What's Up with the Property Taxes? (Houston, Orange: rentals, buying a house, transfer)

[RG1981]

Originally Posted by Dopo

That’s the definition of an “idiot”

Not really. An idiot would be the one who gives up living in a place he really likes and moves across the country just to save $150 a month on housing.

If I were one of these Californians who bought a house 20 years ago that I can sell tomorrow for 800k, then sure, moving to Texas would be a great move. But that's not me. My best bet is to stay put.

[C24L]

the reason why the property taxes are so high here in the great state of Texas is because there is no state tax here.

[resonator]

Originally Posted by C24L

the reason why the property taxes are so high here in the great state of Texas is because there is no state tax here.

state income tax

[Ghost Town]

Originally Posted by RG1981

Not really. An idiot would be the one who gives up living in a place he really likes and moves across the country just to save $150 a month on housing.

If I were one of these Californians who bought a house 20 years ago that I can sell tomorrow for 800k, then sure, moving to Texas would be a great move. But that's not me. My best bet is to stay put.

Well if someone bought a house in CA 20 years ago, probably he/she bought it at much better price than now and property tax is frozen because of the famous prop 13. In this case a house is probably already paid off or almost paid off and moving out of CA is not very reasonable.
That's why lots of original homeowners in CA stick to their houses.

[C24L]

Originally Posted by resonator

state income tax

I meant state income tax when i said state tax.

[lipbalm]

Originally Posted by RG1981

Not really. An idiot would be the one who gives up living in a place he really likes and moves across the country just to save $150 a month on housing.

If I were one of these Californians who bought a house 20 years ago that I can sell tomorrow for 800k, then sure, moving to Texas would be a great move. But that's not me. My best bet is to stay put.

Even then, if you may not want to for other reasons. I have family that bought their homes in CA back in the 70's and 80's, homes are paid for and they could sell for almost a mil and move someplace cheaper. One of them did not sell but rent out their home and moved to Arizona to try it out, he hated it there, could not stand the heat. So he packed up and back to CA he went.

[Caro42]

Originally Posted by RG1981

I see what you're saying, VAF. The thing is that I'm barely getting by here, so I was hoping to go elsewhere and get a little more breathing room, but after doing all the long division it's probably just better to stay put.

For breathing room, you can try south Texas - the Rio Grande Valley, where real estate is far cheaper and property taxes are not as high as Houston or Dallas. The Valley demographics are mostly Hispanic - about 80 to 85% in border towns such as McAllen and Harlingen. Or - try northern New Mexico, which has a divine climate - about 70000-foot elevation. Santa Fe real estate is very high, but taxes are low and cost of living is low. Taos has more affordable real estate, reasonable property taxes, and low cost of living, though it is a bit isolated. There IS a state income tax in New Mexico but it isn't much and property taxes are low compared to Texas.

[Caro42]

Originally Posted by resonator

Right you are about MUD. I remember years ago when I moved into a new subdivision there were three mobile homes not too far away. They housed the three MUD directors (appointed by the subdivision developer). After 5 years or so they go away and the home owners can elect their own. The MUD borrowed money to pay for infrastructure to bring in water, take it away, and keep the pumps running and the chlorine working. No telling how many kick backs are involved with the legal work, bond issuance, finance companies, and actual construction. The costs are truly astounding and that explains the taxes. Oh, you still have a water and sewer bill unrelated to the annual tax.

There was a minor scandal in a little town near Houston some years ago. The MUD was able to appoint security folks and grant them peace officer status even though they were just friends of the developer. That was back before easily available weapon carry licenses. Nice ! Those guys would even ride around in their personal cars but in uniform and hassle people.

The exemptions on my homestead+65 tax bill are a bit confusing. Some of the many line items stay frozen (property value and/or tax rate). Other items are not exempt at all. There must be a dozen different taxes on my annual bill.

Not that it matters, but I think the bill you receive in 2020 is for the next year's taxes. And they want payment when billed, but offer some time extension payment options.

Property taxes are paid in arrears, that is, on the year leading up to the date of the bill. That is, when you pay property taxes, either yourself or whether your mortgage banker escrows funds to pay the taxes at the end of the year, the tax bill is paid for the preceding year, same as income taxes. The tax is based on the value of the house on January 1st of the PRECEDING year and you pay your taxes for that year. Appraisals may be done on January 1st of the year and taxes for the forthcoming year will be based on that appraisal.

[clerymary]

Unless you make more than 200k a year and live in a less than 300k house, the overall tax burden in CA might actually be lower. Yeah CA can be expensive, but there are plenty cheap places to live. I used to live in Santa Clarita some years ago. 30 min from LA and much much cheaper living. Comparable to the Woodlands where I live now. People here don't really understand the tradeoff they sign up for when they get no income tax and high property taxes. Not just in terms of money, but also in terms of unseen factors. I've lived in 6 different states and the houses in TX are just crap when compared to other places. Builders cut costs by any means necessary because they have to produce cheap houses (due to the high prop tax) and because the regulation is low. And then you wonder why your house flood so easily. Also most property here doesn't really appreaciate that well due to the prop. tax. If you bought 10 yrs ago in CA during the recession you'd be more than double by now. Not so much around here. Can you tell how much I hate property tax by now?

[donblackie]

Originally Posted by RG1981

I see what you're saying, VAF. The thing is that I'm barely getting by here, so I was hoping to go elsewhere and get a little more breathing room, but after doing all the long division it's probably just better to stay put.

Sounds like the best advice I can give is to put yourselve in a position to not barely get by. Typically that equates to making more money and saving more money.

You dont have to move here and buy a place. So move, rent a small place, work hard, make more money (dont pay state income tax) then buy a place when you are in a comfortable position. Does that sound like a strategy that might work?