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Old 09-22-2011, 12:17 PM
 
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Originally Posted by StealthRabbit View Post
I drive a $35 car.
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Old 09-22-2011, 06:24 PM
 
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I built a house using cash instead of getting a mortgage. For me, it was the biggest mistake of my life. Would have better to mortgage and keep the cash. Now that we want to move and houses aren't selling, we could have opted for foreclosure. Our situation is more complicated than that, but I'd never pay cash again. If you go with a mortgage, perhaps you'd want to make a sizeable down payment?
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Old 09-23-2011, 12:22 AM
 
Location: Sequim, WA
786 posts, read 1,907,107 times
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All the money considerations aside...some of us just have a psychological need to feel that we own the house we live in. My wife and I seem to be in that category. The house is paid off...and...thankfully, our property tax is much lower than StealthRabbit's! But then...that's what StealthRabbit gets for having such a nice place. The state must punish StealthRabbit for that!

Yet....there is a side to me that wishes we did not own this home so we could easily get up and move. That is...it would be much easier if I could convince my wife to move.
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Old 09-23-2011, 03:41 AM
 
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Quote:
Originally Posted by mrgoodwx View Post
The house is paid off...and...thankfully, our property tax is much lower than StealthRabbit's!
That can change and almost certainly will. I had low prop tax when I bought in Texas in' 79, but by the time we sold in '99 the tax had more than doubled. It's doubled again since then. Insurance went through the roof too.
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Old 09-23-2011, 06:46 AM
 
Location: SW MO
23,605 posts, read 31,482,868 times
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Quote:
Originally Posted by StealthRabbit View Post
won't work for all... my mortgage payment = $346/mo, taxes $997/mo. I'm not gonna be impounding TAX $$ and let them get the interest on that too!
Under those circumstances, don't blame you. In our case, taxes are under $750 a year and insurance, including an umbrella policy, are less than $1,000, and that's for excellent coverage from a group I've been doing business with for almost 50 years, so neither is a big deal. My suggestion was for others similarly situated.
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Old 09-23-2011, 11:50 AM
 
Location: Sequim, WA
786 posts, read 1,907,107 times
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Quote:
Originally Posted by Bideshi View Post
That can change and almost certainly will. I had low prop tax when I bought in Texas in' 79, but by the time we sold in '99 the tax had more than doubled. It's doubled again since then. Insurance went through the roof too.
Yep...that's true. At least we have a long way to go before our property taxes are as high as StealthRabbit's. But...we also have a state income tax (and Washington doesn't). Our insurance automatically rises every year, especially since we made the horrible mistake of actually filing a claim 3 years ago.
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Old 09-25-2011, 11:52 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,569 posts, read 39,952,759 times
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Quote:
Originally Posted by mrgoodwx View Post
Yep...that's true. At least we have a long way to go before our property taxes are as high as StealthRabbit's. ...
My Property Taxes took ~ 10 yrs to go from $800/ yr to $12,000/yr. Most increase came in last 3 yrs, as they doubled assessment every yr. ESPECIALLY as I fought them in court, as they beat me into submission by hammering me the next yr. (statically my taxes raised 500% MORE than my 42 neighbors within 5 miles the yr following a court battle on my part.)

They have FINALLY dropped valuation to where I was fighting for, but they have raised levy so taxes actually increase again...

WA state voters passed a property tax increase CAP / yr, but WA supreme court struck it down on the reasoning that counties would have to cut essential services... (which they have done in-spite of MORE $$)

Mortgage vs. cash is really a personal comfort AND financial issue. Some folks like the warm fuzzy of having a place paid off.

I can emtionally cover those issues by having at least one rental home paid off, and cash reserves to write a check for my existing mortgage any day I choose. Currently paying less than 3% on mortgage (LIBOR). I made a perceived value move of 50% gain in the last 2 months in remodeling my latest rural farm property purchase and fixing and renting it out. (not a bad return on <3% mortgage $$). Since the government THINKS my cheap cost basis home is so valuable it becomes an asset I may need to leverage. (due to increased costs beyond comprehension... This is the 3rd time in my family history of being 'taxed-off-the-farm'. (it is QUITE burdensome to CREATE / BUILD a farm (takes yrs to develop soils, crops, barns, fences, forests...)

My situation is a bit unique in that my NICE home was built with by my own 2 hands with MUCH salvaged / surplus material I had collected to help establish a cost basis under $100k for a view 'retreat' home in a National Scenic Area (restricted development). BUT... I'm taxed on the perceived market value, not cost basis. (BTW: there have been ZERO offers for 2 yrs when priced 50% less than county perceived valuation)

Hint... If you want to build a cheap home... frequent your Habitat ReStore or local deconstruction non-profit. I was able to remodel this latest joint for under $1000 in materials (including 6 decent sized insulated windows). When building, I collect stuff, THEN design home around available CHEAP materials. I HOPE I'm done building homes after doing so as 'homeschool projects for my kids. BUT I so want a dinky 100% energy 'free' home, maybe I will build with grandkids... In the meantime I might re-write the book... "The Low Tax Home' I think it is out of print, and very dated and regionally specific (Vermont, IIRC).

RE my:
Quote:
$35 car (that gets 50 mpg on FREE waste oil)
. That is one of the expensive ones (bought at towing company auction). Check your neighbors brier patch for a free-bee-Rabbit I don't have AC, but then I don't live in TX (yet). I will be looking there this fall for cheap properties, I hope many folks are fleeing and looking to liquidate homes on rural acreage. I do fire mitigation as a PT job, might be time to move south for the winter. (I will keep my WA home for 'rainwater collection' (& since I can't seem to sell it...)
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Old 09-25-2011, 05:44 PM
 
Location: Sequim, WA
786 posts, read 1,907,107 times
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It sounds as if the state is depending on you to get their budget out of the red. That's an incredibly-fast rise in taxes. Mine went up about 50% one year...about 15 years ago. I fought and lost. Shortly after that, there was a new law in which the county was not allowed to raise rates over 3 percent per year + whatever additional taxes voters approved...unless the property changed hands. So...there has been an automatic 3+ percent increase every year since then. But once the new law went into effect, people who bought houses were seeing taxes doubled (or more) as the new purchase was re-evaluated. We ended up with people in adjacent houses of similar value having tax bills in which one was double or triple the other. That practice was called "tax lightning," and now that has been struck down as unlawful. I'm not sure what happens next...
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Old 09-26-2011, 06:18 AM
 
16,437 posts, read 19,138,131 times
Reputation: 9518
Absolute robbery.
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Old 09-26-2011, 10:08 PM
 
16,437 posts, read 19,138,131 times
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Quote:
Originally Posted by StealthRabbit View Post
Some folks like the warm fuzzy of having a place paid off.
Which is never if they can jack the property taxes up to the point that you can't pay them and they take your "paid for" home.
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