4 ms·

Theoretically the same can be said for all homes as property tax in effect means the state owns your land and by default your home. Michigan recently had a spat

Theoretically the same can be said for all homes as property tax in effect means the state owns your land and by default your home. Michigan recently had a spate of bad news events where tax commissioners were confiscating and selling homes for even small amounts. Worse the homeowner, if receiving any funds at all from the sale would see a paltry amount. I look at it this way, how long do I keep my home if I stop paying the nearly four thousand a year property tax? I count myself lucky as family friends in up North pay three times that for a postage stamp lot and older home

ghaff 6y ago
Furthermore, there are a bunch of good reasons to rent rather than buy, especially if you're younger. I've lived in the same (owned) house for over 20 years now. But, when I was younger, I moved around. And, even when I ended up living in the same place for about 10 years, I appreciated knowing I could up and move without a whole lot of friction. ADDED: And for most homes, you have maintenance, utilities, etc. (And for a condo, condo fees.) I don't have a mortgage but my house still costs me something >$500/month.
- sologoub 6y ago
  This only makes sense if the market is flat-to-declining. Otherwise, for then a mostly flat market this is bad financially - when you pay your mortgage, you are also building equity. It’s a small amount initially, but the share grows over time as balance and the required interest shrink. Depending on if you took a 30 or a 15 year loan, the 10 years in one place would have either given you a decent amount of savings or a close to paid home. If you need to move, sell and take your equity less costs of sale, still better than just your rent deposit.
  - ghaff 6y ago
    Yes, but that 10 years was right out of my second grad degree and I had no savings (and a little debt). There's no way I was jumping right into buying a house/condo even if I wanted to, which I didn't. And housing was fairly flat where I was living at the time. I also just wouldn't have wanted the effort associated with a house at the time.
    - kaybe 6y ago
      In addition, at least here the taxes and fees add another 10 to 15 percent. If the house does not increase at least that much in value within the time you live in it you lose money, plus the trouble and work of buying and selling.
      - deleted 6y ago
        [deleted]
hourislate 6y ago
>the same can be said for all homes as property tax in effect means the state owns your land and by default your home. Every year I show my wife and kids the 14-15k dollar property tax bill and tell them isn't it nice that we get to pay all this money for the privilege of owning a home here (DFW).
- Mauricebranagh 6y ago
  But no state income taxes in Texas. FYI that is over four time the maximum property tax in The uk and that includes the 10 mill plus mansions in London's embassy row. Edit its 4x not Twice is misremebered
  - hourislate 6y ago
    Yes, no state income tax but they make up for it in other ways. To be fair, half of my property taxes $7.8k go to fund schools. Someone has to pay for the artificial turf football field and 8 million dollar sport facility at the middle school (grade 5-8).
- ssharp 6y ago
  I live in a township with no local income tax, so property tax funds everything local -- public schools, local + county roads, local police, county sherif, fire department, libraries, etc.

ghaff 6y ago

Furthermore, there are a bunch of good reasons to rent rather than buy, especially if you're younger. I've lived in the same (owned) house for over 20 years now. But, when I was younger, I moved around. And, even when I ended up living in the same place for about 10 years, I appreciated knowing I could up and move without a whole lot of friction. ADDED: And for most homes, you have maintenance, utilities, etc. (And for a condo, condo fees.) I don't have a mortgage but my house still costs me something >$500/month.

sologoub 6y ago
This only makes sense if the market is flat-to-declining. Otherwise, for then a mostly flat market this is bad financially - when you pay your mortgage, you are also building equity. It’s a small amount initially, but the share grows over time as balance and the required interest shrink. Depending on if you took a 30 or a 15 year loan, the 10 years in one place would have either given you a decent amount of savings or a close to paid home. If you need to move, sell and take your equity less costs of sale, still better than just your rent deposit.
- ghaff 6y ago
  Yes, but that 10 years was right out of my second grad degree and I had no savings (and a little debt). There's no way I was jumping right into buying a house/condo even if I wanted to, which I didn't. And housing was fairly flat where I was living at the time. I also just wouldn't have wanted the effort associated with a house at the time.
  - kaybe 6y ago
    In addition, at least here the taxes and fees add another 10 to 15 percent. If the house does not increase at least that much in value within the time you live in it you lose money, plus the trouble and work of buying and selling.
    - deleted 6y ago
      [deleted]

hourislate 6y ago

>the same can be said for all homes as property tax in effect means the state owns your land and by default your home. Every year I show my wife and kids the 14-15k dollar property tax bill and tell them isn't it nice that we get to pay all this money for the privilege of owning a home here (DFW).

Mauricebranagh 6y ago
But no state income taxes in Texas. FYI that is over four time the maximum property tax in The uk and that includes the 10 mill plus mansions in London's embassy row. Edit its 4x not Twice is misremebered
- hourislate 6y ago
  Yes, no state income tax but they make up for it in other ways. To be fair, half of my property taxes $7.8k go to fund schools. Someone has to pay for the artificial turf football field and 8 million dollar sport facility at the middle school (grade 5-8).
ssharp 6y ago
I live in a township with no local income tax, so property tax funds everything local -- public schools, local + county roads, local police, county sherif, fire department, libraries, etc.