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3
WookieMan
2022 Apr 13, 6:26am
WookieMan
2022 Apr 13, 6:26am
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.
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.
4
Goran_K
2022 Apr 13, 6:28am
Goran_K
2022 Apr 13, 6:28am
WookieMan says
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.
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.
5
zzyzzx
2022 Apr 13, 6:46am
zzyzzx
2022 Apr 13, 6:46am
WookieMan says
For $6M I expect a LOT more land than that.
I'm going to be building a house, with land
For $6M I expect a LOT more land than that.
6
B.A.C.A.H.
2022 Apr 13, 7:01am
B.A.C.A.H.
2022 Apr 13, 7:01am
WookieMan says
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.
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.
7
RC2006
2022 Apr 13, 7:37am
RC2006
2022 Apr 13, 7:37am
B.A.C.A.H. says
This is the first thing I thought. Current owner paying that much a year. New owner paying 12x more.
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.
8
FortWayneHatesRealtors
2022 Apr 13, 8:23am
zzyzzx says
they do too, which is why they selling it.
WookieMan saysI'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.
https://www.redfin.com/CA/Cupertino/21841-Alcazar-Ave-95014/home/1418086?source=patrick.net