OT: Why a house is not a good investment

[yesrutgers01]

General tax rates in Bergen Co NJ varies a ton from town to town- lowest being "Alpine" go figure at .779 and Saddle River at .921 up to 4.018 in Bogota

Maryland all look to come in well under 2.0 rates. So, Maryland is by far cheaper. But, we do have towns that compare with Maryland.

 

[RUnTeX]

But, we do have towns that compare with Maryland.

That was my main point about comparing the two...it is dependent on where in NJ vs. where in MD.

I think Baltimore City might be one of very few jurisdictions above 2% in Maryland.

 

[RUSK97]

I’ve heard this said before and for me, it rings true. A house can be an investment, but your home is always a utility, not an investment.

 

[yesrutgers01]

I’ve heard this said before and for me, it rings true. A house can be an investment, but your home is always a utility, not an investment.

I can say this for sure...renting a nice house now and about 1/3 of the cost...but it is not even remotely the same as owning...

 

[WhichReligionIsRight]

Looking at a house sale near me, it was purchased in 2001 for $389,900. Over the past 19 years, the owner paid over $136,000 in taxes. For the sale, they needed renovations that were about $60,000, the house was built in 1968. So they paid about $585,900. They sold it this year, in a seller's market, for $480,000. So they lost $105,900 dollars not counting wear and tear repairs over the years.
Did anyone ever make a profit selling their house when factoring in property tax?

Is this in comparison to living in a van down by the river?

 

[BigWill]

Mahwah- what they call the Fardale section. Which means bordering on Ramsey, Allendale, Wyckoff and Franklin Lakes, not bordering on Suffern. Had my wedding there, 130+ guests
On my listing, couldn’t include all the Sq Ft because, even though my basemen was fully finished with play room, office, wine room and theater room, it was not a walkout so it couldn’t be listed in the sq ft

Basements can't be calculated in Sq Ft for the residential appraisal, but a finished basement can be given added valuation in the report. The Appraiser just needs to add written addendum and a photo or two to the appraisal. You most likely won't get your full appraisal but you will get some ROI.

 

[BigWill]

Buying low/repairs in a very good area is a decent formula, and then moving up to avoid the gains is a good way to figure.

Son bought low and repaired in nice area in Jacksonville. Sold and folded 1/4 M into the new home in nice area of Annapolis when transferred. Bought low again and did repairs. Sold in 1 day and folded 100k into next home off Exit 109. Transferred to Conn. Rented 109 home, bought in Conn and NJ rental income pays mortgages at both NJ and Conn homes.

 

[yesrutgers01]

Basements can't be calculated in Sq Ft for the residential appraisal, but a finished basement can be given added valuation in the report. The Appraiser just needs to add written addendum and a photo or two to the appraisal. You most likely won't get your full appraisal but you will get some ROI.

Absolutely...though, if it is a finished walkout, it can be counted into the sq ft on the listing. Kind of sucked as even though the appraiser may give a little valuation, when on the market, you are listed with houses and buyers will compare to homes that are not equal at all.
The other thing that can be tough when you get to a certain high valuation...some buyers are fooled by "new construction" and will spend more for less and cheaper(spec) built, no property, etc just because it is brand new.

 

[BigWill]

Picking a 'busy' realtor will mean that person usually has an Appraiser that is 'good'.

I did an appraisal on a river in a nice town. Gave an appraisal that was accurate, but UNDER the selling point. I never worked for that Realtor again !

 

[yesrutgers01]

Picking a 'busy' realtor will mean that person usually has an Appraiser that is 'good'.

I did an appraisal on a river in a nice town. Gave an appraisal that was accurate, but UNDER the selling point. I never worked for that Realtor again !

Realtors and mortgage officers have no say in the appraiser and are NOT allowed to communicate with them in any official manner. Laws have changed from the good old days

 

[Plum Street]

Realtors and mortgage officers have no say in the appraiser and are NOT allowed to communicate with them in any official manner. Laws have changed from the good old days

Well, Tony soprano had a friendly appraiser for his HUD scam in Newark.

 

[yesrutgers01]

Well, Tony soprano had a friendly appraiser for his HUD scam in Newark.

Also before all the laws changed. Every mortgage loan officer had their favorite appraisers. In most cases, not to scam but to at least be able to actually get fair comps.

 

[Plum Street]

Also before all the laws changed. Every mortgage loan officer had their favorite appraisers. In most cases, not to scam but to at least be able to actually get fair comps.

It was sarcasm