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Fyi if all properties increase equally in value and municipal costs remain the same, so do your taxes.
by TravHatesMe 5y ago
Fyi if all properties increase equally in value and municipal costs remain the same, so do your taxes.
- vel0city 5y agoYeah, but the taxes I pay is less than a quarter of my monthly outlay of mortgage+escrow. Even if my taxes double from my home's value doubling my monthly outlay won'd double. Meanwhile my rent will easily double, probably even more than that in the same market.
- TravHatesMe 5y agoSorry I meant to say that if all houses double in value, and municipal costs don't change, then your taxes do not change. Just because the value goes up does not imply that taxes go up.
- vel0city 5y agoIf they don't change the tax rate, and my home doubles in appraised value, my tax liability on the property doubles. True, the city might reduce tax rates if property values explode like that but they might also just continue to take in the revenue. ¯\_(ツ)_/¯ Another example of why its good to be active in local politics. FWIW, I live in Texas so this place gets a good chunk of its tax revenue from property taxes. The odds of them cutting the tax rate just because your house shot up in cost at least to me seems pretty low. This is one of the problems of gentrification, where long time owners find they are unable to continue owning in the $90k house they bought 20 years ago because now they pay property taxes on a $750k property.