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Importantly, it doesn't raise your rent 3-10% every year. Your property tax & insurance (usually less than 1/4th of your payment) goes up 2-3% (in most places)
by onlyrealcuzzo 4y ago
Importantly, it doesn't raise your rent 3-10% every year.
Your property tax & insurance (usually less than 1/4th of your payment) goes up 2-3% (in most places).
- S201 4y ago> Your property tax & insurance [...] goes up 2-3% (in most places). Heh, or in my case: 30% this year.
- hdespiritu 4y agoIf it's your primary residence, the homestead tax credit can offset that increase substantially https://smartasset.com/taxes/what-is-a-homestead-tax-exemption https://smartasset.com/taxes/what-is-a-homestead-tax-exempti... OP's original point still stands. Real estate in America is designed to have many economic advantages for wealth accumulation and preservation. You might even go as far as saying the economic advantages of real estate are a byproduct of regulatory capture
- nerdchum 4y ago> economic advantages of real estate are a byproduct of regulatory capture This seems correct to me. I don't think it's been specifically designed to be a store of wealth.
- nerdchum 4y agoYes, seriously. I have never seen two to three percent property tax increases.
- medvezhenok 4y agoProp 13 limits property tax increases to 2% or less in California :)
- nerdchum 4y ago2% of the current property value am I right?? the property value that can skyrocket
- onlyrealcuzzo 4y agoNope. 2% max per year from your purchase price. There's people that own $8M dollar houses in Hollywood paying less property tax than people living in $800k condos.
- nerdchum 4y agoproperty tax is based on home value. people lose their homes all the time because the neighborhood gets gentrified and their home values go up and they can't afford the property tax. insurance can skyrocket based on natural disasters in your region. a lot of the Gulf Coast has trouble getting homeowners insurance. if earthquakes ever pick up on the west coast. the same thing will happen