Comments on: Three ways to help fix the vacant house problem http://politicalderby.com/2008/12/18/three-ways-to-help-fix-the-vacant-house-problem/ Latest PD Composite: Barack Obama 45.6% - Mitt Romney 45.8% Tue, 24 Apr 2012 18:09:39 -0400 hourly 1 http://wordpress.org/?v=3.1.3 By: Fabs http://politicalderby.com/2008/12/18/three-ways-to-help-fix-the-vacant-house-problem/comment-page-1/#comment-168336 Fabs Thu, 18 Dec 2008 18:06:44 +0000 http://politicalderby.com/2008/12/18/three-ways-to-help-fix-the-vacant-house-problem/#comment-168336 I don't think Mr. Muth was too far off, but there is some space to argue his points. I actually agree with his downpayment perspective. The market is tightening up to the point where banks REALLY want 20% down, so it's not just folks with zero down payments that are having a tougher time getting a loan. When you're paying rent and trying to save for a large down payment, that's going to take a LONG time to get 20% for the average Joe Shmoe. So I agree that there should be more room for those with at least a small down payment since down payment size isn't necessarily a great indicator of one's ability to pay monthly. The property taxes isn't such a big deal because if the home values are really that different from the assessed value you can usually dispute it. It takes some work, but worth the effort if it's a legitimate problem. And I don't really buy the rehab money arguement since those types of damages are factored into the market value of a home and will usually drop the home's value more than what it actually costs to fix it up. You shouldn't need access to additional funds to fix it up since you've already got a bargain price because of it. If you're really that stretched to only afford the home and can't fix it up, then you should be finding ways to enjoy those holes in the walls. I don’t think Mr. Muth was too far off, but there is some space to argue his points. I actually agree with his downpayment perspective. The market is tightening up to the point where banks REALLY want 20% down, so it’s not just folks with zero down payments that are having a tougher time getting a loan. When you’re paying rent and trying to save for a large down payment, that’s going to take a LONG time to get 20% for the average Joe Shmoe. So I agree that there should be more room for those with at least a small down payment since down payment size isn’t necessarily a great indicator of one’s ability to pay monthly.

The property taxes isn’t such a big deal because if the home values are really that different from the assessed value you can usually dispute it. It takes some work, but worth the effort if it’s a legitimate problem.

And I don’t really buy the rehab money arguement since those types of damages are factored into the market value of a home and will usually drop the home’s value more than what it actually costs to fix it up. You shouldn’t need access to additional funds to fix it up since you’ve already got a bargain price because of it. If you’re really that stretched to only afford the home and can’t fix it up, then you should be finding ways to enjoy those holes in the walls.

]]> By: JE http://politicalderby.com/2008/12/18/three-ways-to-help-fix-the-vacant-house-problem/comment-page-1/#comment-168261 JE Thu, 18 Dec 2008 15:01:41 +0000 http://politicalderby.com/2008/12/18/three-ways-to-help-fix-the-vacant-house-problem/#comment-168261 Gonna disagree with chuck on this one, troy. If you are a potential buyer with no money to put down and can barely make the payment but would be stretching to pay property tax, you probably are not in a good enough financial shape to be buying a home. I agree the property tax being based on prior levels is stupid, but when the market turns the taxes would go back up with the value of the home, so unless you are buying it just to flip it for a profit later, you will wind up with those property taxes at some point. (And then there is upkeep, insurance and a list of other hidden costs to ownership). I know, the assumption is that income will rise...but that is the thinking that roped people into ARM's and when the rate went up it led us into this mess because people tried to buy more house than they could reasonably afford. Not everyone needs to be or is capable of being a home owner...this is one lesson of the housing collapse. Gonna disagree with chuck on this one, troy.
If you are a potential buyer with no money to put down and can barely make the payment but would be stretching to pay property tax, you probably are not in a good enough financial shape to be buying a home. I agree the property tax being based on prior levels is stupid, but when the market turns the taxes would go back up with the value of the home, so unless you are buying it just to flip it for a profit later, you will wind up with those property taxes at some point. (And then there is upkeep, insurance and a list of other hidden costs to ownership). I know, the assumption is that income will rise…but that is the thinking that roped people into ARM’s and when the rate went up it led us into this mess because people tried to buy more house than they could reasonably afford. Not everyone needs to be or is capable of being a home owner…this is one lesson of the housing collapse.

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