If you were to buy now and live in later... (Cleveland: house, neighborhoods)

[C-rob2727]

Originally Posted by bjimmy24

Tax abatements might be able to attract some people back, but long term I think they'd do better to just across the board lower all taxes.

The tax abatement program has been around for a while but it's really starting to pick up steam now. I just got off the phone w/a friend who's looking to sell her house in University Hts to build new in Ohio City. She can get into a nicer house in a better neighborhood for almost what she's paying there due to the tax abatement.

[teacherdad]

Where or whom do you call to ask about tax abatement areas?

[C-rob2727]

Originally Posted by teacherdad

Where or whom do you call to ask about tax abatement areas?

It only applies to the city of Cleveland. I'm going to save almost 80k in property taxes by the time my abatement expires.

Here's some info:
Tax Abatement | City of Cleveland

[teacherdad]

OK, so I just need to make sure it's within the city limits? I'll read that link later today. Thanks!

[bjimmy24]

Originally Posted by teacherdad

OK, so I just need to make sure it's within the city limits? I'll read that link later today. Thanks!

Well you also have to spend considerable time and effort and money rehabbing a property and making certain kinds of improvements. It's good if you want to do that, but it's certainly not a free lunch either. A straight up tax abatement with no strings attached would be much better. But if you want to live in city limits and have a bit of extra time and creativity, go for it!

[WRnative]

Shaker Heights has many properties that sell for a fraction of replacement cost, even if you build with modern materials and workmanship instead of the higher quality materials and craftsmanship used in those houses. You get a lot of house compared to other areas, and superior services as well. E.g., many communities do not pay for waste collection, let alone pick up waste from behind homes.

The point is that market forces determine the prices of homes in Shaker Heights, considering everything including property taxes, just as they do in newer suburbs such as Mentor or Strongsville.

Property prices are even more "prohibitive" for persons of lesser financial resources in Hunting Valley, despite lower tax rates.

Persons that I know that purchased homes in SH considered property taxes as part of the total cost of ownership and still concluded that SH was a good deal for them compared to the alternatives.

Consider how much can be saved by some one able to use SH's rail rapids to commute downtown!

Those arguing that persons overly consider tax rates when purchasing homes ignore reality. Tax rates are just part of the entire cost of ownership. I wouldn't be surprised if the total cost of ownership, especially considering the federal mortgage interest deduction is lower on a per square foot basis for home ownders in SH than in Strongsville.

[C-rob2727]

Originally Posted by bjimmy24

Well you also have to spend considerable time and effort and money rehabbing a property and making certain kinds of improvements. It's good if you want to do that, but it's certainly not a free lunch either. A straight up tax abatement with no strings attached would be much better. But if you want to live in city limits and have a bit of extra time and creativity, go for it!

It's not just for rehabs as all new builds qualify as well. The process for rehabs isn't that bad at all. I did it for mine. They city links you up with a third party who is certified in green energy. Their job is to walk you thru the entire process until the city approves your application. Building new can be fun, but bringing a 100yr old building back to it's original state and beauty is something that I found extremely rewarding.

[216facts]

I think the area of Cudell near W. Blvd is poised for growth. Great public transportation access: the red line station, bus lines along Detroit, and BRT along Clifton. Access to Lake Erie / Edgewater Park, proximity to high end housing in the Edgewater neighborhood and the encroaching development coming up from lower Detroit Ave.

[teacherdad]

I am a big fan of the RTA and public trans.

Thank you all for the great ideas and information!

I have some homework to do.

[WRnative]

Originally Posted by bjimmy24

It's clear to see by migration trends in the region that people have chosen to go with low taxes. One of the reasons for the exodus from Cuyahoga County in the last 5 decades.

I myself am not in favor of high property taxes. However, I get WRnative's point, that when you can buy a house for so cheap, a seemingly high property tax in percentage terms ends up not being all that high in absolute dollar terms. What I would not want though is to keep paying those high property taxes as the value of my home gets higher (hopefully).

In an earlier thread, I debunked your presumption that suburban sprawl was motivated by lower taxes. The building of freeways and more robust infrastructures and especially modern housing on larger lots were prime motivations for urban sprawl. Relatively, small post-WWII bungalows were abandoned in the inner suburbs for larger, more modern homes with attached garages (nice in Cleveland winters) in newer suburbs. Cramped lots were exchanged for much larger lots.

If properties appreciate in value in a community, there should be much less pressure to raise taxes.

Contrary to the attitude of many, local governments often are not eager to raise taxes if the additional revenue isn't needed.

Most persons don't understand how severely local governments in Greater Cleveland were negatively impacted by the Kasich Republicans slashing local government funds. Most communities have spent years trying to replace those funds with higher income taxes and real estate taxes, but most have deferred capital expenditures as they haven't been able to replace the funds. This impacts such items such as roofs, safety vehicles, and roads, likely creating a financial pit down the road.

Local news stories have reported on the sorry state of safety vehicles in East Cleveland and now even in Lorain.