Who buys high end homes?

[Trainwreck20]

I suggest you skip this website (and similar) when comparing Texas taxes. It states "Local taxes are excluded, such as property taxes and local sales taxes." so it makes most comparison worthless and misleading.

Actually, there are two columns, one which excludes local taxes and one that includes them. The data I posted included all identifiable taxes, including local.

Yes, I agree that property taxes can be viewed as unfair; however, for many people the total taxes you pay in any two states is very similar. Most middle class families will end up with the same amount of take home at the end of the year. On an individual by individual basis, you have to make your own decisions and weigh your options. We are a two income family that lives in a modest house - for us, it is a no brainer that we come out way ahead on property taxes vs. a state income tax.

I also think property taxes keep the cost of housing reasonable. If there was no property tax, the price of housing would climb much more rapidly, canceling out the benefits to many potential homeowners. I do think the homestead exemption should be much larger to protect lower-income residents - say 50 -75k, possibly more.

Tater, that is the exact place I went to get the TN property tax information that I posted . And I am not really arguing, I think you are probably quite right. I don't see why so many people decide to retire in Texas, since I don't see it as the most sensible economic decision.

[cdelena]

Originally Posted by Trainwreck20

Actually, there are two columns, one which excludes local taxes and one that includes them. The data I posted included all identifiable taxes, including local.

Those comparisons use taxes capita taxes to do a comparison. Texas has low taxes per capita but the highest tax rate on appraised value in the country.

The comparisons are misleading for practical purposes.

[riceman1998]

Originally Posted by pdxtech

Oh, and I forgot, if you were planning to buy your 400K home outright,
put that money in a 5% FDIC insured account, it would earn you
20K a year, which is another $1670 a month. For $3270 a month,
you can rent a really good place in Austin with NO DEPENDENCE
on the real estate market and liquid assets that are 100% safe.

I agree with Pdxtech's comments. My parents is facing identical situation and she felt renting an putting money into CD is a better way to go.
Keep in mind that baby grows older and when they are 3-4 years old, they'll no longer need help raise them as most of them will enter Pre-K.

[fitguru]

I want to come home to Texas so badly. I would happily sell you my brand new big expensive house here in Hendersonville with lower taxes and go back to Texas buy a smaller, cheaper and older house and buy better quality food and have a better quality of outdoor life!!!! It is up to you, but the previous posters have given you some great tools and tips as for tax savings.
P.S. My family are both 5th generation Texans, not rich but very happy and my 84 year old mother, resents, but still pays those Texas taxes!!!!
P.P.S. Just my two cents, but get near your grandchildren while you can. Taxes, smaxes. Family is what is important. (Schools here do suck (sorry), we are in the best in the county and they in no way compare to good Texas schools!)