So are you selling your property? I'm not.
Property taxes vs home appreciation
- Thread starter CarLuver
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No but every thing has a price. If you want to migrate to quaint east coast beach town lemme know.
Thanks; I'm pretty set here. But I bet it is a great property. Well done!No but every thing has a price. If you want to migrate to quaint east coast beach town lemme know.
It’s easier in California to keep up with property taxes because of Prop 13. Other states are different. That’s why it’s full of old houses with little improvements done to them, as to not trigger a re-assessment.
Many years ago I heard an advisor on some financial show say that your house should first be a place that you want to live. If/when you sell it and make money, great, but it's better not to consider one's house as an investment. That's been my mantra ever since.
My taxes have increased about 20% over the past 7 years since purchasing the house. So, keeping up with a "normal" 3% annual inflation rate. I'm not too concerned. Additionally, there are multiple tax relief bills going through my state legislature right now and the state has plenty of cash to pay for it so I imagine they will even decrease in the coming years thanks to state subsidies.
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I have to disagree. Almost all the time if you live in a decent area you are going to make much more money than paying rent even if you have the 30 year mortgage.
I never understood this point-of-view. My house is a critical investment; if all else goes south, I have a place to live. I can rent a room or let family and friends stay to help them out.
I believe in this so much wifey and I have back up homes. And every one has appreciated beyond my wildest dreams.
That’s because you’re looking at it from your perspective where you’re capable of maintaining and doing small repairs on your properties.
But women, like in OPs case, have a much harder time keeping up with an old house. First it’s because most don’t even know how to, and second they loose their strength a lot quicker than men do. So even a simple chore as going up the attic to change the furnace filter can be outright dangerous.
Ask yourself this, if your wife was left alone for a year, would she be able to maintain and fix little things around the house without outside help? Or if your wife is capable and knowledgeable, just think of someone else you constantly need to help.
There are many elderly people in this kind of situation. Renting is a good option in those cases.
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This is true. Rentals are a business and property taxes are just one of many inputs into the rent equation.
Not to change the subject but has anyone over 62 looked at a reverse mortgage....The pros and cons of it...
Jeff, I think from your POV of home values in your area also come into play. Here in the midwest my home has not appreciated to the level that some do on the coast. so it may be an apples to oranges comparison.
Another option to look at is taking out a HELOC and investing the $$$$ at higher yield monthly rate and using the difference to pay the HELOC payment. For example if a HELOC interest rate costs you 8.00% and you can invest the funds and get a 12% yield (some closed end funds pay upwards of 13%) that is a difference of 5% that you could use for expenses, and technically the home is still an asset you own. There are other creative leverage ways to look at this and I would recommend you talk with a fee only financial advisor.
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I guess I should have added "YMMV" to my post. 
Don't get me wrong, when I'm finally able to sell my house, I'd definitely like to make a profit, but I look at my time living in the house as being cheaper than renting an apartment during that timeframe.
Don't get me wrong, when I'm finally able to sell my house, I'd definitely like to make a profit, but I look at my time living in the house as being cheaper than renting an apartment during that timeframe.
The way I look at it is that I need a place to live. I can't even rent a one bedroom apartment in my area for what I pay in interest, taxes and insurance. Anything I pay in principle on the mortgage is like a forced savings account that I'll get back eventually. My house hasn't appreciated as quickly as I would have liked, but it's not bad.
When I get to the point of not being able to maintain the house and yard, I'll be looking to downsize into a small condo or something where I live independently inside and someone else takes care of everything else outside. My Dad refused to leave his house until the end and it was a burden on us kids. I don't want to go out that way.
When I get to the point of not being able to maintain the house and yard, I'll be looking to downsize into a small condo or something where I live independently inside and someone else takes care of everything else outside. My Dad refused to leave his house until the end and it was a burden on us kids. I don't want to go out that way.
My Mom and Dad were the same way. They stayed in their home way too long. Agree 120%
All good points.
In my case, my wife's welfare is my #1 concern. I have a group of knowledgeable friends and excellent workers to deal with issues. The workers have become my friends and are there for me. Importantly, I consider our main home one part of the portfolio; enough $$ in securities is another critical component.
I understand many are not in a financial position to accommodate all this. I hate sounding pompous. I can tell you one thing for sure; being homeless teaches you a very good lesson. That lesson is, contingency planning. And I never wanna be homeless again.
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