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Old 08-14-2013, 06:37 AM
 
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Quote:
Originally Posted by pepe1 View Post
The difference in the cost of housing is not as large as it would first seem. Property taxes in the Minneapolis area are about 1/2 of what you pay in the Des Moines area. So yes, the sales price of housing in Minneapolis is more, but the property tax is much less. Net effect is the total cost of housing is much closer to being equal than one would first assume.
Are you sure about that? I know Iowa's property taxes are a little higher than MN but Minneapolis proper has very high taxes compared to the suburbs. Overall, however, MN does have higher tax burden than Iowa.

http://www.wdm.iowa.gov/index.aspx?page=509

http://apps.ci.minneapolis.mn.us/ass...Estimator.aspx

On a $300,000 house, Des Moines area $5639, Minneapolis $ 5264. Move out to the suburbs in the TC's and that same house is in the $3000-4000 range.
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Old 08-14-2013, 07:19 AM
 
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I'm reasonably sure. Granted I have not lived in Minnesota for 10 years now, so unless things have changed drastically in that time - but your numbers seem to substantiate my claim. You've figured $5639 for the property tax in suburban Des Moines versus $3-4000 in suburban Minneapolis. Not quite 1/2, but these are rough estimates we are working with.
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Old 08-14-2013, 08:23 AM
 
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Quote:
Originally Posted by pepe1 View Post
I'm reasonably sure. Granted I have not lived in Minnesota for 10 years now, so unless things have changed drastically in that time - but your numbers seem to substantiate my claim. You've figured $5639 for the property tax in suburban Des Moines versus $3-4000 in suburban Minneapolis. Not quite 1/2, but these are rough estimates we are working with.
Minneapolis proper, and St. Paul for that matter are pretty much the same as Des Moines proper though. Income tax is higher here too so while your house payment with taxes/insurance might be $100/more a month, maybe, it's still going to be more expensive to live here overall. It's still no where near half.
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Old 08-14-2013, 08:45 AM
 
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Quote:
Originally Posted by golfgal View Post
Minneapolis proper, and St. Paul for that matter are pretty much the same as Des Moines proper though. Income tax is higher here too so while your house payment with taxes/insurance might be $100/more a month, maybe, it's still going to be more expensive to live here overall. It's still no where near half.
You're not quite comparing apples to apples. The calulator you have found is for West Des Moines. West Des Moines is not Des Moines. Just like South St. Paul is not St. Paul. West Des Moines has the lowest tax levy in the Des Moines area at $36 per 1000 of assessed value. The City of Des Moines has a tax levy of $46 per 1000 of assessed value (roughly 25% higher).

Further exacerbating the discrepency is the fact that your City of Minneapolis calculator is using market value as the input and the West Moines calculator is using assessed value. Assessed value is not market value. Assessed value can and usually is less than market value - sometimes substantially less. The data you have posted seems to support my claim that property tax is about 1/2 (rough numbers) in Mineapoils than Des Moines. Which makes sense since I've lived both palces and have a pretty good idea on what I have been paying.

Income tax? Depends where you fall in the tax brackets - and you catch the highest tax bracket at a fairly low income in Iowa. But I don't even want to get into that argument with you on income tax as Iowa's income tax is more convaluted than this property tax issue we're discussing.
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Old 08-14-2013, 08:59 AM
 
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Pepe1 is correct, I live in Des Moines proper and I pay over $4k a year in an assessed property of half that which was cited. I knew they were cheaper, but almost half makes a big difference.
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Old 08-14-2013, 09:01 AM
 
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And I know my income taxes are going to be lower in MN by over $100 a month. I've already had the math done on that.
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Old 08-15-2013, 06:15 AM
 
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Originally Posted by rambling homebrewer View Post
And I know my income taxes are going to be lower in MN by over $100 a month. I've already had the math done on that.
Maybe but your overall taxes are going to be higher most likely..MN ranks 7th, Iowa 26th..

...http://taxfoundation.org/sites/taxfo...ocs/ff2013.pdf

We are doing the reverse and are thrilled that costs/taxes overall in Iowa are lower....as well as housing costs overall but $100,000+
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Old 08-15-2013, 03:51 PM
 
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Quote:
Originally Posted by golfgal View Post
Maybe but your overall taxes are going to be higher most likely..MN ranks 7th, Iowa 26th..

...http://taxfoundation.org/sites/taxfo...ocs/ff2013.pdf

We are doing the reverse and are thrilled that costs/taxes overall in Iowa are lower....as well as housing costs overall but $100,000+
I wouldn't necessarily count on taxes being lower in IA. We've established property taxes run quite a bit higher in IA and income tax is entirely dependant on where you fall in the tax brackets - a low wage earner or an immensely wealthy person is probably better off income tax-wise in IA, but if you have a solid middle class income of say $65k, you're paying 9% income tax in IA versus 7% in MN. Sales tax runs 6 to 7% in IA depending on county and MN has 6 7/8% sales tax with a added benefit of no sales tax on clothing.

But all this is really neither here nor there in relation to the original post. I specifically brought up the property tax issue becasue it directly relates to the differential in housing cost mentioned in the original post. The list price of housing in Des Moines (vs. Minneapolis) is less because property taxes are substantially more. People usually have X-amount of dollars to spend on housing per month. X being a function of principal, interest, taxes and insurance. The $100-200 per month differential in property taxes is eating into a lot of dollars that could be used towards the purchase price (principal) of a home when you consider a 30-year mortgage at 4%.
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Old 08-19-2013, 09:45 PM
 
Location: Hennepin County, Minnesota
59 posts, read 98,638 times
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Congrats on this exciting opportunity for you & your family! I hope you'll find Minnesota is everything you hoped it would be.

A few little things, but there's some great advice above:

- $400 K goes a long way in most parts of the Twin Cities, and even in the nice suburbs with good schools. You should be fine. No need to think of yourself as "cheap" with that pricepoint.

- lots of great schools, especially in the 'burbs but in some of the better Minneapolis neighborhoods as well (but price will be harder if you stay in the City)

- agree that there's tons of greenery, biking trails all over the city, but especially since you're looking at working in SLP, it's definitely worth looking at houses around there. Up & Coming 'burb it is (check out the Shops at West End development, for ex), and you're right on the Greenway, so it's an easy bike ride to the Lakes.

Any other questions I can help with?

Good luck with your move!

- Michael
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Old 08-21-2013, 09:07 AM
 
Location: Maple Grove, MN
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Edina would be a great location for you. It is very close to St. Louis Park and downtown Minneapolis. Edina has plenty of historic areas along with the upcoming burbs. Housing is a little on the higher end but for $400K you should be able to find a home that suits you well in a great neighborhood.
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