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OT: Why do they stay??

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  • OT: Why do they stay??

    We have had a tremendous amount of new housing developments built in my immediate area over the last three or four years. Most of the homes around here were on 1/2 to 1 acre lots. The developers come in and buy up 6 or so houses and put in new mini developments. They triple the density, and put in large houses right next to each other, on postage stamp sized lots. They can't build these things fast enough, most are sold before the first wall is framed.

    Being as how I'm surrounded by these things, I've noticed a curious trend. Just about every new development has one old (original) house that remains. It is almost always at the front of the development, or somewhere on the perimeter, never in the middle. Near as I can tell, these houses are still occupied by their original owners.

    I don't understand what would make them stay? Granted their home may be paid for and they won't or can't move. Maybe they have family in the area and don't want to leave? Regardless, their assessed value is going up, way up, and the resultant increase in property tax will follow. In addition, they have to put up with a year plus of construction activity, including having their entire yard torn up.

    The only thing I can think of is maybe the developers have to leave one of the original houses in order to build the new development, due to some screwy rule or something. Maybe these people were paid to stay? Ever see anything like this in your areas?


  • #2
    Yes, usually around here the new comers complain about us oldtimers.

    Check out China, the housing over there.. see the future.. they are not making anymore land.

    [This message has been edited by ibewgypsie (edited 11-11-2005).]


    • #3
      Same thing with this one here that I am in.
      I actually beggining to think it might be the house of the developer.
      Some people on this Earth refuse to be bought out from what they want to do. All the power to them. Although everyone has their price.


      • #4
        In my neck of the woods you can split your land into 4 chunks without getting tied up with a whole new set of rules for subdivision development which is very expensive with road improvements to a level that meet county standards. The original owner can not split the land up further until some period of time has past (I forget the requirement on this) but the new owner of any one of the 4 parcels can do another X4 split immediately but must wait for further splitting of the property or face subdivision development fees. That may play a part in it where you are. Also I know of a couple of situations where the original owner was bought out but then leased back the homestead house for his/her life with all rents paid by the purchaser. Any predicted future tax liability would be spread across the remaining parcels built upon either in an inflated lot price or home price - probably figured in on both if it is an otherwise developer that is doing the deal. The developer may even qualify for property tax relief from the local governing unit if he is creating jobs or some such favor dressed up pretty to get the vote of the local board.


        • #5
          Perimiter lots are usually more expensive for the developer to buy, and are still dsirable for the owners to keep.
          CCBW, MAH


          • #6
            Usually you'll find that the original property owner has it deeded into the new deal with the developer. For what ever reason usually posterity. Uncrichie...


            • #7
              "Although everyone has their price."

              I don't know about that.
              There's a Veitnam vet that lives down in the Everglades on 40 acres that he bought in the 70's for $60k and now that the state wants to do a big reclamation project on the glades they want to move him out so they offered him four million for his 40 acres and he told em to get stuffed. Absolutely refuses to leave. Told em he'll be dead in 20 or so years and they can have the land back then.
              You talent is God\'s gift to you.
              What you do with it, is your gift back to God! Leo Buscaglia


              • #8
                My guess as to the reason they stay is pretty simple. Sure their property values go up, just not as fast as the cost of new housing rises. I know in my case,my house has been paid for for years, and it's increased in value a lot, but not nearly as fast as the rise in the cost of a new house. My taxes are darn close to what my old house payment used to be. Besides, to my mind anyway, not a lot of folks in their 50s and up, are gonna want a spankin new 30 or even 40 yr mortgage hanging over their heads, after they sell their old home, and wind up having to buy the same thing all over again, only at a different location for twice the price. Heck in my case, I'd sit here till hell froze over before I'd uproot myself, my shop and all my stuff accumulated over half a lifetime, after getting it just the way I wanted it. The idea of selling out and moving might have appealed to me when I was about 35, but I'm looking at retirement in about 10 years, and with this bunch of fools we have running this country, I sorta doubt I'll ever see a dime out of social security,plus their idea of job creation is to ship your $20 an hour job off to china, and create a $6.50 an hour one for you, so I figure I better hole up here and sit tight, and not stick my neck out financially.

                [This message has been edited by pete913 (edited 09-04-2004).]


                • #9
                  Im with Pete on this one. The thought of moving about 20 tons of old iron makes my joints hurt. Pressure on local real estate has resulted in three new houses being built on what were considered 'unbuildable' lots only 8 years ago. But moving? with this place paid off in another 7 years? I just turn up the music and make chips.

                  The phenomenon that puzzles me are these big houses built so close you can't get a car between them. I'd be dipped if I'd spend that kind of money on a place just to hear my neighbors fart.
                  I'm here hoping to advancify my smartitude.