Come on everyone....tell me what you know about Waco?! (Dallas: real estate market, crime)
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Problem is the CITY portion of property tax is nearly negligible - it's the SCHOOL DISTRICT portion that is 10X + the city rate, and responsible for about 75% + of the overall property taxes, and inescapable in most of Texas, unless you have AG exemption (on the land only, unless you 'sneak in' a 'barndominium')
If you pay less for a house to begin with (compared to many other regions of the country), then it really doesn't matter that much what the actual tax rate is. For instance, you can buy the same sort of property in Tyler, Texas (and probably Waco) for $250,000 that would cost $500,000 or $600,000 in many other regions.
Just pulling these percentages out of thin air, but I'd rather pay 3 percent of $250,000 a year in property taxes than 2 percent of $500,000. ($5000 vs $10,000.)
Oh, and then add state income tax in on top of that for a real wake up call.
Just a real life example from a couple of years ago - my husband and I were considering moving to Hot Springs, AR - a state with MUCH lower property taxes but state income tax. In spite of our ability to buy a larger, newer home for the same price as our current home, and lower property taxes, it would have still cost us more money per year to live in Arkansas (no thanks!) than it would in Texas - about $7000 more per year. My gosh, that's nearly $600 a MONTH difference, even though we were moving to a lower cost of living area with lower home prices and lower property taxes.
if the op is coming from a state with a high valuation - even like calif with prop 13 - unless you bought 25 years ago - TX property tax rates will be less - we are moving from a 2700 sq house with 6600 per year to an 2000 sq bigger property with 4800 -
the real issue is the annual property assessor review - IMO the citizen need to pay attention who they elect and watch very carefully their elected officials how they like bonds for improvements that can be add ons - or how they spend their money at the school level - which in turns puts pressure on the tax rate-
but given the fact you sell a 1m home and can but another similar for 1/3 of the cost - property taxes should not be a real problem over 20 years unless the locals politicians get greedy - and they will-
if the op is coming from a state with a high valuation - even like calif with prop 13 - unless you bought 25 years ago - TX property tax rates will be less - we are moving from a 2700 sq house with 6600 per year to an 2000 sq bigger property with 4800 -
the real issue is the annual property assessor review - IMO the citizen need to pay attention who they elect and watch very carefully their elected officials how they like bonds for improvements that can be add ons - or how they spend their money at the school level - which in turns puts pressure on the tax rate-
but given the fact you sell a 1m home and can but another similar for 1/3 of the cost - property taxes should not be a real problem over 20 years unless the locals politicians get greedy - and they will-
California's Statewide Tax Rate is 1% of Fair Market Value at the time of transfer with a 2% annual cap for inflation.
How many areas of Texas have sub 1% Property Tax.
I know several of my friends moved to Austin and they say Taxes are high.
its 1.5% - plus all the bonds issues for schools, plus Mello Ross taxes to pay for land scaling and lighting plus if you ever pull a permit like to put in a pool or remodel a bath the tax accessor reassess to the current market - when i bought my house there in 84 the taxes were only 1400 per year - but after 3 permits its now way over 6k plus another 1 k for dumb bonds
like i said yes property tax rates are high in tx but the housing values after 1/3 of to 1/2 of a typical cali home - we for those moving from that kind of state the property tax rates are not a big deal-
the big deal is there is no Prop13 cap so elected officials can really get carried away if you don't watch them and voice your opinion with your votes- heck these tools in calif even tax your utility bills - cell phone bills as a city tax at 10% - watch closely as all these liberal transplant will steal your dollars
austin also high a very high school tax rates which is over 2% look at tyler or the smaller cities west of waco their effective tax rates are 1- 1.5% - some places its below 1%
Texas has no income tax and very light taxes on corporations and businesses compared to most other states. So the revenue for roads and cities and schools has to come from somewhere.
On balance, Texas has a relatively light tax burden, it's just tilted more towards property taxes than other forms of taxation more common in other states. So for the average middle to upper middle class working family in an average home, the tax burden in TX is going to be relatively light compared to most other states where they would be getting income tax taken out of their paychecks.
But not everyone is "average". By contrast, retired people with high end properties but low incomes will face higher tax burden in TX then they might in another state where taxes are more tilted towards income tax and not property tax.
Bottom line, Texas is a great place to make a living and get ahead, especially if you don't overextend on white elephant McMansion style housing that is common there. But it isn't the cheapest place to retire if you want your posh spread in the country.
As for the Waco area? My wife and I lived for 5 years out in the country in the China Spring area in a subdivision with 1-2 acre lots. Then we moved closer in to the Woodway area to cut the commute times and all the endless driving to kids sports and music activities which were mostly in Waco and Woodway not out in China Spring.
What you get for less taxes outside the urban area is less services and more hassles. In 5 years we saw two houses in our subdivision burn down. The response by the local volunteer fire department was ridiculously slow and inadequate with old equipment that looked like it was from the 1930s. Both houses burned completely to the ground. One year grass fires started in the rangeland near our subdivision and came within crossing one street of entering the subdivision and burning the place down. I had my kids in the car along with some valuables and documents ready to flee and there was thick smoke in the air when the fire was finally turned back. None of that would have happened in our more urban subdivision in Woodway.
In any event, nothing is for free. You want to live in a nice area with nice amenities and good schools you'll pay for it. But your property values will be higher as well. Probably less than 5% of the land area in Texas meets this definition. Mostly the nicer suburban and exurban areas around the major cities. The other 95% of Texas (by area) is going to have cheaper property, lower taxes crummier schools, and less amenities and services like nice parks, trails, fire protection, etc. etc.
Texas has no income tax and very light taxes on corporations and businesses compared to most other states. So the revenue for roads and cities and schools has to come from somewhere.
On balance, Texas has a relatively light tax burden, it's just tilted more towards property taxes than other forms of taxation more common in other states. So for the average middle to upper middle class working family in an average home, the tax burden in TX is going to be relatively light compared to most other states where they would be getting income tax taken out of their paychecks.
But not everyone is "average". By contrast, retired people with high end properties but low incomes will face higher tax burden in TX then they might in another state where taxes are more tilted towards income tax and not property tax.
Bottom line, Texas is a great place to make a living and get ahead, especially if you don't overextend on white elephant McMansion style housing that is common there. But it isn't the cheapest place to retire if you want your posh spread in the country.
As for the Waco area? My wife and I lived for 5 years out in the country in the China Spring area in a subdivision with 1-2 acre lots. Then we moved closer in to the Woodway area to cut the commute times and all the endless driving to kids sports and music activities which were mostly in Waco and Woodway not out in China Spring.
What you get for less taxes outside the urban area is less services and more hassles. In 5 years we saw two houses in our subdivision burn down. The response by the local volunteer fire department was ridiculously slow and inadequate with old equipment that looked like it was from the 1930s. Both houses burned completely to the ground. One year grass fires started in the rangeland near our subdivision and came within crossing one street of entering the subdivision and burning the place down. I had my kids in the car along with some valuables and documents ready to flee and there was thick smoke in the air when the fire was finally turned back. None of that would have happened in our more urban subdivision in Woodway.
In any event, nothing is for free. You want to live in a nice area with nice amenities and good schools you'll pay for it. But your property values will be higher as well. Probably less than 5% of the land area in Texas meets this definition. Mostly the nicer suburban and exurban areas around the major cities. The other 95% of Texas (by area) is going to have cheaper property, lower taxes crummier schools, and less amenities and services like nice parks, trails, fire protection, etc. etc.
High Taxes don't prevent homes from burning... 3,000 homes were lost in the Oakland Fire and Oakland is not a low tax area.
The trend for many I know is to leave the city for the county... less services in exchange for less taxes seems fair.
High Taxes don't prevent homes from burning... 3,000 homes were lost in the Oakland Fire and Oakland is not a low tax area.
The trend for many I know is to leave the city for the county... less services in exchange for less taxes seems fair.
Just so you understand the trade offs. Many people moving to TX actually have no clue until it is too late. They buy fancy homes in spread out developments way out in exurban areas when arrive, then after they are settled they start wondering why their internet sucks and why they can't get cable TV, only satellite, and why it takes forever for the local sheriff deputy to show up for a 911 call, and why the local volunteer fire department drives what look like glorified pickups or old farm trucks painted red.
And you don't even have to be far removed... when I lived in Washington I was only 10 minutes from the State Capital but in rural county... no internet... too many trees for satellite, well water, septic, haul your own trash, etc... but it was heaven as it was a park like setting with a salmon bearing stream and saltwater with a dock...
It was like being a million miles away and only 10 minutes from the State Capital...
I do agree that many are ill prepared for rural living... some adjust and some don't and others want to make their rural refuge into what they left behind with sidewalks, shooting bans, streetlights...
I'm in the high desert of So, Cal so I know about heat! Hate it ad the humidity, but seems those are both all over Texas! I can't afford Dallas and Austin, cause of the high property taxes. I know there is no state tax so the state has to get funds somewhere, but still...that adds to the mortgage payment (when impounded) and that kicks me out of the ball park for most homes that are on the market! So I was hoping maybe Waco area might have a bit more.... I want to be on the outskirts of the town...any suggestions?
Why Texas?
If you want the south, why not Mississippi, there is a very nice lake there. Or Alabama, Mobile is nice and the whole chain of lakes up the Tenn-Tom water way are nice. The panhandle of Florida is nice and if you get off the coast not too expensive.
If you really don't like the heat, Rapid City is nice, it is probably one of the most underrated towns around. It has a conservative culture without a lot of crime and it is in the Black Hills. Spearfish, at the bottom of Spearfish canyon is one of the best places in the country to retire. It has mild micro climate, but a few minutes and you are in the mountains. Take the highway around to east and you go through the craziness of Strugess and a little further into the big town of Rapid City.
If you are retired and can take a 4 month trip in the winter, Northwest Minnesota is nice. The summers are glorious and the people are the best in the world.
However, if Texas is your plan, what about San Angelo, it is a desert town that is big enough without being too big. It has lakes.
On the other hand, if you can deal with the heat in Waco, you can deal with the humidity in East Texas. There are some big things going on at Toledo Bend near Fairmount. Now is the time to buy there. But if you go, plan on joining a church and enjoying fishing, hunting and gardening because there is little else to do. (Right now)
If you need a town, outside of Tyler is your best bet. The city is big enough to have medical facilities, close enough to Dallas to catch a flight out to escape the heat, and it has lakes on both sides of it.
Then again there is an area along the St. Croix river in Wisconsin (south of I-94) that the locals claim is much milder that Minnesota. It is a beautiful area and not terribly expensive.
Cheers
Qazulight (Been around some, hanging out in southern Oregon now)
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