re: #94 Wasta

I think if you look at the one image where the cost of the house goes from $300K to $90K is more than a bit of an exaggeration…not saying houses can’t lose 70% in value, but I don’t know of any in my neck of the woods….but give the govt time….

/

Once such a local housing value “bubble” collapses, the usual next step by local government is to try to avoid a downturn in property tax revenues by either (a) raising existing tax percentages, (b) creating new “temporary” property taxes, (c) artificially inflating the assessed value of homes to force their owners to pay more in property taxes at the existing rates, or (d) some combination of two or more of the above.

Around here, we’ve seen all of the above in the last decade, often repeatedly. According to my local treasurer, my property is now worth a third more that I actually paid for it- in a declining housing market.

/ Fortunately for me, my mortgage is much smaller than the original purchase price. Other people are not so fortunate.

cheers

eon