Gentrification question.

SouthernDemocrat said:

My wife is from Houston. That city has to lead the world in people buying up an old Cape Cod, tearing it down, and building the absolute biggest house you could possibly fit on the property.

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Yea, there are some sections of the city that make Ostentatious a bad word!:mrgreen:

SouthernDemocrat said:

Gentrification seems to be something of a controversial issue these days. On balance, do you think that gentrification is a good thing or a bad thing?

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It depends on the motivation.If the motivation is to squeeze out low income families and businesses then it is a bad thing.

This poll needs a "there are pros and cons" option. That's my take.

Pros: Gentrification cleans up bad neighborhoods.
Cons: Everyone, including the poor, needs a bed to sleep on.

DA60 said:

Whatever the free market says (within the law).

So long as the government provides shelter to those that need it, rip the slums to bits and build whatever the market will bare.


Btw, in my opinion, there is a market for tiny (sub 300 sq. ft. for one person, for example), basic, clean, safe apartments with very simple fixtures and finishes. Apartments so small and cheap per square foot to construct and maintain (though functional) that building them and renting them out at a cheap price is economically profitable without government assistance.
I see that as a future area of development in America.

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That is probably true in a lot of places, particularly larger urban areas and places where there are tens of thousands of college students.

The truth is raw and crude always. Anytime it isn't, it isn't the truth. Anytime wealth is being created in a place where it usually isn't that's a good thing. Usually if it's making people angry then that's a direct sign of a good thing.

The only thing bad about it really is the issue of taxation based on APPRAISED value, rather than purchase value.

For instance, I bought my house in....2010, I think? Paid 155K for it, which in CT, in the neighborhood it's in, was a STEAL. It was a short sale. I lucked out.



LITERALLY 1 and half years later, the tax lady came and appraised it's value at 245K. And so now, I pay taxes on a 245K house, regardless if that's what I could sell it for or not.

lol. I thought that word meant the changing in population from young to old. HAHAHA

Oops.

brothern said:

Gran who's owned the home since 1964, suddenly sees her home's property value triple because of its location and suddenly she's looking at paying double the property taxes on a limited income.

Eventually forcing her to lose her home.

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so she could sell and make a huge profit? urmadbro?

Dw23 said:

so she could sell and make a huge profit? urmadbro?

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The problem isn't with those that can sell and move, but those that can't. The elderly, primarily. Or those that are tied to the community for a particular reason: business owners, young families, caretakers, etc.

Also we're not talking about a $300,000 home becoming $900,000. That's not what "gentrification" concerns. We're talking a $40,000 house, if even that, becoming $120,000.

KevinKohler said:

For instance, I bought my house in....2010, I think? Paid 155K for it, which in CT, in the neighborhood it's in, was a STEAL. It was a short sale. I lucked out.



LITERALLY 1 and half years later, the tax lady came and appraised it's value at 245K. And so now, I pay taxes on a 245K house, regardless if that's what I could sell it for or not.

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I appreciate the arguments on both sides of that issue. They are not allowed to use auctions/foreclosed/REO property as comps but those can pull down values if there are a lot of the in the same area. On the other hand, did you not know before you went in what the tax value was when you got it for a "STEAL"? My house is assessed at twice plus what I paid for it less than a year ago, but I knew that and what my taxes would be when I purchased it. I think it is over assessed for what the local market really is with so many liquidated properties on the market, but hopefully in 5 years that will be behind us and the tax values will be lower than the market values again. In the meantime, I am just stoked that I got such a sweet sweet deal on a house next to a larger tract I already owned and used for business purposes.