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Thanks SCLifestyle. I was just curious regarding investment properties. I guess it's good for new home buyers looking for great deals and easier to compete against investors with their high property tax. However, as a renter, it's not good since the supply of rentals would be under control so less likelihood of price cuts from desperate landlords.
I'm looking to buy a retirement home in sc, but would have to rent it until I retire. I'm curious to know if anyone has tried to have their rental property valued, based on "The Income Approach". SC allows this type of valuation, where the consider the rental value, maintenance cost, interest and vacancy rates. I just wonder if this would produce a lower value.
Just paid tax on my 2br 2ba rental house. It valued around $98000. While owner occupied unit paying around $800, my portion of tax is around $2800. This tax law is discriminating against landlord, tenants, business owners.
Just paid tax on my 2br 2ba rental house. It valued around $98000. While owner occupied unit paying around $800, my portion of tax is around $2800. This tax law is discriminating against landlord, tenants, business owners.
You're absolutely right, there has been some murmurs that they'll reform this but yes in most cases re: columbia rental properties three months rent = 1 years prop tax. Factor in another month-month and and a half for landlord insurance too, another couple months for annual repair costs, add in tenant lapses etc etc and its tough to even break even. There have been murmurs that it'll be reformed eventually. The prop taxes are less onerous in Lex County but Richland county is where there's all the student rentals.
Just paid tax on my 2br 2ba rental house. It valued around $98000. While owner occupied unit paying around $800, my portion of tax is around $2800. This tax law is discriminating against landlord, tenants, business owners.
Homeowners (meaning people who own the house they live in) get a lower rate and tax deductions. Investment property and vacation homes are taxed at the higher rate and are not eligible for tax deductions.
When I moved to Columbia ten years ago, I looked into buying vs. renting. I was able to buy my first house for about the same mortgage payment as I would pay in rent.
Homeowners (meaning people who own the house they live in) get a lower rate and tax deductions. Investment property and vacation homes are taxed at the higher rate and are not eligible for tax deductions.
When I moved to Columbia ten years ago, I looked into buying vs. renting. I was able to buy my first house for about the same mortgage payment as I would pay in rent.
Other side of that coin ScXP is Investment property buyers buying elsewhere, here's an example someone posted a couple years ago that elucidates this
Quote:
Here's an example when I use Richland County South Carolina - Richland Online. I go to the webiste, and go to "online services", then click on "Property value & Tax Estimate Inquiry". It asks to enter your street address. I enter an address of "400 Sims", a house that's for sale. Appraised value of 2011 is $360,000. When I click Yes to "Legal Residence", it multiplies $360,000 by .04, then multiplies by millage rate of .2564, then subtracts the local option sales tax and the estimated tax comes out as $3,065.40.
When I click back and choose No to "Legal Residence", it multiplies $360,000 by .06 then multiplies by millage rate of .4931, then subtracts the local option sales, and the estimated tax comes out as $10,024.20.
On the flip side, people who do not currently have the funds for a down payment or the credit to buy a house end up paying more for rent due to rents being artificially inflated to cover the higher tax rates. Since they're paying higher rents, it takes them longer to get their credit in order/save up money for a down payment.
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Alternative Methods of Valuation
