The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: clarkfan1979 on April 20, 2016, 02:02:32 PM
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Anyone care to share their story of low property taxes?
I have always been interested in property taxes at a young age because my father struggled to pay the property taxes on our primary home growing up. He bought his house for 145K in 1989. I'm not sure what the property taxes were at the time. Maybe $2000-$3000/year. He had to sell in 2007 because the taxes were $11,900/year. He ended up getting 450K, but probably put 150K into the house over the 18 years that he lived there.
Since that experience, the topic of property taxes have been close to my heart. High property taxes also make it difficult for rentals to cash flow. Does anyone care to share their stories of low property taxes?
Please give your best estimate of what you think it's worth (not county assessed value), your property taxes and if you get a discount for primary residence.
My examples are below
Fort Myers, FL (Single Family Home)
Current Market Value = $205K
Current Property Taxes = $1,333/year
I get a discount for it being my primary house, which I will lose next year because I just moved. I imagine that it will go up to around $2,000/year.
Fort Collins, CO (Single Family Home)
Current Market Value = $310K
Current Property Taxes = $1,700/year
No Discount
Kapaa, HI (Single Family Home)
Friend's House
Current Market Value = $450K
Current Property Taxes = $850/year
Primary Residence Discount
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3 homes in California. Purchase prices were 225, 193 and 160. Now worth 950, 900 and 500. Total property taxes paid in 2015 were about 10,500. Purchased in 1998, 1996 and 1989. Sure wish I bought a dozen more.
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Screw you guys I'm going home....
To my modestly priced house with 4k in property taxes.
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$0
we rent LOL
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We pay $1050 a year on house and 25 acres of old growth hardwood. Conservation easement on the land or it would be $2k, maybe a little more. Rural Deep South, county says house and land are worth $125k, though we have $145k in land purchase and building supplies in the place. With time and the right buyer we might be able to sell it for $200-$250k, but it would definitely take time, and we'd have to throw in the backhoe to maintain the private road.
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For a few years I was paying about $800. But they jacked it up recently because the market has improved here. Now around twice that. It's a 2500 sqft recent construction near a nice lake.
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Screw you guys I'm going home....
To my modestly priced house with 4k in property taxes.
Not sure what "modestly priced" means here. But last year I paid ~$2400 on a $86000 place. Fun times.
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I bought a house for 150k on east coast of florida and pay around $1,200/yr in taxes
My parents built a house around 10 years ago for (I'm guessing) slightly under $1mil on the west coast of Florida and pay $18,500k/yr
I'm much more happy with my taxes lol
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Not low, but another data point. NW Washington. $2,300/yr for a duplex worth about $300K and $2,100/yr for a home worth about $280K (house and rental located in different cities)
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The county assessed one of my places at around $300k, taxes roughly 1%, I just turned down an offer for over three times that amount.
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Assessed at 285. Paid 335. Appraised the other day at 367 for the house and half acre, with two buildable 1/4 acre lots at 70 a piece. Just south of Portland ME. $4800 in taxes. Bought late 2011.
Parents an hour north in an economically rather stagnant area (largest town in the county with 5000 people, also poorest town), valued at 380 I think 56 acres taxes are about the same as mine. I keep telling them to get out.
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We bought a new house in mid town Houston years ago and the city failed to recognize this fact for quite a few years. They sent us a prop tax bill for the lot value only every year. They claim to re-assess with street-side inspection every other year, so I didn't feel the need to bring it to their attention.
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We have three houses in Central Oregon.
House 1 2400 sqft, Value: ~$600k, Taxes: $4400
House 2 1300 sqft, Value: ~$425k, Taxes: $2000
House 3 700 sqft, Value: ~$300k, Taxes: $1600
House 1 is our primary residence and was built in 2003 (we purchased it in 2012 from the original owners). The others were built in the 1910's. We plan to sell or rent House 1 when our kids have flown the nest (in 15 years!) and live in one of the other houses (probably #2). Similar houses to House 1 that are currently being built nearby have MUCH higher property tax bills, in the $8k range. Just insane.
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1825 sq ft 3/2, 2 car garage, .23 acre cul-de-sac lot, diving pool, Phoenix AZ -- $706 in 2015.
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this thread is making me sick.
450k home value = 12,600/ year in taxes.
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this thread is making me sick.
450k home value = 12,600/ year in taxes.
Wow... $1,000 a month! Where do you live?
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Central Texas here so not low..
House value $185,000
Annual taxes $4,400
I wonder if all of these low property tax locations offset with higher sales taxes or state income taxes....the money to run the state comes from somewhere, right?
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On about 8 acres of hardwoods with a 2400sqft house. Property taxes $500.*
*The tax assessor has for some reason never figured out we built a house. Some day there will be an appraiser knocking on the door.
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this thread is making me sick.
450k home value = 12,600/ year in taxes.
Wow... $1,000 a month! Where do you live?
beloved state of new jersey. A friend of mine just sold his 5 bedroom 5 bath home value 875,000 Taxes 24,500/ year. Not sure if that makes me feel better or more sick......................
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this thread is making me sick.
450k home value = 12,600/ year in taxes.
I'm actually doing better than someone! $550k with a $12K anchor. It hurts :(
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$0 - We rent as well.
Our rent/utilities/internet/maintenance are actually around the median taxes for our county.
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FWIW: Renters DO pay property taxes. They just don't usually see the bill. If the amount of rent doesn't at least cover property taxes and expenses, your landlord is doing something wrong.
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Central Texas here so not low..
House value $185,000
Annual taxes $4,400
I wonder if all of these low property tax locations offset with higher sales taxes or state income taxes....the money to run the state comes from somewhere, right?
That's what you'd think, but I moved to NJ recently...property taxes on normal houses run $10k/yr, tolls are absurd, state income tax is higher, and sales tax is similar.
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FWIW: Renters DO pay property taxes. They just don't usually see the bill. If the amount of rent doesn't at least cover property taxes and expenses, your landlord is doing something wrong.
Ding Ding Ding! Winner! :)
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18.71 acres of land. $109/year. Ag zoning FTW.
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Toronto, Canada. Downsized house which had 12K taxes and now only pay 5,200/year. This is in a teeny tiny house in a good area. I'm happy.
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140 Acre farm, home, garage and two barns conservatively valued at $900,000, taxes approx. $3,800.
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Central Texas here so not low..
House value $185,000
Annual taxes $4,400
I wonder if all of these low property tax locations offset with higher sales taxes or state income taxes....the money to run the state comes from somewhere, right?
That's what you'd think, but I moved to NJ recently...property taxes on normal houses run $10k/yr, tolls are absurd, state income tax is higher, and sales tax is similar.
Not when you're in SC. Here, they just let everything go to crap. ($600 of property tax per year and 6% state sales tax)
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$4100 or so a year, bought it for $175,000. So, 2% a year. It's a big chunk.
But much better than the house I sold for $315,000 near Philadelphia where I paid $10,905 a year. That was painful.
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700/year on 250k house. But they figure your taxes on the age of the home. So when we lived in a new home the taxes were higher. OUrs was built in 1950 and was totally remodeled but they don't care about that. No state income tax either but much more limited services then in other places.
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$4100 or so a year, bought it for $175,000. So, 2% a year. It's a big chunk.
But much better than the house I sold for $315,000 near Philadelphia where I paid $10,905 a year. That was painful.
WHAT????? The 5,200 I pay yearly is on a 1.2 million house.
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$4100 or so a year, bought it for $175,000. So, 2% a year. It's a big chunk.
But much better than the house I sold for $315,000 near Philadelphia where I paid $10,905 a year. That was painful.
WHAT????? The 5,200 I pay yearly is on a 1.2 million house.
I only pay 4.07% in income taxes to state and local governments, and the state sales tax doesn't apply to most things I buy. So, it's not entirely bonkers, but I'm sure it depresses home prices substantially.
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I have a few rentals in Ohio. We contested the tax assessment on each. Our range now goes from 411-1230 per year, average being $606 per door. The ones over 1,000 are most duplexes. Some tax bills were cut in half going through this process.
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Colorado, house value $340,000, tax is $650 per year.
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Florida: $300k home value, $3k in RE taxes. I paid $12k in New Jersey on a slightly more expensive house.
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IN for pics of the Kapaa house! :) Love that area!
House value around 190k, prop taxes over $4k, Texas. No state income taxes but we get soaked on prop taxes & sales tax.
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I pay about $1100/year on a house in Portland worth north of $350k. Property taxes in Oregon were pretty much frozen by law in the 90s, when my neighborhood was a battle zone and you couldn't give the houses away.
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My 1300 sq ft small 125k starter home in Baton Rouge cost me about 2k/yr in taxes before homestead exemption.
Our dream 10 acre property in different low population parish cost me 13 bucks a year. Neighbors havent been reassessed in 10 years. The statement is only 3 lines of expenses that i cant recall but it amounts to "roads, bridges, sheriff" ha!