Top Trends for Perrysburg in 2010 – Predictions Good and Bad
January 26th, 2010 . by Jon Modene1. The Shadow of Strategic Default
This one I hope does not come true. It will be bad for everyone in Perrysburg.
But there CAN come a point in a market where the asset is not worth the debt. When that happens a smart and savvy investor will simply walk away.
Oh – the moral dimension? The ethics? It’s wrong?
Well, the biggest foreclosure in America happened this week – a $5 BILLION collection of apartments in New York City. And the sophisticated, intelligent, MBA-laden owners including Tishman Speyer and Blackrock Capitol – just walked away and turned the keys in.
Think about the possibilties of dozens and then hundreds of normal home owners with underwater mortgages doing the same – especially if the “little guy” in Toledo gets a loan modification (and he doesn’t really “need” it).
This could happen – and the blood will be messy.
2. The Rise of the Rental House.
Every day I am getting calls from people who need help finding rental property.
Or from owners who want to leaser their homes.
Many home owners are considering leasing because they just can’t stomach the price today’s market will pay them. So leasing becomes a way to ride out this market.
The tax consequences of leasing can be AMAZING (more on this soon!).
3. The Rationalization of Value.
Sellers are now coming to terms with the new values in Perrysburg.
Like the proverbial “Five Stages of Cancer” or grief . . . many are now in the last stage -acceptance. They will soon come to the point that I have – I can now rationalize the new values and price points. I accept that the “old market” is not coming back, but that the new, current market is wonderful. For new owners. For buyers. For investors. Even for many renters.
4. The Reaction of Corporations for their Transferees.
What is a company to do? You want to move Joe and Sally Manager to XYZ City. B
But their home is upside down, underwater, and not worth what they paid for it.
Should they leave it behind?
Should they turn it into a rental?
Should they lose all their savings just for a promotion?
No! Hey! They can ask the big giant corporation to make them whole, grossing them up after taxes 4 or more times, and reimbursing them for their loss on sale.
This will be more and more common in Perrysburg.
5. The Restrictions of the Reams of Paper.
The new loan and HUD and lending regulations have taken effect.
No changes – or you start from square one.
A typo? 10 or 20 days in the hopper again.
Lenders will most likely find new ways to “beat” the regulators . . . but that will take time. So in 2010 get ready for delays.
6. The Fallout of the Bailouts on Property Taxes.
This is something that I hope does NOT happen in Perrysburg.
The bloom is off the rose with bailouts and budgets and Federal help to Ohio.
No more help is coming.
Our leaders at ALL levels should have used the past three years to cut spending.
They didn’t.
Now with huge revenue hits coming they may look to the homeowner for help.
By running a stream of new levies by the homeowners in the 43551 for every little program and big program will have the effect of increasing your tax bill and decreasing your home’s value as fewer and fewer can afford the tab every 6 months.
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