Loading ...Is The Catalyst For The Next Financial Crisis… Homeowners Insurance?
Millions of Americans are thus left with much of their net worth tied up in houses that are prohibitively expensive to insure – if insurance is available at any price – and are therefore unsellable…
https://www.zerohedge.com/personal-finance/catalyst-next-financial-crisis-homeowners-insurance
https://goldtadise.com/?p=647381
Combined with property taxes rising sharply over time simply due to inflation, on the same house.
Roughly, buy a resale house and pay the former owner 300k for it.
Then over a 30yr period, you pay the banks another 300k to finance it.
And depending on your county, pay another 300k in property taxes.
In FL and CA and soon, in the Appalachian ravine areas, pay another 300k for insurance to cover 100 year floods occurring every dozen years or so.
I grew up across the lake from Fully, where the mill rates are near 5%. Highest in the nation or close. Big reason homes are lower priced there. They get you on taxes. Schools were good though.
One problem with eliminating the property tax is that those with with spare cash will just buy land as a perpetual piggy bank as an inflation hedge with no bail in risk, as the carrying costs would then be so low.