??? about moving to DSM area--specifically Johnston, Waukee, Urbandale (Des Moines, Altoona: sales, to rent)

[mrs_moby73]

It looks like things are moving along nicely for our potential relocation to the Des Moines area. I have been looking online at houses in Johnston, Urbandale, and Waukee which has kind of brought up some additional questions for me.

First, we are hoping to be able to buy a house but I don't have any idea about realtors or mortgage companies in the area. I would love to hear recommendations from any of you who might have had experience (good or bad) with a realtor who might know the area well. I will also eventually need to find a mortgage company that offers VA loans--any suggestions?

Secondly, what in the holy heck is up with the outrageously high property taxes??? It basically looks like you have to pay in about 2% of the value of your house in yearly taxes which seems ridiculously high, especially in a state that is going to charge us nearly 9% in income tax on top of our federal taxes. I know lots of states are having trouble paying the bills these days (ie - California, where we are currently living); but at these tax levels, is it safe to assume the state coffers are pretty flush?

Finally, if it turns out we can't buy because of all the incidental expenses we are just coming to understand, then we will probably be looking to rent a place and it would be nice to know if there are any property management companies to avoid.

Thanks so much for any help you can give! We are starting to get really excited about becoming Iowans (tax issues aside )!

[deckdoc]

taxes can be high~ but your state taxes are on income- federal tax liability ~ meaning there is no taxes on your taxes that other stats do.
Also your sales taxes are a lot less ~6% vs. calif 8.5%, And only 5% on vehicles~ liscencing fees are less

As far as being flush they are not~ but they are not in debt as they MUST balance their budget!

Another thing going for it~ housing is less than 1/2 the price of California~ even after California's great loss of value!

[mrs_moby73]

Good points deckdoc. We are definitely thankful that our cost of living expenses will go down in Iowa...that's something I need to remember and be sure to factor in.

I think the state income tax is just going to be a shock because we haven't had to pay any for the last 10 years. As a member of the military, my husband has been able to declare Texas as his state of residency and Texas has no state income tax. Basically wherever we end up we will have to consider the tax as a new expense for us.

My husband officially accepted the position in Des Moines tonight , so we WILL be moving. Now we just have to determine a timeline for our arrival. I'm sure I will be on here asking tons of questions between now and then!

[mofford]

Originally Posted by mrs_moby73

Secondly, what in the holy heck is up with the outrageously high property taxes??? It basically looks like you have to pay in about 2% of the value of your house in yearly taxes which seems ridiculously high, especially in a state that is going to charge us nearly 9% in income tax on top of our federal taxes. I know lots of states are having trouble paying the bills these days (ie - California, where we are currently living); but at these tax levels, is it safe to assume the state coffers are pretty flush?

Don't look for any improvement with the tax situation in Iowa. Chet "The Tax Man" Culver and the state legislature have done nothing but raise taxes on anything they can since he took office. I saw him on the news the other day and I quote his words "Anything that brings in more revenue for the state government, well....I'm all for it"

I really miss former governor Terry Branstad, when we lost him, we lost all of our checks and balances as far as taxes are concerned. There's nothing to stop them now, hope we don't end up like Massachusetts, even Vilsack could say no once in a great while. We need more republicans in the state house/senate or this will never end.

[Luke9686]

I think you'll really enjoy the Des Moines area. Even with the property taxes, the cost of living is still very low. Urbandale has the least property taxes I believe. Also note that you usually get a 5-10 year tax abatement (no property tax) if you buy a new home.

You'll also notice a HUGE difference at the pump, grocery store and just about every other place.

[pepe1]

There are actuall only a few communities that offer tax abatments on new construction (Pleasant Hill, Norwalk, Des Moines, Bondurant, and Altoona). Essentially the east side communities are the only ones offering tax abatment.

[mrs_moby73]

In looking at houses online, I noticed that a few of them did offer tax abatement programs. I might be wrong, but I think I also saw that an abatement program might be available for first-time home buyers (which we are because of good ole military housing). What is that exactly? A graduated tax plan?

[pepe1]

The first time home buyers is a federal program - Which is a $7500 tax credit. I'm sure if you google search the $7500 first time home buyers tax credit, plenty of info will come up...

[Luke9686]

Also if P. Hill, Altoona, and Bondurant are the only communities that offer that abatement, they are all very nice little suburbs. I grew up in Pleasant Hill which is nice.

Be carefull not to end up in the Des Moines Public School district though. I don't know about now, but when I lived there about half of Pleasant Hill (generally the older homes) were in the East High School district. I opened enrolled in the Southeast Polk district which is pretty well regarded.

[mrs_moby73]

The schools are the main reason we have narrowed it down to the three communities I mentioned. All three have excellent "grades" on the school ranking websites and really great reputations for turning out good students.

The DSM schools seem to be nearly the polar opposite from what research I have been able to do just by checking things out online. I am sure there are great teachers in the DSM school district and some students who excel, but that doesn't seem to be engrained in the "culture" of the school system from what I can tell.

Admittedly, it's hard to know about all of that for sure because I haven't ever visited any of the schools or spoken to any of the administrators.