Tuesday, September 1, 2009
Finally - Recent Home Buyers in Luck!
We all know someone, friend, neighbor, relative, that bought in the height of the market. Sometimes it was us! These poor souls are watching as their homes devalue in line with the market adjustment; sometimes as much as 50%. Long time homeowners nod and sigh as they try to empathize with the plight of their friends and loved ones. Oddly enough, tax time has become the great equalizer. Those who bought late in the game, who's homes have devalued are experiencing the benefits of a reduced assessment and reduced taxes. Those who stayed put and look advantage of the Save Our Homes 3% cap have increased taxes. Why? The SOH initiative allows for the 3% increase regardless of market value. Now the new homeowners can sigh and nod as they listen to their friends and families tales of woe. But really... how much can you complain or expect sympathy when in most cases the grandfathered in SOH folks have been paying artificially low taxes for years and even with the current increase are in most cases, still valued below the market - even in this market. How does this compare with the loss of up to 50% of value?