To the discussion about propetry taxes - why not pay your bill in dollars and coins? Hehe.

http://www.webcpa.com/article.cfm?articleid=25092

I know the property tax discussion was hot and figured that article would be appreciated.

-----------------------------------------

ETA: On another note, for a "debate" on another blog I Was just looking up some statistics on income and housing in San Jose (where I am from).

I think I have said a few times that our parents' home have garnered a 1000%+ return since the 80s.

I just saw it in writing. 936% rise in average home prices in San Jose from 1976 - 2001. Wow.

The median household income in 2000 was about $75k. THat's the median. 1/2 the households make more. 1/2 less.

CNN reports median income of $85k in 2005.

But what do I care, I don't have to live there any more (thank goodness!!!).

Considering the strong appreciation since the 70s though I am really curious where the market as a whole goes. I don't think it is set in stone that places like San Jose will drop like a rock. (Though don't ask me how much has appreciated since 2001 - like 60%?. A lot of those gains may be erased, but would still be the land of insanely expensive).

My dad has a point - little has changed since 1980. He was just telling me like 75% of their income went to mortgage because interest rates were insane (15%+?) - in the early 80s. So today interest rates are in the 6% range but as a percentage of income little has changed when it comes to mortgages in the area.

The Bay Area is just such an unusual beast. Time will tell I guess...

I guess why I am interested too is because the economy here is GREATLY affected by the Bay. If the Bay home prices drop like a rock, millions of people won't be relocating to Sacramento any more. So I guess in a way it all matters to me.

Then again things settling down here wouldn't really be the worst. IT's still craziness here.

But yeah, just going over that 1000% price increase in my head over the last 20 years or so. I keep reading articles about people (in California nonetheless) who have been renters for 20 years and made the "right" choice. I just cringe. I will never see it that way. But maybe now you understand a little why. There are probably many areas in the country that renting makes sense. Out here it historically has made little sense. I mean for example, housing prices have gone up 1000% in 20 years, and I am sure rents have gone up more. In that time frame (2001 at the peak of that statistic) it cost more to rent than to buy. So you buy a house for $50k in 1976 or you rent. Fast forward to today, you have to pay $36k/year (or probably more) to rent that same house. You can settle for a really crummy no-bedroom apartment for $12000/year. If you owned your house is paid off and your property taxes are a few hundred dollars a year (another factor that property taxes don't rise crazy on you out here - with current law anyway - I admit things can change). Plus you have a $1 million asset to fall back on if you need it. Since this is such a long-term trend (not just in recent years with the appreciation) renting in the area never really made any sense to me, except with roommates to save a ton of dough, through college and to save for a down payment on a home. Even then dh thought I was crazy and just lived at home and saved most his money. He had a point but there is more to life than money for me - LOL. I mean I could have stayed home and saved up a lot of money but sacrificed my independence. & heck, my parents would have kicked me out anyway - hehe.

I admit the house we may never tap financially (not part of our financial plan) but I just can't imagine being a renter and not having that safety net (asset), all the same. & if nothing else it means our family builds wealth. I just realized the other day that odds are my better off grandparents' will have a decent home to pass on to my parents (if nothing else) and odds are looking like our parents will have their homes to pass on ($2 mil between the 2 little modest homes today), and this is mostly how wealth will accumulate in our family. Plus where we are compared to where are parents were at 30 - there is no comparison. We will have more opportunity to build up cash wealth in our lives. But owning property just speeds up the process, maybe more for our kids than us, but that's okay. Sounds good to me. It's nice to know if something happened to us today the means are there for them to be well cared for.

I know I have to keep in mind my perspective is extremely unique. Few can probably say the same. I have to remember the rent vs. buy is not always so cut and dry (particularly in this direction). But why I myself will always lean towards the "buying builds wealth" mentality.