When I have more than one applicant I send them to thunderdome.
The survivor gets the job unless it's this guy.
Attachment 136873
Printable View
When I have more than one applicant I send them to thunderdome.
The survivor gets the job unless it's this guy.
Attachment 136873
Seriously though. The worst working experience of my life was hiring my own replacement.
He turned out to be really aggressive and wrong in the head.
I developed a deep and heart felt connection with Doctor Frankenstein.
My home insurance premium is $1,229.02.Quote:
Originally Posted by SJWhiteley
My taxes last year were $182.33(hurray homestead exemption).
My total mortgage payments last year were $1831.92.
So my home insurance is not more than my mortgage, but then again my home is only insured for $114,000 and the market value is about $78,000. So for homes where the replacement cost is greater 250k+ then they start to become higher than the home insurance.
To make things worse, nearly every finance company requires you to escrow the home insurance here which means that they are going to charge interest on top of what you're paying for the home insurance. Luckily(if you want to call it that) I have a 5 year balloon mortgage and wasn't required to setup the home on escrow, but when I go to remortgage for a 15 year fixed rate I will be required to have it escrowed for at least the first year.
My taxes were just under $1000 for the year. My insurance seems like it was a lot less than that, but I don't quite remember. My total mortgage payments are hard to figure, due to overpaying them routinely, but I think they were around $300/month.
I guess I have no idea what I'm paying. The mortgage goes to $0 this summer, then I'll be able to figure out taxes and insurance.
You guys in the sticks have it easy. My property tax bill this year is almost $4000 on a house the county insists is worth $130K. I paid half that for it (bank-owned foreclosure) and would consider myself very lucky to get $100K if I sold it.
I just found out one of my neighbors is getting $5000 to rent her house out for the week of the Republican convention. Wish I'd known about that...
I don't pay taxes on the first $75,000 because of the homestead exemption. I don't know what the home is assessed at but I know it is a little north of the $75,000.
We have a similar exemption, but it's implemented on some kind of sliding scale, so I don't get the full 75K exemption because my house isn't valued highly enough.
Looks like I pay about $1000 in taxes and a bit under $500 in insurance annually. The house is valued somewhere around $100K, though with this market...who knows. It's a fairly new 1800 sq ft house with attached garage. So, that's about the valuation in this area.
To calculate the replacement cost for the home(at least in Louisiana), which is what you would insure the home for, the rule of thumb is to multiply the living square footage by $100 - $120. So your home would be approximately cost $180,000 - $216,000 to replace.
Market value is generally going to be lower than replacement cost because it is the cost of the home that you could purchase it for. The only time we find homes with higher market value than replacement cost are historical homes and this is because you're purchasing the home for the nostalgic/romantic feel of the home or the neighborhood. That's the case for my dad who has a $500,000, 100 year old, downtown home but the replacement cost is about $380,000.
I think it's a bit less here, but I'm not sure.
That's the opposite way round in the UK and your way seems kinda weird. How do developers make money if you can't sell a house for more than it would cost to build it:confused:Quote:
Market value is generally going to be lower than replacement cost
I agree - I was also shocked by that math.Quote:
Originally Posted by FunkyDexter
Here in Connecticut and all around these surrounding states the market value of the house exceeds the replacement cost - by a large factor, I believe.
@dday - Has market value shrunk that much since the mortgage crisis???
When I refinanced my house, at some point a few years after the crisis, my house value had dropped below the price of the material that went into it. It has since recovered, but I'm not sure exactly what it has recovered to, or if I believe the valuation. After all, the valuation is what you can actually get for it, but the valuation used by the city is some other number.
One thing to point out is that DDay talked about replacement value, not the cost to build. A house down the street from me burned 100% (though remained standing as a blackened shell) just before Christmas. For the last week, very large dump-type trucks have been backing down the cul-de-sac and loading up with the remains of that house. It burned so thoroughly that the concrete foundation had to be removed, and the last piece may have left yesterday. Now they get to build.
So, I would expect that replacement is generally going to be higher than a new build cost unless the loss was particularly unusual.
The rebuild cost may be higher than the new build cost but things have got pretty skewed if the rebuild cost is higher than the purchase cost. I know you guys had a bigger bubble and burst over there than we had over here so that could explain part of it but it's still surprising.
I guess that is the definition of a mortgage being underwater - when the value of said property doesn't cover the cost of loan. Someone in this situation cannot re-finance and usually cannot even sell the property.
Yeah Negative Equity, lost of people had that after the 2008 crash but in the UK at least the housing market is crazy again. Fortunately i have a house but i wouldn't want to be a first time buyer in the current market.Quote:
I guess that is the definition of a mortgage being underwater
It's even worse in London soon unless your a Russian Oligarch or a Hedge Fund manager you wont be able to live in London!
You have to keep in mind that replacement cost is completely different from a new build cost.
With a new build, you do not need to worry about things like ordinance code or matching existing material
You also have to take into account land value.
A new build, when someone buys it is also buying the land. If you loose your house - and only the house - then you aren't going to be paying for the land. On the other hand, new builds, often are built in bulk with bulk savings (and also quite cheaply, these days).
They need to stop giving people 100%(+) mortgages.Quote:
Originally Posted by NeedSomeAnswers
I sent in my application to be an oligarch, but I was rejected.