What's Up with the Property Taxes? (Houston: HOA fees, insurance, new house)

[Redlionjr]

Originally Posted by 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?

Yeah I remember moving to Atlanta metro and just bragging on Texas cause we had no state income tax. Took me awhile and got use to having a “smaller” paycheck due to state income taxes. Fast forward and now I’m back in Houston comparing home prices in suburbia Houston vs. suburbia Atlanta and realizing I’d actually be saving more in house cost living in Atlanta metro than Houston. In large part due to property taxes. Kind of has me hesitating buying a house here considering the Richmond/Greater Katy area is the only burbs I’d settle for. But they’re the ones that have some of the highest property taxes in the metro.

Decisions, decisions, decisions. 2021 can’t get here sooner.

[pdouglas]

Originally Posted by Redlionjr

Yeah I remember moving to Atlanta metro and just bragging on Texas cause we had no state income tax. Took me awhile and got use to having a “smaller” paycheck due to state income taxes. Fast forward and now I’m back in Houston comparing home prices in suburbia Houston vs. suburbia Atlanta and realizing I’d actually be saving more in house cost living in Atlanta metro than Houston. In large part due to property taxes. Kind of has me hesitating buying a house here considering the Richmond/Greater Katy area is the only burbs I’d settle for. But they’re the ones that have some of the highest property taxes in the metro.

Decisions, decisions, decisions. 2021 can’t get here sooner.

Try Royal Lakes Estates in Richmond. 1.8% Taxes.

[RG1981]

Originally Posted by donblackie

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?

Not really. Rentals are pretty similarly priced everywhere from what I've seen and the only reason I was considering moving was because I heard there were MASSIVE savings in housing costs.

Turns out the savings aren't so massive unless you are planning to sell a house here and buy one there for half the price. As far as renting or paying a mortgage goes, the difference is negligible, and not enough to pry me out of a place that I really like living in.

[Redlionjr]

Originally Posted by RG1981

Not really. Rentals are pretty similarly priced everywhere from what I've seen and the only reason I was considering moving was because I heard there were MASSIVE savings in housing costs.

Turns out the savings aren't so massive unless you are planning to sell a house here and buy one there for half the price. As far as renting or paying a mortgage goes, the difference is negligible, and not enough to pry me out of a place that I really like living in.

Yeah the days of saving a massive amount in a good area(even good suburbs) are long gone. Curious though, you said you live in Orange County. If you don’t mind me asking, how much do you pay monthly and what was the interest in moving to Texas in the first place? Was it just the col?

[resonator]

I don't miss the 'birthday' car tax in Atlanta. 10x what the annual tag fee is in TX.

[Ghost Town]

Originally Posted by 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?

Now you are putting all the hate on Texas because of your opportunity loss.
I would probably be disappointed too if I lost that chance, but it's not Texas fault.
And I guess you are also pissed off because there are not so many liberals in Woodlands

...I hate property tax too, but it is what it is.
My personal approach is to set the tax limits that I am comfortable to pay and go from there. Buy house within those limits.
I don't see any way how the tax burden is going to be lower for me in CA because here in Texas I already set property tax limits that I am comfortable with. And don't forget the current real estate prices in CA. You still have to pay your property tax there even though the tax rates are lower. Plus state income tax.
If you can work from home all the time, FL is the best choice.

[Sugarlandbubba]

I did like the concept of property tax over state income tax but the problem is the continuous yearly increases in valuation of property (increase in taxes). Unless we're in a recession, the valuation keeps going up, hence my taxes are going up just about every year at 5-10% increase.

Where as in California, I think the valuation of your home residence is capped at 2% for as long as you live there (until you transfer the property). Prop 13?

Texas is a good place to live and work but for retirement, I will be heading to Florida.

[texas7]

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.

Coworkers who have lived in states with and without state income taxes say it works out about the same in terms of dollars for them. You pay taxes one way or the other, either to state or on property.

[donblackie]

Originally Posted by RG1981

Not really. Rentals are pretty similarly priced everywhere from what I've seen and the only reason I was considering moving was because I heard there were MASSIVE savings in housing costs.

Turns out the savings aren't so massive unless you are planning to sell a house here and buy one there for half the price. As far as renting or paying a mortgage goes, the difference is negligible, and not enough to pry me out of a place that I really like living in.

Correct. So if rentals are the same AND you arent paying state income tax, then didnt you just give yourself a increase (12%) in take home that you are now saving??!?!

[Dopo]

Originally Posted by Sugarlandbubba

I did like the concept of property tax over state income tax but the problem is the continuous yearly increases in valuation of property (increase in taxes). Unless we're in a recession, the valuation keeps going up, hence my taxes are going up just about every year at 5-10% increase.

Where as in California, I think the valuation of your home residence is capped at 2% for as long as you live there (until you transfer the property). Prop 13?

Texas is a good place to live and work but for retirement, I will be heading to Florida.

Agree