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Old 11-21-2016, 10:14 PM
 
Location: Albuquerque NM
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It sounds like the OP prefers City #1 but is worried about the property taxes increasing over time. Doesn't Tyler have an over age 65 homestead exemption that limits the school taxes? That might help.
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Old 11-22-2016, 07:34 AM
 
Location: Near a river
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Why not a less expensive house or condo in City 2? If you're 60 or older, that may prove a good idea. As you age you need less space and amenities that you have to keep up or hire out for.

How much space do you really need? To me, location is more important than size of home.
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Old 11-22-2016, 07:42 AM
 
Location: Near a river
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Quote:
Originally Posted by bpollen View Post
Texas homeowner's ins. rates are about half of the other city I'm considering. Guesstimating my HO ins. would run $1,200-$1,500/yr max (a low claim area). In the other city it would run $2k - $2,500k, depending on details of the house (a high claim area).
I would suggest finding out the % rate of annual HO ins increases in the Louisiana location over the past 5 years. If you can detect a consistent pattern of % year to year, that will give you a hint about costs in coming years. A high claim area could well mean unexpected high jumps in any given new year.
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Old 11-22-2016, 07:49 AM
 
Location: Living on the Coast in Oxnard CA
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Quote:
Originally Posted by halberto9 View Post
The 2% increase limit is good, it helps you plan somewhat for your retirement living expenses. Am I correct though, that if the valuation decreases it really won't lower your taxes since most all surrounding properties will also see decreases whilst the municipal budgets remain the same?
If the value goes down so do the taxes. When we bought our home the next year prices went down and our property taxes went down with it. What you do have is a baseline value, the original assessed value at the time you bought the home. For us when prices went back up the home was reassessed at baseline plus 2%.
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Old 11-22-2016, 07:53 AM
 
Location: Near a river
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Quote:
Originally Posted by SOON2BNSURPRISE View Post
If the value goes down so do the taxes.
Not so here in Mass. When the assessed value goes down the taxes go up.
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Old 11-22-2016, 08:10 AM
 
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Quote:
Originally Posted by RiverBird View Post
Not so here in Mass. When the assessed value goes down the taxes go up.
Proposition 2 1/2 limits the town-wide increase to 2 1/2% of total revenue. If assessed value goes down across the whole town, the tax rate can go up bot the total tax collected in the town can only go up 2 1/2%. When everyone is re-assessed, some people win, some people lose. On average, your taxes don't go up.

In the last 7 years, my taxes have gone up a bit but nothing like my homeowner's insurance has gone up. That's 1.6x what it was 7 years ago.
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Old 11-22-2016, 08:11 AM
 
Location: The Triad (NC)
28,500 posts, read 62,217,072 times
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Quote:
Originally Posted by bpollen View Post
My choice (I'll make up amounts, to give a sense of it all)::
Your choice would be......?????
These issues come up with youngsters starting out too..
wondering how much to allow for rent etc..

The issue for them as well is the TOTALITY of housing costs
(including utilities and HOA or any other fees it costs to live there)

For them... that number shouldn't exceed 25% of NET income (one week pay check).
It should be far less for a retiree who shouldn't have to pay a mortgage at all.
---

My taxes and insurance; plus utilities, WiFi and an allowance for occasional help...
adds up to well less than $350. per month (annualized average). No loan.

If I had the modest property costs cash invested instead...
the GROSS yield would be maybe another $350.

Which gets us to the more important issue: property cost.
More specifically, that number as a percentage of a retiree's NET WORTH.

The first $150,000 or so is about impossible to avoid (anywhere)...
but that number really shouldn't be more than 25% of the total net worth.
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Old 11-22-2016, 08:44 AM
 
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Quote:
Originally Posted by MrRational View Post
Which gets us to the more important issue: property cost.
More specifically, that number as a percentage of a retiree's NET WORTH.

The first $150,000 or so is about impossible to avoid (anywhere)...
but that number really shouldn't be more than 25% of the total net worth.
It really depends on your retirement income stream. If you're, say, a public school teacher vesting 2% per year in a defined-benefit pension with COLA adjustments, you can work 35 or 40 years and retire comfortably still paying rent and with practically zero net worth.

If you're like me where I have no pension coming and I'm going to live off a Social Security check and my retirement savings/investments, then yeah, no more than 25% of your total net worth is probably a pretty good rule of thumb.

Total cost of ownership relative to your income stream is still a pretty big deal, though. My home ownership costs will be about 10% of what I expect to see as my retirement income stream from Social Security and required minimum distributions. That's assuming I work until age 66 and defer collecting Social Security until I'm 70. If my savings got wiped out other than my primary residence and I couldn't work, an age 62 Social Security check would still keep a roof over my head but property taxes, insurance, and utilities would chew up about 25% of my check.
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Old 11-22-2016, 09:01 AM
 
Location: Northern panhandle WV
3,007 posts, read 2,174,073 times
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Quote:
Originally Posted by bpollen View Post
Thank you! This gives me hope I'll find the right house in the right place. I started looking at the time that had the lowest inventory of houses in years. I'd been looking online for over a year...then when I was ready to buy, those types of houses were gone. But it's started picking up, with more houses.

I feel as if it's taking me too long, but anything I've passed up, I look back and reconsider whether I should've bought THAT one, and I realize I made the right decision.

I'm so glad you found the right place, too. What a bargain you got. I guess it was a fixer upper? Way to go. Thanks for the pep talk and encouragement.

Yes it was a fixer upper, but much of the major fixing had been done already, New Electric 200 amp service,
AC tuned up. Plumbing updated. That sort of thing, quite livable though.
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Old 11-22-2016, 11:45 AM
 
Location: The Triad (NC)
28,500 posts, read 62,217,072 times
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Quote:
Originally Posted by GeoffD View Post
It really depends on your retirement income stream.
No... it really doesn't.
It depends on your savings/investment depositing stream.
How much of however much you have earned that you set aside over the years.

The first assumption I'm making is that income has been adequate over the decades
to have somehow or other managed to have and to PAY OFF a mortgage. At least one.

Whether you choose to remain in that specific property is a different matter...
but the NET WORTH, the equity, is there and can be shifted to other locales.

If this is NOT the case and for whatever the specific reason... then you're sunk.
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