Re: Jersey City mayor-elect orders end to citywide reval
Posted by 135jc on 2017/2/22 0:16:49
It could be they did not buy a million dollar home, they brought a $65,000 home that became a million without them doing anything.
AND. SO. WHAT? But I'm feeling generous so I'll explain AGAIN.
They put down no more than $17k and made $983,000!! YAY!!! More money than they ever dreamed of, and as you say, they didn't do anything for it!
Now they're being asked to pay 2%, $20k, to stay in their house. Lets say it ultimately costs $5k a year for the reverse mortgage, which is an absurdly high guess. Now they've got to pay $25k, 2.5%, per year out of their equity. Is there anyone who doesn't believe that a DT property will increase by more than that 2.5% on average over the next decade or 2? Remember how fast it recovered even after the 2008 drop? So our modest millionaires can continue to live in their house, and benefit from any gains over 2.5 for as long as they like.
But wait, what's that? A black Swan!! Property drops 30%! It makes no difference to them. After all, all they wanted was to stay in their house and they've still got plenty of equity to pay taxes. Oh, you say what they really wanted was to stay in their house, pay low taxes, and leave the equity untouched to their kids? Tough shit. That party is ending.
Presuming they aren't morons, take a lump sum reverse mortgage and blow it in Vegas on slots, coke and hookers there's no need to feel sorry for them, they're winners!!
So you are advocating that people take out a reverse mortgage to pay their taxes. It's a good thing you are not a financial planner
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