Just listed: Property taxes outweigh perks, state survey says
Source: Michele Derus, Milwaukee Journal Sentinel

MILWAUKEE, WI — March 21, 2004 — Homeownership improves the quality of personal and family life -- but at an unacceptably steep price in property taxes, the Wisconsin Realtor Association's "Spring 2004 Quality of Life" poll shows.

The association's survey of 600 Wisconsin residents ages 18 and older found that 81% see homeownership as a lifestyle boost, and 63% think operational costs are acceptable, but only 34% think the property-tax ramifications are fair.

Still, taxes aren't their main worry -- the economy is. Only 45% think Wisconsin is on the right track economically, 77% see a stronger economy as personally important, and 62% worried about a shortage of well-paying jobs.

Wood Communications Group in Madison conducts the quarterly surveys. The poll, with a plus or minus error of 4%, was conducted Feb. 20 to 24. For details, see www.qualityoflife.wra.org.

Policies leave residents wet, trade group says

Every state in the country suffers floods, and no homeowner insurance policy covers the damage, according to the Insurance Information Institute in New York City.

In its annual media reminder, the trade group warned that the nation's only flood protection comes from the Federal Emergency Management Agency. Coverage doesn't come automatically, requiring community participation and a 30-day waiting period.

Costs start at $520 annually for homes without a basement and $615 annually for homes with a basement. Policies are sold through participating private insurers.

For information, call the national flood insurance program office, (800) 638-6620.

Buyers of new homes will settle for less space

New home customers realize that $150,000 won't buy them as much as $350,000, but they're quite clear about what distinctions are acceptable, research from the National Association of Home Builders shows.

The $150,000 house market will agree to: 1,800 square feet instead of 3,000; less than the bigger house's minimum four bedrooms and three baths; a garage for two cars instead of three or more; vinyl windows instead of wood; synthetic instead of natural siding; and little or no high-end brand names.

They're willing to forgo skylights, french doors and ceiling crown molding but not a kitchen island work area, solid-surface counters or a linen closet, the Washington, D.C., construction trade group said. The findings are in "What 21st Century Home Buyers Want" at www.nahb.org.

Mortgages don't match means, study says

Who gets high-priced mortgages? Those who can least afford them, according to researchers from Harvard University's Joint Center for Housing Studies.

Technological advances have revolutionized mortgage finance operations, cutting costs dramatically enough to put homeownership within the grasp of millions more people of modest means, center director Nicolas P. Retsinas said. His staff's research shows that many of these new buyers have been lured into deals they cannot afford.

What's to blame? Costly subprime mortgage products, mortgage brokers who push such products and a lax regulatory climate, researchers concluded. Their report is at www.jchs.harvard.edu/media.

More older homeowners tap equity, group says

Older people represent an ever-larger share of those borrowing more against their homes, the Consumer Bankers Association says.

The Arlington, Va.-based group, which tracked the ages of home equity loan and home equity line of credit customers, found 15% of such customers last year were 65 or older, up from 10% in 2002. Some 33% of customers were age 50 to 64, up from 31% in 2002.

Meanwhile, the young were less apt to use home equity products. Last year, 41% of customers were age 35 to 49, down from 46% in 2002, and 11% were younger than 35, down from 14% in 2002.