patrick.net

I love the backyard landscaping

I love the look of exposed powerlines. Very retro!

Lol. I'm going to be building a house, with land for $400-500k that will be exponentially better than that house in the link. 4 bed, 3.5 bath, 2 car attached garage, secondary structure with 2 car garage with office and upstairs apartment/work space w/bathroom and an in ground pool with all the bells and whistles. I'm putting in a heated driveway so I don't have to touch a fucking shovel or snowblower again. And way better landscaping and finishes.

My response is move if that's what housing costs around you. Sure appreciation is a factor, but your monthly nut is being sucked by a monthly mortgage that is huge. I can't really imagine a larger waste of money than that house. You could leverage $5.5M in my town and buy 20-30 houses and cashflow $20k/mo. You're paid back in 3-4 years on borrowed money.

WookieMan says

My response is move if that's what housing costs around you. Sure appreciation is a factor, but your monthly nut is being sucked by a monthly mortgage that is huge. I can't really imagine a larger waste of money than that house. You could leverage $5.5M in my town and buy 20-30 houses and cashflow $20k/mo. You're paid back in 3-4 years on borrowed money.

Not only that, but California politicians (D) are already finding ways to tax "unrealized gains" on real estate. They're proposing a 25% tax on real estate profits for flippers/investors. Not sure it will pass committee, but I am certain they are looking to do the same for owner occupants at some point in the NEAR future.

WookieMan says

I'm going to be building a house, with land

For $6M I expect a LOT more land than that.

WookieMan says

your monthly nut is being sucked by a monthly mortgage that is huge. I can't really imagine a larger waste of money than that house

Likely the new owner will pay cash. E-man has shared about so many rich folks cashing out their stock options from the tech companies who do that. So no monthly mortgage for the lucky buyer.

Now, Property Tax, that's another matter. Firstly, the 1% rate the ®ealtors tell you is not the entire amount. There's a cornucopia of various additonal assessments, parcel taxes, Junk Fees, etc. Some of those, "parcel taxes", are a fixed amount for all parcels and would be a rounding error for this place. But others of those are based on the assessment. 1.2% is probably a more honest rate than 1.0%

If the Lucky New Owner really does pay $5 M, they'll be facing a Property Tax bill of about $5000 per month.

B.A.C.A.H. says

If the Lucky New Owner really does pay $5 M, they'll be facing a Property Tax bill of about $5000 per month.

This is the first thing I thought. Current owner paying that much a year. New owner paying 12x more.

zzyzzx says

WookieMan says

I'm going to be building a house, with land

For $6M I expect a LOT more land than that.

they do too, which is why they selling it.