Does the new Tax plan make Illinois less attractive? (Chicago: loan, homebuyer)

[numberfive]

Originally Posted by ToriaT

Here is an interesting report on taxes. Its really geared for federal retirees but it may have application to others. Scroll down and see about sales tax, which states have personal income taxes, and which states tax retirement pensions and how. The grass may not be greener on the other side. https://www.narfe.org/pdf/StateTaxRo...axYear2015.pdf

Yes, that’s right — it’s important to focus on the overall tax burden, not just one at a time like sales tax, property tax, etc.

Some people mistakenly think “it all evens out anyway, you might pay less in property tax but more in other taxes”. That’s not true though, you can rank all 50 states by overall tax burden, or better yet, compare for your own circumstances (like retiree status).

[NewToIN75]

Originally Posted by flamadiddle

nikitakolata, sadly Wisconsin is not much better! We looked! And Indiana although much better on taxes is a bit sketchy in most areas...

Seriously? You couldn't be further from the truth there.
They're many high quality cities and towns across Indiana that aren't sketchy. In fact the number ONE place to live in America is Carmel Indiana. Carmel named best place to live in the U.S. by Niche - TheIndyChannel.com Indianapolis, IN
As someone who moved to Indiana from Illinois less than a year ago its beyond sad to see such utter lies and baseless claims made up about a good Midwestern state. You should try living here before rushing to judgement and tossing claims around.

[flamadiddle]

Originally Posted by NewToIN75

Seriously? You couldn't be further from the truth there.
They're many high quality cities and towns across Indiana that aren't sketchy. In fact the number ONE place to live in America is Carmel Indiana. Carmel named best place to live in the U.S. by Niche - TheIndyChannel.com Indianapolis, IN
As someone who moved to Indiana from Illinois less than a year ago its beyond sad to see such utter lies and baseless claims made up about a good Midwestern state. You should try living here before rushing to judgement and tossing claims around.

Hit a nerve huh? I did say "in most areas", not all. And I was referring mainly to NWI. I do like Carmel and Zionsville, but they're far removed from Chicago metro.

[NewToIN75]

Originally Posted by flamadiddle

Hit a nerve huh? I did say "in most areas", not all. And I was referring mainly to NWI. I do like Carmel and Zionsville, but they're far removed from Chicago metro.

Munster, Highland, Griffin, Whiting, St John, Chesterton, Crown Point, Lowell, Ogden Dunes, Valparaiso, LaPorte, Long Beach, and Miller Beach are very fine areas in NWI.
You didn't strike a nerve anyway.

[aga412]

Whiting?

[CGab]

Originally Posted by flamadiddle

Out in the west burbs, a home in the $700K range is right around $20K in taxes. If homeowners are stripped of deducting the extra $10K and have the ability to move, what do you think they will do?

This on top of the recent income tax increase would not be good for Illinois...

That is very true! When I lived in Plainfield I was one block away from Naperville and home values were around $500-$800k. Their property tax bills were $15-$20k and they were not even million dollar homes! Now one can argue if they can afford a home that much they can afford the property taxes, but at some point I would think one would consider that $15-$20k is an insane amount and you can live elsewhere with lower COL and put that money to better use such as retirement, etc. We now live in St. John Indiana. Most of the newer homes here start at $400k and many over a million. A million dollar home here would have property taxes just under $10k as property taxes are capped at 1% of homes assessed value. And we're only 35 miles away from downtown Chicago. Illinois can’t afford to lower taxes of any kind. Their financial situation is beyond that.

Most areas near St. John are NOT sketchy, far from it!

[My Kind Of Town]

Originally Posted by CGab

That is very true! When I lived in Plainfield I was one block away from Naperville and home values were around $500-$800k. Their property tax bills were $15-$20k and they were not even million dollar homes! Now one can argue if they can afford a home that much they can afford the property taxes, but at some point I would think one would consider that $15-$20k is an insane amount and you can live elsewhere with lower COL and put that money to better use such as retirement, etc. We now live in St. John Indiana. Most of the newer homes here start at $400k and many over a million. A million dollar home here would have property taxes just under $10k as property taxes are capped at 1% of homes assessed value. And we're only 35 miles away from downtown Chicago. Illinois can’t afford to lower taxes of any kind. Their financial situation is beyond that.

Most areas near St. John are NOT sketchy, far from it!

I'd be very nervous about investing in a home that exceeds median home value within the town and surrounding area by that much. With median home values in that part of NWI hovering in the low to mid $200s I think buying anything over $400k is a risk let alone $1MM!!! The same would hold true for someone considering a $400k+ home in say Brookfield IL. Just my personal take. I always want to be on the lower end of the value range rather than the upper end.

[CGab]

Originally Posted by My Kind Of Town

I'd be very nervous about investing in a home that exceeds median home value within the town and surrounding area by that much. With median home values in that part of NWI hovering in the low to mid $200s I think buying anything over $400k is a risk let alone $1MM!!! The same would hold true for someone considering a $400k+ home in say Brookfield IL. Just my personal take. I always want to be on the lower end of the value range rather than the upper end.

Understood, however median home values are at $260k according to statistics, but with ALL new construction going up STARTING at a minimum $320k I don’t think anyone is worried about their values as they are steadily increasing. There’s so much new construction going on it’s insane! The only reason why the median value is lower is due to many older homes (40 yrs +) being sold for around $200k due to needing extensive work. It’s hard to find a home under 5 years old here for under $350k.

As far as the surrounding towns are concerned, not worried about them! Dyer, Schererville and Crown Point are also very stable. And look at Munsters statistics, their median states $222k! Good luck finding a decent home in Munster for that price! Most homes there are exceedingly more expensive, especially if you want brand new you”re looking at $500k+, yet people are still moving there in droves!!

[CGab]

Just wanted to also add that according to City data, the median home price in the city of Chicago in 2015 was $238k, but that didn’t deter people from buying a million dollar home on the North side or in the Gold Coast. Or not buying in good areas of Chicago because of the bad areas. Same can be said elsewhere.

[My Kind Of Town]

Originally Posted by CGab

Understood, however median home values are at $260k according to statistics, but with ALL new construction going up STARTING at a minimum $320k I don’t think anyone is worried about their values as they are steadily increasing. There’s so much new construction going on it’s insane! The only reason why the median value is lower is due to many older homes (40 yrs +) being sold for around $200k due to needing extensive work. It’s hard to find a home under 5 years old here for under $350k.

As far as the surrounding towns are concerned, not worried about them! Dyer, Schererville and Crown Point are also very stable. And look at Munsters statistics, their median states $222k! Good luck finding a decent home in Munster for that price! Most homes there are exceedingly more expensive, especially if you want brand new you”re looking at $500k+, yet people are still moving there in droves!!

This is the same mindset many held prior to the Great Recession. That didn't end well.