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Some states - including Michigan - have programs which allow homeowners on low/fixed incomes to defer property taxes until they vacate the property.
Try doing THAT with rent. (TM)
In NJ, they freeze taxes once you turn 65, but by then it will be probably $1000 or more a month, while insurances will also go up yearly. Many people mistakenly believe once the home itself, the principal, is paid off, you are home free, but that is far and away the cheapest part of the mortgage. They can still take my house if I can't pay the ever-increasing taxes which are even now close to what I paid in rent. My rent went from $650 a month 18 years ago to $800 now. That is a much, much, lower rate than property taxes have risen, and the new tax bill and most probably new budget, are going to leave states with little option but to raise taxes even more.
Not everyone will have a million or more in retirement and will do just fine.
It depends on how your health is in old age. My mother was apparently too wealthy to qualify for subsidized home health aides, but had an income of $1500 a month (that included her pension) so not enough to pay $70 a day for 3 hours of assistance, which isn't even that much. Many people only get discharged home from our rehab because they can afford to put in a stair lift, an outside ramp and pay for home health, but the ones who cannot afford that end up as long term care residents. Many people never fully recover after a stroke, etc. because they were not able to afford $300 or $400 a month for a supplemental, and cannot afford to pay 20% of $500 a day, and so have to leave rehab after 20 days (when Medicare payments go from 100% to 80%) even if they can't walk yet. It costs a LOT to be old and sick.
In NJ, they freeze taxes once you turn 65, but by then it will be probably $1000 or more a month, while insurances will also go up yearly. Many people mistakenly believe once the home itself, the principal, is paid off, you are home free, but that is far and away the cheapest part of the mortgage. They can still take my house if I can't pay the ever-increasing taxes which are even now close to what I paid in rent. My rent went from $650 a month 18 years ago to $800 now. That is a much, much, lower rate than property taxes have risen, and the new tax bill and most probably new budget, are going to leave states with little option but to raise taxes even more.
in order to freeze taxes you need to live in jersey 10 years , your home 3 years , and have income less than 70k. but takes in nj are pretty high . i think my son is around 9k or 10k a year . but that is a lot cheaper than what our other son pays in scarsdale ny . his home is smaller and he pays 23k a year .
How could you possibly know this. You've never owned a home in your life, and base your fanciful views of homeownership on what you wish and hope ownership is. You constantly ignore the increase in taxes, upkeep, maintenance and repairs of an owned home. A renter has NONE of those.
The reality is if you have a good retirement, it won't matter if you rent or own. If you have a crappy retirement, it won't matter if you rent or own.
Yup, I am dropping a large chunk of change this week on two new air handlers and heat pumps up and down. Not standard models and eligible for top utility company rebates. Not exactly warm up stairs right now. Fortunately the fireplace helps. Home maintenance isn't cheap if done right.
in order to freeze taxes you need to live in jersey 10 years , your home 3 years , and have income less than 70k. but takes in nj are pretty high . i think my son is around 9k or 10k a year . but that is a lot cheaper than what our other son pays in scarsdale ny . his home is smaller and he pays 23k a year .
Unless its a mansion, that is crazy! The sad thing is, we looked at another house less than 2 miles from the one we bought, and the taxes on that similar home were less than $3500 because ours was just over the line dividing the townships. We happened to have the misfortune of falling in love with a house in a better school district, but we don't have kids. I guess resale will be better, but over a lifetime it won't make up for that difference.
well someone 's crazy is another persons 'this is where i want to live .
the taxes are insane in scarsdale but if you want to live in one of the most affluent towns in the country it has a cost .why do people live in beverly hills ?
the good thing is the schools are fabulous , you can be in manhattan in 20-30 minutes by train , the parks and amenities are great and it is convenient to where they both work .
day care runs them 30k so the fact the school system is tops and they don't need private school is a big savings .
there are reasons all these places are so desirable . you know what that money gets you in the better areas in manhattan , nothing! so desirable areas are always expensive .
we lived in queens raising a family . in nyc property taxes are low because we have a nyc income tax . but our schools sucked so we ended up with both kids in private school for 8 years . we would have been better off paying that much in additional real estate taxes in long island and using the public schools . we could have at least written it off .
I've seen other people do it; I know several people who bought houses early, rented out rooms, lived for free, and enjoyed rental income.
You're taking great liberty with the word "free" here, since despite your continued suspension of reality on the topic it does take money to be a homeowner even if a house is paid off. Generating income by renting out rooms is just that... income. It doesn't make their living expenses free just because it can be reconciled as a positive balance versus living expenses, anymore than someone who makes $60k and rents a home for $20k is enjoying free living.
It's also interesting that despite how much you complain about how unfair life is that you must live in a shared space, you're now spinning that around and gushing with admiration about the people you know who are doing exactly that as homeowners renting out rooms. If I was content with shared space like these people you know I could have rented rooms my entire life and come out far ahead financially compared to owning homes just by investing the difference.
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