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Yes and no,when you have time constraints like a tax foreclosure it is not always possible. The people we got the house from ran ad for an investor to get 1/2 equity for just tax money . No one took it . Why bother when you can get 100% of the house by bidding on the foreclosure
Hmmm, if I had known about that one I might have rustled up some cash.
If property taxes ever become a burden, you can always sell your home and rent - problem solved!
The property tax burden falls both on the tennant and the landlord in proportion to their respective price elasticities of demand and price elasticities of supply. Live in a "tenant's market"? then you will bear most or all of the property tax burden. Live in a "renter's market"? then you will bear little or none of the property tax burden.
Hmmm, if I had known about that one I might have rustled up some cash.
As I say, those who want to succeed will find a way. The rest find an excuse.
This is nothing new , there are lots of investors that take equity stakes all the time simply by paying off taxes or debt in companies. You need to be creative more than rich
The property tax burden falls both on the tennant and the landlord in proportion to their respective price elasticities of demand and price elasticities of supply. Live in a "tenant's market"? then you will bear most or all of the property tax burden. Live in a "renter's market"? then you will bear little or none of the property tax burden.
But you already know that.
That's basic econ but SO MANY people - here and elsewhere - insist that renters magically escape the incidence of property taxes.
to some extent renters very well do escape a good part of the expenses of owning , as many areas early on have real estate counting on depreciation to make it break even because buying cost more than renting .
there is little i can buy at market here , rent it out and make a profit day 1 . at best i can break even once i apply depreciation in to the figure .
early on my tenants in my non stabilized apartments had a bargain for years . it cost me 1200 a month maintenance and mortgage , i had an 8% mortgage which i was thrilled to get , while the max rent was 850 that i could get . depreciation made it a wash .
so it took quite a few years for things to flip . 31 years later the apartment cost 650 a month in maintenance , has no mortgage and gets 1800 a month rent .
so those early years were called paying your dues .
most of us buy far more home than we rent too , so generally rents will be lower than buying costs because for most ,especially the bulk of the population in cities with apartment houses, they will be renting less house than they would buy .
like i said the couple who gets rid of a 3 bedroom rented apartment where they raised a family and moves to a 1 bedroom after they are out likely sees better cash flow than someone hanging on to that 3 bedroom house in a desirable area .
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Location: Formerly Pleasanton Ca, now in Marietta Ga
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Quote:
Originally Posted by freemkt
That's basic econ but SO MANY people - here and elsewhere - insist that renters magically escape the incidence of property taxes.
Well I stated my example of the 2 rentals I had in California which clearly did not have the renters covering the property taxes. I noticed that I had a real life example whereas you keep spouting off your theory with no examples at all. I understand you didn't respond because I shot a big hole in what you claim.
What sporty and misty wrote is that there are incidences where tenants support expenses and there are incidences where they don't. You chose only to hear the part that supports your views while ignoring the other part that doesn't.
Speaking of basic Econ so many have posted why you are in your situation and possible solutions. Pretty basic concepts which YOU CHOOSE TO IGNORE.
Seriously, quit complaining about your situation and how the world is stacked against you and take all the time you spend here posting and spend it working a second job or sell that porn collection you keep talking about.
Basic Econ says spending money on a storage unit for your porn while making zero profit on it is a losing proposition. You should start paying attention to basic Econ that will help you and not what you think supports your whining.
The property tax burden falls both on the tennant and the landlord in proportion to their respective price elasticities of demand and price elasticities of supply. Live in a "Landlord's market"? then you will bear most or all of the property tax burden. Live in a "renter's market"? then you will bear little or none of the property tax burden.
We also pay property tax for the Hershey's headquarters if we eat a candy bar.
Hershey moved their operations to Mexico several years ago.
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