I can't wait until this real-estate market collapses.......

[housejunk]

Ever since the recent property assessments have come out, I've heard nothing but positive responses from my friends/co-workers. They're all super pupmed that their condos/houses have gone up by X amount of dollars. I'm the opposite. Who cares? The only people who benefit from high property values are people like my parents, who own numerous properties and paid them off years ago. For young people like me who own a single home, my expensive house looks great on paper, but if I sell it what am I stuck with? I have to find somewhere else to live, which will cost exactly the same or more unless I'm willing to live out in the boonies. It's an artificial wealth. The only thing that comes with high property values are higher taxes. I can't wait for this market to collapse.

[Sylvanfan]

Originally Posted by housejunk

The only thing that comes with high property values are higher taxes. I can't wait for this market to collapse.

Well than why don't you sell high now, wait for this collapse and buy in again when they're giving houses away in the future? Or you could look to move somewhere else where housing is more affordable with a bunch of money in your pocket, couldn't you? Sounds to me like your perspective on things needs to be adjusted.

[FlamesKickAss]

not to mention the people that are trying to buy their first house.

[Flames in 07]

Originally Posted by housejunk

Ever since the recent property assessments have come out, I've heard nothing but positive responses from my friends/co-workers. They're all super pupmed that their condos/houses have gone up by X amount of dollars. I'm the opposite. Who cares? The only people who benefit from high property values are people like my parents, who own numerous properties and paid them off years ago. For young people like me who own a single home, my expensive house looks great on paper, but if I sell it what am I stuck with? I have to find somewhere else to live, which will cost exactly the same or more unless I'm willing to live out in the boonies. It's an artificial wealth. The only thing that comes with high property values are higher taxes. I can't wait for this market to collapse.

Your right, you only cash in if you move to Black Diamond. But don't hold your breath, this might be the cheapest you ever see. Vs many other centers this is very cheap.

[jolinar of malkshor]

Just wait till Dion gets in....then you will have your housing crash.

[Superflyer]

Originally Posted by FlamesKickAss

not to mention the people that are trying to buy their first house.

This is why I am hoping that the bottom falls out soon, but I am not holding my breath. I know that as soon as I buy a house it is going to fall out and then I am stuck with a $500,000 morgatage with a $250,000 house.

[FireFly]

Originally Posted by Superflyer

This is why I am hoping that the bottom falls out soon, but I am not holding my breath. I know that as soon as I buy a house it is going to fall out and then I am stuck with a $500,000 morgatage with a $250,000 house.

Then can you hurry up? I'd like to buy a house too, and if I need to wait for you to buy yours so it crashes, I wish you'd get on that... I'm sick of paying rent.

[RedDeerFan]

Originally Posted by Flames in 07

Your right, you only cash in if you move to Black Diamond. But don't hold your breath, this might be the cheapest you ever see. Vs many other centers this is very cheap.

I doubt it. I think there is a very good chance the market will bust or at least level off in the near future.

[housejunk]

Originally Posted by Sylvanfan

Or you could look to move somewhere else where housing is more affordable with a bunch of money in your pocket, couldn't you? Sounds to me like your perspective on things needs to be adjusted.

I've got a place in Kensington, and I'm happy where I am. I'm born and raised in Calgary and it's one of the few locations in this city where I get the feeling that I'm living in a major city and not part of some nameless subrub that could be anywhere. My property has gone up insanely, but I'm not willing to cash-in and move into a pre-fab place halfway to Okotoks just to pocket some money. All I'm saying, is that this recent market increase does virtually nothing for your average, single-home owning Calgarian.

[Claeren]

Originally Posted by housejunk

The only thing that comes with high property values are higher taxes.

While a common preception of reality, it is in fact false.

Taxes do NOT go up with home values.

Taxes go up for a home owner when (A) the city raises taxes or (B) their home appreciates by more than the average home in the city.

So if the city sees 40% home price growth and your house went up 40% in value then your taxes should stay roughly the same. If it went up 60% then your taxes will go up and if it went up 'only' 20% they will likely go down.

The base amount of taxes is simply split among home owners based on home value compared to the city average.

Of course that base amount itself does go up, usually by ~4%/year, but this is quite reasonable when you consider that inflation is about the same (and inflation for the city, whose 'basket of goods' is different then the average consumer, sees inflation of 5%-7%/yr+).

(Income taxes by comparison take a set percentage of your wage as it goes up, and as such grow with inflaiton without seeming to have been raised directly.)




Calgary also has some of the lowest property taxes in Canada.



Claeren.

[housejunk]

Originally Posted by Claeren

While a common preception of reality, it is in fact false.

Taxes do NOT go up with home values.

Taxes go up for a home owner when (A) the city raises taxes or (B) their home appreciates by more than the average home in the city.

So if the city sees 40% home price growth and your house went up 40% in value then your taxes should stay roughly the same. If it went up 60% then your taxes will go up and if it went up 'only' 20% they will likely go down.

The base amount of taxes is simply split among home owners based on home value compared to the city average.

Of course that base amount itself does go up, usually by ~4%/year, but this is quite reasonable when you consider that inflation is about the same (and inflation for the city, whose 'basket of goods' is different then the average consumer, sees inflation of 5%-7%/yr+).

(Income taxes by comparison take a set percentage of your wage as it goes up, and as such grow with inflaiton without seeming to have been raised directly.)




Calgary also has some of the lowest property taxes in Canada.



Claeren.

Your explanation was unecessary. The number this year was 43% I believe? That being said, I'm not of aware of anyone whose property tax hasn't increased. Over a 5 year period, (for myself) its been ridiculous. Plus, I'm a Calgarian so I'm not concerned with what other Canadian municipalities are doing in relation to their own property tax algorithims. From my perspective the return I've seen relating to property tax and services over the time I've owned my home are far from congruent.

[skins]

Originally Posted by housejunk

That being said, I'm not of aware of anyone whose property tax hasn't increased.

my parents own a condo in kensington, and their property tax actually went down.

[JiriHrdina]

Originally Posted by FlamesKickAss

not to mention the people that are trying to buy their first house.

{Waves his hand}

It is frustrating isn't it. I've been in a situation where I couldn't buy something for a number of reasons, but now I want to and I don't know if I can afford to do so. One starts to think hard about leaving this city simply because I don't know if I can afford to be a home owner here.

But I'm not whining about it - its the nature of the market, and I made choices that got me to this point - none of which I regret. But it does make looking around for your own place a bit frustrating.

[Claeren]

Originally Posted by housejunk

Your explanation was unecessary. The number this year was 43% I believe? That being said, I'm not of aware of anyone whose property tax hasn't increased. Over a 5 year period, (for myself) its been ridiculous. Plus, I'm a Calgarian so I'm not concerned with what other Canadian municipalities are doing in relation to their own property tax algorithims. From my perspective the return I've seen relating to property tax and services over the time I've owned my home are far from congruent.

But it has nothing to do with city wide home price increases as you asserted and seem to still believe. (So i can only conclude that it is in fact a needed explanation, for even if it falls on deaf ears in your case others may benefit from not falling for the same logical fallacy that you have.)

It is funny that i just left a thread where people were talking about how surprised/pleased they were to have their home go up 30% in value this year and have their taxes DROP - but by all means, keep believing that home price growth and tax increases are tied together.

Further, how then are your property taxes more painful then any other taxes you pay? Compared to inflation they have been going down, not up. You cannot say that about income taxes... where they take an absolute percentage of your 10% raise, even if inflation is only 4%.

Lastly, IF your home is in fact seeing higher taxes that means it is growing in value at a rate GREATER than the rest of the city. So your entire post about home price growth being meaningless (as you state it is a zero-sum game for a single home owner) makes no sense. YOU are apparently the prime example of someone who is benefitting more than the average Calgary home owner. Your home value growth is FAR FAR FAR greater than your taxes - if your taxes are going up so much as you yourself state.







Claeren.

[Flames in 07]

Originally Posted by RedDeerFan

I doubt it. I think there is a very good chance the market will bust or at least level off in the near future.

Keep hoping. And prey for $27 WTI while your at it.

Some of the stuff on the outside of the city might not grow as fast, but we are creating millionaires faster than any city in this countries history. Central and large houses will run at a similar pace, outside suburbs value might slow down, but it won't go down so long as WTI prices keep everyone busy.

[housejunk]

Originally Posted by Claeren

But it has nothing to do with city wide home price increases as you asserted and seem to still believe. (So i can only conclude that it is in fact a needed explanation, for even if it falls on deaf ears in your case others may benefit from not falling for the same logical fallacy that you have.)

It is funny that i just left a thread where people were talking about how surprised/pleased they were to have their home go up 30% in value this year and have their taxes DROP - but by all means, keep believing that home price growth and tax increases are tied together.

Further, how then are your property taxes more painful then any other taxes you pay? Compared to inflation they have been going down, not up. You cannot say that about income taxes... where they take an absolute percentage of your 10% raise, even if inflation is only 4%.

Lastly, IF your home is in fact seeing higher taxes that means it is growing in value at a rate GREATER than the rest of the city. So your entire post about home price growth being meaningless (as you state it is a zero-sum game for a single home owner) makes no sense. YOU are apparently the prime example of someone who is benefitting more than the average Calgary home owner. Your home value growth is FAR FAR FAR greater than your taxes - if your taxes are going up so much as you yourself state.







Claeren.

Again, thank you for your long-winded diatribe relating to the inherent infalliability of the municipal property tax system. There is no logical fallacy involved with my initial post. You, for some reason chose to take an out of context throw-away comment to launch into some sort of doctoral dissertation that was not, and is not needed. Unfortunately, after attending engineering, masters and law school I have had far too many encounters with the type of indivdiual that you are; the unlikeable know-it-all who never fails to attempt to assert their percieved knowledge over the percieved ignorance of the unwashed masses.

Let a fella complain about his taxes if he wants.

EDIT: I was wondering why you insisted on coming across like such a wanker, and then I remembered! You're that anti-pet insurance/good christian guy I was telling my friends about a few weeks ago. Yowza.

http://forum.calgarypuck.com/showthread.php?t=35823

[KTown]

I don't see this real estate marketing crashing any time soon. So don't wait forever.

I've been thinking of taking advantage of the boom and moving to Texas or Lousiana, I got a few companies looking for my services. I could buy a nice house, and have no mortgage with what I sell mine for. Not bad for a 27 year old.

The only problem is I never could afford to move back here until the market did crash.

[HelloHockeyFans]

Ottawa might be the last major city in Canada with "affordable" housing prices. But even they're going up out there.

[MoneyGuy]

Originally Posted by Claeren

While a common preception of reality, it is in fact false.

Taxes do NOT go up with home values.

Taxes go up for a home owner when (A) the city raises taxes or (B) their home appreciates by more than the average home in the city.

So if the city sees 40% home price growth and your house went up 40% in value then your taxes should stay roughly the same. If it went up 60% then your taxes will go up and if it went up 'only' 20% they will likely go down.

The base amount of taxes is simply split among home owners based on home value compared to the city average.

Of course that base amount itself does go up, usually by ~4%/year, but this is quite reasonable when you consider that inflation is about the same (and inflation for the city, whose 'basket of goods' is different then the average consumer, sees inflation of 5%-7%/yr+).

(Income taxes by comparison take a set percentage of your wage as it goes up, and as such grow with inflaiton without seeming to have been raised directly.)

I'm a civic politician. This guy gets it.

[browna]

Originally Posted by housejunk

Your explanation was unecessary. The number this year was 43% I believe? That being said, I'm not of aware of anyone whose property tax hasn't increased. Over a 5 year period, (for myself) its been ridiculous. Plus, I'm a Calgarian so I'm not concerned with what other Canadian municipalities are doing in relation to their own property tax algorithims. From my perspective the return I've seen relating to property tax and services over the time I've owned my home are far from congruent.

Mine did, by 40$, as our house went up 42.5%.

And last year it went up from the previous year by $24. So still net $16 over 2 years ago, on a house now valued (assesed) over 380$K.