second statement ,so true no bubble burst in Seattle area Bought former house in 2004 and at its worse during 08/09 I was up 50% and sold for 3 time purchase price in 02 . It might be somewhat a stalled market right now but prices will never burst in that area.Housing shortage if anything
Hardly any new houses were built between 2010-2017, a vacuum that will never be filled, houses are in short supply, the only thing keeping this market down is Interest rates, that’s because they want renters not owners. A lot of the homes sold in the last 2-3 years in my area were bought by investors, and are now rentals.
Everyone has assumed the bubble would burst in the Seattle market, but it's not showing that. And all the people who overpaid (or did they???) in 2020/21, with 3% or lower interest rates, aren't going to sell to go bigger because the prices haven't come down and the interest rate is closer to 7%. Also, the amount needed to pay the fees associated with selling a house dictate making close to 10% over purchase price. And the people who have owned their houses since the 80's and have long since paid them off aren't going to take the huge capital gains hit of (Sales price - $250k (per person) - major improvements X percent (based on how big the gain was and your income)). I have a neighbor who is in this situation. He's in his 80's and still very active. But he probably paid $100K for his house and hasn't done any major upgrades (new paint doesn't count) to it. If he listed it for sale and it went for $1.1M (which is reasonable), it would be $1.1M - $100K - 250K (he's single/widow)=$750K taxable for capital gains. As a single filer, that would be 20% in capital gains, or $150K, so that $1.1M sale nets him $600K!?!? Why would he want to sell? I've watched, multiple times daily since early 2021 when I was trying to help price my house for sale. Now I'm looking to buy. I've got an eastside map (Newcastle to Kenmore/Bothell with Bellevue/Kirkland to the west and Woodinville/Sammamish/Issaquah to the east). I specify any house under $1.5M (which is way above what I could afford) and it has to have a garage. That's it. There are about 50 houses that are under $1.5M, only two under $1.0M (teardown), and basically everything else is $1.2M+. There's no minimum in my filter.
Mine went from 2500 to 7K in one year. They stated main factor was my roof was over 15 yrs old. I call bull but still paid it
May have been better off calling their bluff & putting the $4500 towards a new roof. At least you'd be getting something for your $.
That and the climbing property taxes is main reason have ruled out moving to Florida, at least the Pensacola area. Taxes here - southern NM - is $1250ish yearly on 2.5 acres and livable trailer. Even with upgrade to newer DW or small site built, one will still be under $2500 year.
The wife wants to move to the Pensacola area of Florida. I started looking at homes on the internet-$$$$$$… I don’t see it happening.
