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American in Japan
2011 Mar 22, 2:50pm
OK. That would be true. In light of the liability of property tax land could be worth zero or less. This might be a good point for the Georgist land tax.
Troy, any comments?
maxweber
2011 Mar 23, 1:22am
I often marvel at how naive the regulars on this forum are but I used to be too. Most of the landlords on here are in rich areas so don't know jack about the real world it seems. What happens when the crack heads use your place for a flop house? When they bust the water pipes? Guess what: YOU get the bill. What about when some teenager falls off your roof. (Probably on purpose as everyone knows but that can never be proven). Or when the neighbors decides to sue you? Or the IRS decides its time to collect that $30K lien that's been sitting there for years (and don't think the title insurance company will pick that one up)!!!
As I found out in tax sales, there are lots of negative value properties.
not to mention gobs of waaaasted time messing with these when you could have been fishing.
BTW, there's a houses near here zoned biz that went for $300K at one point a few years ago and is now sitting REO at $119K. Got the sideboards ripped off of one wall. But its a safe area so will be Ok. But what happens when some HS kid decides to punch holes in the walls or throw rocks through all the windows? Some rain... pretty soon, worthless.
I was a bit tentative about being a landlord until I bought 5 properties and actually did it.
I'm still cowering in the corner clutching my HELOC. Are there any resources you'd recommend (besides, ya know, having inhouse counsel)?
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how many here (if any) feel that a certain percentage of housing could go to zero? meaning either the home can not be sold for legal(aka MERS) reasons or that when financial markets freeze, there will be no money/credit available to lend so a home would be 'worthless' as a financial product.
i would hazard a guess that at least 20% and maybe closer to 40% of R.E. could have such severe MERS issues that it would be unsellable. if we have a major financial melt down i think the numbers could be 50-65% of homes that would be unsellable due to lack of funding.....
right now the federal government is financing 100% of the costs of gov with QE. when QE stops, R.E. loans stop as 98% of the securitization market is now freddie and fannie.....housing goes to zero.
...remember we bulldozed homes, shot cattle and burned crops in the 30's......but this time is different?
#housing