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I've lived here for almost 3 years, so I know the draw to FM. However, rent prices are much higher than they were in 2011/2012 and it's becoming really hard to sustain the cost of living here when our paychecks are not going up.
We were in a townhome that unbeknownst to us was in foreclosure when we signed the lease (that was under a property management company mind you) and were paying $1100/mo. At the time, we had 3 kids in 3 different schools in FM and were afraid we were going to be tossed out in the middle of the school year. It was a blessing that not only were my kids able to finish out the school year, but we were also able to stay in the same neighborhood. We found another rental in our community which is mostly owned townhomes, but it came with a price....an increase of $200/mo in rent, but we were thankful.
Now our lease has expired and we're on month to month rent. I know my landlord wants to sell because of how high her property taxes are as a result of this not being her primary residence. I am looking online and I'm shocked at these prices and don't know what we'll do when she approaches us about selling.
We cannot buy at this time because we are in process of repairing our credit due to my husband's disability back in 2010/11 because of work related accident which put us in a major bind to pay our bills after excellent credit for many years.
So, as an example-The Commons $915/mo in the Spring 2013, today $1100/mo. Millcrest Park-$1100/mo Spring 2013, today $1300/mo. These are for 3 bedrooms which is what we need.
We would much rather live in a townhome, but it's near to impossible to find something under $1400/mo.
Every time a new apartment goes up and they wanna charge $1400+ for a 3/bd apt, it makes all the "older" apt communities jack their prices up too. You used to be able to get a really nice house for that monthly price.
I have even entertained the thought of moving to Rock Hill even though it would mean moving my kids to another district and it would cause my husband to have a longer commute to work. However, after looking at the rentals on Zillow, I'm like yeah, ok. What's out there that's affordable are much older homes and townhouses in drug infested areas, so I don't really see that as the answer either. I think I could find a nice house to rent in RH for what we're paying now, but if we're not saving money, I don't see the sense in moving south. Just venting and hoping somebody understands our pain.
People are having a hard time even finding rentals in Fort Mill, I think the prices will continue to go up. It has historically been a very cheap place to live considering the great schools, low taxes, and proximity to Charlotte.
Part of the reason you are seeing higher rents; as you current landlord noted; is the higher property tax that an owner has to pay due to the home no longer being their primary residence.
I can tell you from experience and the main reason; why we put the townhome my wife owned before we were married on the market this year is due to the higher property tax that we have to pay.
We would had to increase the amount of rent our tenant paid by 155% to cover the property tax increase and still break even. Our property tax bill increased from around $850 when it was our primary residence to more then $2800 now that it is not.
The owner of the 2nd home; not only pays a higher percent (6% compared to 4% for primary residence); they also get charged a higher millage rate; and also have all the school taxes added back into the property tax bill (which in our case was almost $1,500). Which does create sticker shock.
This makes things very hard for a homeowner to breakeven when putting their house up for rent at a sub $1000 price; unless they have a very low mortgage payment; they never told the county that the house is no longer their primary residence (or the county hasn't caught that they moved) so they are still getting charged the lower price and they are making the tenant pay the HOA dues.
For example; even if the homeowners mortgage is $600 a month; you then add in the $250 for the property tax (if not more); another $125 (or more) for HA dues (if a townhome); and most management companies take 10% of the rent. That would put the rental amount at $1,084 pretty much to just breakeven.
Oh, I totally understand that Psy. I am actually kind of baffled that she agreed to rent to us as she had already paid triple the property taxes in 2012 when she had another renter in there. When she complained to my husband about it, that's when I researched it.
My only question, is this something new that started a couple of years ago, or has it always been this way? I realize property taxes are going up, but hasn't it always been triple the rate for a 2nd home?
I also don't think this is only a FM problem. My Mom just moved to St. Louis to be closer to her sisters and rent is high there too. So, I think it's living near a major city that really drives up the rent price vs. living in a rural area. My shock is in how fast it happened.
My only question, is this something new that started a couple of years ago, or has it always been this way? I realize property taxes are going up, but hasn't it always been triple the rate for a 2nd home?
I can't say when it started; but I'm pretty sure that the 6% value for a 2nd home has been on the books in South Carolina now for a while (I'm talking before the property tax law change that went into effect in 2007).
The property tax hasn't gone up for everyone. I'll give you a good example: Let say you buy a town home in SC; and then after 4 years move to NC. You don't want to sell the town home due to A) market conditions b) you might want to move back some day or c) you want the rental income. Well unless you tell the county tax office that you moved and the town home is no longer your primary residence; your tax bill will still reflect the lower 4% rate; plus the exemptions.
The above can also happen if 2 people who own homes get married and live in one home and put the other up for rent. Both homes in this case will get taxed at the 4% rate; unless again they inform the county tax office.
The reason why people can get away with it; is for most home buyers now; the mortgage companies are requiring the property taxes to be paid via an escrow account. So while the county sends a bill to the home owner at the 2nd property address; they also send the bill to the mortgage company. Since the mortgage company pays the property tax bill; the home owner doesn't need to worry about the one that was mailed to the 2nd property address. Plus they can always pull up the bill online.
Hmmm, well, she must've informed the county tax office then because she moved to Raleigh. Or she doesn't have her property taxes in escrow. I think it's ridiculous that the rates are triple that of a primary residence. I had no idea about this until she was telling my husband she wishes we would just buy from her because the taxes are killing her.
I too understand your pain. I have been living in a an apartment complex on HWY 160 for three years and the prices are astronomical now. The gentrification that is going on in this area is forcibly moving people out of the Tega Cay/Fort Mill area because of non-affordability. It is a shame that the less wealthy cannot comfortably enjoy a better school district and better neighborhood these days. I did not move down south to struggle either but unfortunately this is what is happening. I'm moving to Rock Hill on the better side of town and my daughter will attend school online as to not deal with the school district coming from Fort Mill,SC.
Yeah, I am not sure what the heck we are going to do long term. My husband works in Mt. Holly (30 minute commute) and I work in Rock Hill, so really, Fort Mill is our only option if both stay at the same jobs long term. I told my husband I would consider living in Mt. Holly (cheaper housing) if I could find a job up that way, but then you have the problem of being right in the middle of a lease when that happens, plus my youngest still has 5 more years in school and we would have to uproot her again. My son has 2 more years of high school.
It's not gentrification (rehab-ing a struggling area) so much as pure growth that is causing rates to go up. Demand creates a seller's (or landlord's) market. Prices will only go down when people stop moving here.
When we were looking to move my grandmother to the area a couple years ago, the only place that had rent she could afford on her retirement income was Millcrest.
York County rips us off !! I have a 2 bedroom townhouse in Baxter Village as an investment property and my property tax is $3670.00... throw in the HOA dues and insurance and it costs me $7190.00 a year ($600 per month). THATS 45%
of the monthly take on rent. The taxes alone are 23% of the monthly rent. That leaves $750 a month to pay the mortgage, maintenance and management fees which are $897.00 per month giving me a negative return on investment of $147.00 per month on my $75,000.00.
I think its rediculous that property investors are left to bare the burden of solely paying the school taxes every year and that large corporations are given tax breaks to move to york county... I moved here from the North east where property taxes are very expensive but they gave us way more for our money like higher and more consistant property values, much better school systems and the roads and utilities are kept in excellent shape helping to maintain high property values. I just dont see the justification to rape the small investors in our communities. My kids are grown and do not attend our schools any longer but I still have to keep paying for them while families with multiple kids pay less than I do.
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