Just received the notice from our county assessor. Our property value has doubled since last year and our property taxes will as well. We can weather this, but a lot of pensioners aren't. If you are a real estate investor the future looks good, for everyone else it's going to be a nightmare.
Yep, there were a few protestors in EP today angry with rising home taxes. I guess if you buy a home as an investment like we did and the house does go up in price that's a "price" you have to pay. It's still better than giving the money to someone else in a rental. I was thinking of selling and renting but that would be stupid as my rent would be about as much as what the taxes are right now and on a loaner you get no privacy.
'does' nobody understand the concept of 'blackrock' and 'prison sex'....
"hello" from the village idiot in the 'sip....
@toldYa
#wealthSiphon
addendum: it gets mo' buTTTer as ya age and play the bs chem/pharma game via the boob tube....
y'all ain' seen shite, yet....
hence, #costa
Its crazy my house and property have tripled. If I stay here another five years I'll be a millionaire just by selling my home. Taxes are tough to swallow though.
(05-07-2022 09:12 PM)BlueDragon Wrote: [ -> ]Its crazy my house and property have tripled. If I stay here another five years I'll be a millionaire just by selling my home. Taxes are tough to swallow though.
how else did ya think they were going to subsidize the future homeless....
@20underAroof
welcome to how the real version of capitalism works...
#simpleNumbersGame
The anount of property taxes that will funnel through the system is going to be biblical.
It's a smash and grab writ large.
Real estate has always been a poor investment unless you're doing it professionally. It's similar to the restaurant industry in that everyone thinks they can do it until they lose their shirt.
In a lot of places property taxes are indexed to the county budget.
County budget for property taxes is say 800M. The tax rate is say $2.50 per 1000. They reassess values and the total property value in the county goes up 10%, then the rate would also drop 10% so they are collecting the same total amount of money.
Now when the whole county value goes up 10% it’s not like everyone went up in a uniform manner, some people went up more than others. But if your property tax is going up in this system it means your house gained more value than the average, or the county voted in a new budget number. Most of the time after a reassessment I would expect to see an actual new lower tax rate to reflect the increased total property value.
(05-07-2022 08:59 PM)stinkfist Wrote: [ -> ]'does' nobody understand the concept of 'blackrock' and 'prison sex'....
"hello" from the village idiot in the 'sip....
@toldYa
#wealthSiphon
addendum: it gets mo' buTTTer as ya age and play the bs chem/pharma game via the boob tube....
y'all ain' seen shite, yet....
hence, #costa
I agree with a lot of what you post stink and appreciate your comments, but I would not be what I am if I did not warn you that you can't hide yourself from what's coming.
There is only one way out of this and you know whom I speak of.
You don't have to respond at all, I'm not fishing for a debate about it. But if I didn't care for you at all I would never remind you.
(05-08-2022 01:04 AM)U_of_Elvis Wrote: [ -> ]Most of the time after a reassessment I would expect to see an actual new lower tax rate to reflect the increased total property value.
That's fine if it happens, but often it doesn't, and property reassessments become a way to increase taxes.
(05-08-2022 07:02 AM)Owl 69/70/75 Wrote: [ -> ] (05-08-2022 01:04 AM)U_of_Elvis Wrote: [ -> ]Most of the time after a reassessment I would expect to see an actual new lower tax rate to reflect the increased total property value.
That's fine if it happens, but often it doesn't, and property reassessments become a way to increase taxes.
it walks hand-in-hand with inflation to counterbalance the increased costs of infrastructural maintenance...
(05-08-2022 07:02 AM)Owl 69/70/75 Wrote: [ -> ] (05-08-2022 01:04 AM)U_of_Elvis Wrote: [ -> ]Most of the time after a reassessment I would expect to see an actual new lower tax rate to reflect the increased total property value.
That's fine if it happens, but often it doesn't, and property reassessments become a way to increase taxes.
It’s the way it is supposed to work most of the time so counties and schools can’t use property value increases as a back door tax increase.
“The System
There are three main parts to the property tax system in Texas:
An appraisal district in each county sets the value of taxable property each year. The chief appraiser is the appraisal district’s chief administrator and is responsible to a board of directors for its operation.
An appraisal review board (ARB) settles any disagreements between you and the appraisal district about the value of your property.
Local taxing units, which include the county, cities, school districts, and special districts, decide how much money they will spend each year. This, in turn, determines the tax rate they need to set and the total amount of taxes that you and your neighbors will pay.”
Michigan has a tax scheme that limits the SEV for purposes of limiting big tax increases to o current owners. One of the better things about the state. They set this up so that Grandpa's house in the UP that had been in the family for generations could be inherited without forcing the heirs to sell immediately due to massive amounts of taxes. There is an uncapping event if you sell the property outside of the family or to a corporate entity that doesn't have the same owners/members as the one previously holding it. Uncapping resets the clock to get taxed at full present day valuation. If you don't uncap via transfer, the SEV increase is limited to like 5% annually.
Folks building new houses are getting absolutely hammered for full value (or more) in year one. My closest neighbor just built a 3 BR 2 bath and 1,500 SF home. His house is a lot newer but I have acreage so it's worth about what my property is worth yet he pays close to 9k a year more than me due to the fact that I've owned this since 1997 and he's the 1st to have an improvement on that lot.
Nobody ever thinks of property taxes when they build. They often end up outraged with chest pains when they get the first full year's bill.
That an extra 9k in the 1st year in post-tax dollars. Depending on tax rates that is an extra $1000-1200 a month of income to the county just for the right to own a residence. And that is just the starting point... Brutal. Wonder what a retired guy like him could do with an extra $1200 in his pocket a month?
Sometimes it's cheaper to keep her.
(05-07-2022 06:51 PM)bobdizole Wrote: [ -> ]Just received the notice from our county assessor. Our property value has doubled since last year and our property taxes will as well. We can weather this, but a lot of pensioners aren't. If you are a real estate investor the future looks good, for everyone else it's going to be a nightmare.
Congrats. You are paying your fair share finally like a good democrat
(05-07-2022 09:15 PM)stinkfist Wrote: [ -> ] (05-07-2022 09:12 PM)BlueDragon Wrote: [ -> ]Its crazy my house and property have tripled. If I stay here another five years I'll be a millionaire just by selling my home. Taxes are tough to swallow though.
how else did ya think they were going to subsidize the future homeless....
@20underAroof
welcome to how the real version of capitalism works...
#simpleNumbersGame
There are two houses for sale just down the road from me. One is on the water for $2.75 million and another is on 18 Acres asking $6 million for his and says it costs $35 Thousand a month to maintain. I wonder how much they are contributing to the tax roll.
(05-08-2022 08:27 AM)rath v2.0 Wrote: [ -> ]Michigan has a tax scheme that limits the SEV for purposes of limiting big tax increases to o current owners. One of the better things about the state. They set this up so that Grandpa's house in the UP that had been in the family for generations could be inherited without forcing the heirs to sell immediately due to massive amounts of taxes. There is an uncapping event if you sell the property outside of the family or to a corporate entity that doesn't have the same owners/members as the one previously holding it. Uncapping resets the clock to get taxed at full present day valuation. If you don't uncap via transfer, the SEV increase is limited to like 5% annually.
Folks building new houses are getting absolutely hammered for full value (or more) in year one. My closest neighbor just built a 3 BR 2 bath and 1,500 SF home. His house is a lot newer but I have acreage so it's worth about what my property is worth yet he pays close to 9k a year more than me due to the fact that I've owned this since 1997 and he's the 1st to have an improvement on that lot.
Nobody ever thinks of property taxes when they build. They often end up outraged with chest pains when they get the first full year's bill.
That an extra 9k in the 1st year in post-tax dollars. Depending on tax rates that is an extra $1000-1200 a month of income to the county just for the right to own a residence. And that is just the starting point... Brutal. Wonder what a retired guy like him could do with an extra $1200 in his pocket a month?
Sometimes it's cheaper to keep her.
Fact check. It's always cheaper to keep her.
(05-08-2022 12:26 PM)BlueDragon Wrote: [ -> ] (05-07-2022 09:15 PM)stinkfist Wrote: [ -> ] (05-07-2022 09:12 PM)BlueDragon Wrote: [ -> ]Its crazy my house and property have tripled. If I stay here another five years I'll be a millionaire just by selling my home. Taxes are tough to swallow though.
how else did ya think they were going to subsidize the future homeless....
@20underAroof
welcome to how the real version of capitalism works...
#simpleNumbersGame
There are two houses for sale just down the road from me. One is on the water for $2.75 million and another is on 18 Acres asking $6 million for his and says it costs $35 Thousand a month to maintain. I wonder how much they are contributing to the tax roll.
My opinion is you've got to look at the cash flow. I made sure with my properties either they are cash flow positive as a rental or very close.
I also look at the parking situation. In one case I decided between a town house with 1-2 spaces outside of the garage and a house with room for 8 cars.
A friend of mine bought a house for 3.3 million that was just as few as 3 years ago before expanded only 800,000. It would be a lot cheaper just to have renovated than to buy a post renovated house like that. Of course property tax will eat them up at 1% assessed you are talking about $33,000 in property tax to be paid each year. Most people would be better off with multiple lower priced cash flow positive homes, IMO.
Why do people spend so much on houses that the taxes become a burdensome expense?
Why are people mad their houses are increasingly valuable?
I suppose if you sold them and made a huge profit you would be mad you had to pay taxes then too?
(05-08-2022 03:00 PM)Todor Wrote: [ -> ]Why do people spend so much on houses that the taxes become a burdensome expense?
This op was about existing homes, that people have owned for some time, get assessed at much higher values, than years prior.
Why are people mad their houses are increasingly valuable?
They are not mad about that
I suppose if you sold them and made a huge profit you would be mad you had to pay taxes then too?
Guessing you never sold a house before? You don't pay a capital gains tax if you have been the primary resident for 2 years, and if the profit is less than 250K single, 500K married, not including adding more cost basis for improvement.
We've been here since 1999. Nice house, great location, nice lot.
Waaaaaay more house than the two of us (now) need.
Would make NO sense for us to move though. We'd be paying the same for half the house in many cases, we recently looked.
Our "value" increased more than $75k in less than the past year.
Crazy ish.