[Boomer]

SQUIRREL!

Geez.

Don’t be so easy, so naive.

Gas prices are literally the most visible piece of the economy. If you are in the habit of noticing gas prices on signs you drive past regularly, you know that those prices can change from morning ‘til night and day to day. Gas prices are easily manipulated and can give a false sense of everything getting all better now.

Ridiculously low interest rates, at the beginning of this century, led to idiotic lending practices based on stated assets loans and drive-by appraisals. Then came the derivatives. Supposedly nobody saw the housing crisis coming. HAH! It was easy to see because it made no sense. Those rates were the give-away of the century — so far. That bubble had to pop and so it did. When Bloomberg magazine was still a thing, they had some artsy covers. There was one that was a drawing of a house with a cobra coming out, ready to strike. That cover was a piece of economic history.

Did real estate and banking learn a lesson from the housing bubble? Well, yes. Mortgage qualifying tightened.

This time though, the effect of those low rates on all of us, mortgaged or not, has been more insidious……

Corporate landlords, private equity, institutional investors have been buying up houses, especially those for first-time buyers, and got a foot in the door like never before, and slammed that door in the faces of young buyers.

Planet Money had an interesting article on September 8, titled “Here’s What Happens When Private Equity Buys Houses in Your Neighborhood.” Read it and think about it and stop being distracted by gas and eggs. You can bet big money is drooling over being all set to grab up more houses if the interest rate returns to ridiculously low rates.

Those who think TV is a safe island might want to think again. 3 bedrooms + 2 baths = The perfect rental.

Boomer

[Aces4]

Originally Posted by Boomer

SQUIRREL!

Geez.

Don’t be so easy, so naive.

Gas prices are literally the most visible piece of the economy. If you are in the habit of noticing gas prices on signs you drive past regularly, you know that those prices can change from morning ‘til night and day to day. Gas prices are easily manipulated and can give a false sense of everything getting all better now.

Ridiculously low interest rates, at the beginning of this century led to idiotic lending practices based on stated assets loans and drive-by appraisals. Then came the derivatives. Supposedly nobody saw the housing crisis coming. HAH! It was easy to see because it made no sense. Those rates were the give-away of the century — so far. That bubble had to pop and so it did. When Bloomberg magazine was still a thing, they had some artsy covers. There was one that was a drawing of a house with a cobra coming out, ready to strike. That cover was a piece of economic history.

Did real estate and banking learn a lesson from the housing bubble? Well, yes. Mortgage qualifying tightened.

This time though, the effect of those low rates on all of us, mortgaged or not, has been more insidious……

Corporate landlords, private equity, institutional investors, have been buying up houses, especially those for first-time buyers, and got a foot in the door like never before, and slammed that door in the faces of young buyers.

Planet Money had an interesting article on September 8, titled “Here’s What Happens When Private Equity Buys Houses in Your Neighborhood.” Read it and think about it and stop being distracted by gas and eggs. You can bet big money is drooling over being to grab up more houses if the interest rate returns to ridiculously low rates.

Those who think TV is a safe island might want to think again. 3 bedrooms + 2 baths = The perfect rental.

Boomer

Thank you! You succinctly stated and with references, covered the exact issues of which I was speaking. It is a mess out there and absolutely ridiculous what the investors have created in the housing market because of what I call free money. Let's face it, another drop in interest rates will push more investment money into real estate, it has to happen. That will leave more first-time homeowners out of the market.

[Normal]

Originally Posted by Aces4

Thank you! You succinctly stated and with references, covered the exact issues of which I was speaking. It is a mess out there and absolutely ridiculous what the investors have created in the housing market because of what I call free money. Let's face it, another drop in interest rates will push more investment money into real estate, it has to happen. That will leave more first-time homeowners out of the market.

I think we can all agree a quarter point won’t really matter for the housing market here. We have record insurance rates and Sumter County taxes are in the upper most quartile for Florida (doesn’t even including city taxes). I’m willing to bet (and have) that the stock market will give much better returns than any investment in real estate. It will take years for prices to come back down to earth.

[Aces4]

Originally Posted by Normal

I think we can all agree a quarter point won’t really matter for the housing market here. We have record insurance rates and Sumter County taxes are in the upper most quartile for Florida (doesn’t even including city taxes). I’m willing to bet (and have) that the stock market will give much better returns than an investment in real estate.

Can’t agree on that premise. Florida is not the whole nation, real estate is a tangible, (how many here still have the worthless stock certificates their parents were left holding after the Great Depression). If the stock market is giving such great returns, it doesn’t need help from lowering already too low interest rates. Rather than lowering, interest rates, rates should climb that quarter point.

[Bill14564]

Originally Posted by Normal

I think we can all agree a quarter point won’t really matter for the housing market here. We have record insurance rates and Sumter County taxes are in the upper most quartile for Florida (doesn’t even including city taxes). I’m willing to bet (and have) that the stock market will give much better returns than any investment in real estate. It will take years for prices to come back down to earth.

Do you have a source for your insurance and taxes assertions? I believe insurance in Sumter is much less than the coastal counties and taxes appear to be among the 10 LOWEST in the state.

[Normal]

Originally Posted by Bill14564

Do you have a source for your insurance and taxes assertions? I believe insurance in Sumter is much less than the coastal counties and taxes appear to be among the 10 LOWEST in the state.

Think again on taxes. Florida Property Taxes By County - 2025

There are 67 counties in the state. We are 18th with 49 other counties having lower tax rates in Florida.

Insurance rates? Florida carries the monster premiums.
Home Insurance Rates by State for 2025 | Bankrate

[Aces4]

Originally Posted by Normal

Think again on taxes. Florida Property Taxes By County - 2025

There are 67 counties in the state. We are 18th with 49 other counties having lower tax rates in Florida.

Insurance rates? Florida carries the monster premiums.
Home Insurance Rates by State for 2025 | Bankrate

Cry me a river. I’m guessing that those tax figures are based on all real estate taxes in Sumter County including the jacked up amounts paid by seasonal residents which would skew the average amount paid by frogs.
For perusing: Property Taxes by State in 2025: Highest to Lowest | The Motley Fool
As far as the insurance rates.. free roofs and living in hurricane alley have a price.

[Normal]

Originally Posted by Aces4

Cry me a river. I’m guessing that those tax figures are based on all real estate taxes in Sumter County including the jacked up amounts paid by seasonal residents which would skew the average amount paid by frogs.
For perusing: Property Taxes by State in 2025: Highest to Lowest | The Motley Fool

Some are further shafted with municipal taxes. Wildwood, Leesburg and Lady Lake all have additional rates tacked onto county assessments.

[Aces4]

Originally Posted by Normal

Some are further shafted with municipal taxes. Wildwood, Leesburg and Lady Lake all have additional rates tacked onto county assessments.

The only one of those you listed, Wildwood, is in Sumter County and the rates have to do with improvements due to massive growth. Just think, a larger tax base soon.

[Bill14564]

Originally Posted by Normal

Think again on taxes. Florida Property Taxes By County - 2025

There are 67 counties in the state. We are 18th with 49 other counties having lower tax rates in Florida.

Insurance rates? Florida carries the monster premiums.
Home Insurance Rates by State for 2025 | Bankrate

Ah, I see the problem - poor understanding or poor choice of words.

The median tax amount is not the tax rate. The median tax looks at taxes on all properties and finds the middle point. Since 75% of the properties in Sumter County are in the high-rent Villages that skews the median higher. Sumter's tax rate is one of the lowest in the state. Sumter's median tax amount is towards the top of the list due to the value of the homes. There is a difference and it will matter to an informed buyer.

IF Sumter County was 18th that would put is in the 2nd Quartile, not the top. BUT, according to the page you posted we are 27th which is barely above the median.

Your insurance page is a good argument to move to a state other than Florida. However, once you've decided to move to Florida, Sumter County will have a lower insurance cost than the coastal cities mentioned on that page.

[Pugchief]

Originally Posted by Normal

Think again on taxes. Florida Property Taxes By County - 2025

There are 67 counties in the state. We are 18th with 49 other counties having lower tax rates in Florida.

What Bill said and:

From your own source, FL as a whole has a 0.97% tax rate, but Sumter has a 0.82 rate. Sumter is well below the median tax rate in FL.