Looking to move from north shore to somewhere else IN-IL-MI (Valparaiso: sales, 2015)

[ot1138]

Hi everyone,

Looking for some advice as we are running out of ideas. We currently live in the North Shore near Chicago but I am thinking of retiring soon but don't want to pay the outrageous IL property taxes and cost of living anymore. However, my wife loves the community, the amenities, schools and the feel of the neighborhood and it has been a real challenge finding a place like it. I'm wondering if anyone might have some suggestions for places to consider within 90 minutes of Chicago.

We're looking for a larger lot, .75-2.0 acres and we would like to keep the total land and home price to around $750k or less. 3500sq ft would be about right. Great schools are a must. We'd consider building in the French country style but build or buy, the finishings have to be high end.

We considered Frankfort but their property taxes are out of control. Just looked at St. John, IN and we loved the Lake Hills subdivision but the amenities were lacking and traffic is pretty bad. Valparaiso looks good on paper but we haven't been there yet and don't know how it compares.

Any suggestions welcome :-)

[chet everett]

I like Indiana a whole lot and think it has the potential to really outshine Illinois but the reality is that CURRENTLY the "deal" for STATE / SALES / EXCISE taxation is pretty close --
State Personal income tax Sales and excise taxes Total taxes*
Tax $ per $1000 Rank Tax $ per $1000 Rank Tax $ per $1000 Rank
Illinois 18.21 37 33.82 34 101.31 29
Indiana 24.36 25 32.64 38 100.39 3
Michigan 22.35 34 34.69 32 103.83 25
Minnesota 33.37 6 36.28 26 113.14 7
Wisconsin 31.34 10 35.90 28 117.26 5

http://money.cnn.com/pf/features/lists/total_taxes/

The offset on property taxes puts some states worse that IL.

Of course IL has runaway property taxes while Indiana is middle of the pack --
2015’s States with the Highest and Lowest Property Taxes | WalletHub®

If you really want to see a what it means to have low taxes consider Nevada, Tennesse, Florida -- 2015

[Northwest Indiana]

Originally Posted by ot1138

Hi everyone,

Looking for some advice as we are running out of ideas. We currently live in the North Shore near Chicago but I am thinking of retiring soon but don't want to pay the outrageous IL property taxes and cost of living anymore. However, my wife loves the community, the amenities, schools and the feel of the neighborhood and it has been a real challenge finding a place like it. I'm wondering if anyone might have some suggestions for places to consider within 90 minutes of Chicago.

We're looking for a larger lot, .75-2.0 acres and we would like to keep the total land and home price to around $750k or less. 3500sq ft would be about right. Great schools are a must. We'd consider building in the French country style but build or buy, the finishings have to be high end.

We considered Frankfort but their property taxes are out of control. Just looked at St. John, IN and we loved the Lake Hills subdivision but the amenities were lacking and traffic is pretty bad. Valparaiso looks good on paper but we haven't been there yet and don't know how it compares.

Any suggestions welcome :-)

For the size lot you are looking at and the type of home, Valpo is a good choice. The schools are good, and the community is growing and offers urban, suburban, and country living. Now keep in mind, the North Shore will not be replicated anywhere in NWI and as far as upscale shopping, you will still have to go into Illinois for that...if we are lucky, Munster may get some upscale shopping with the Centennial Village development, but that is it (and you won't find a 2 acre lot there unless you combine lots which probably wouldn't be allowed and would definitely blow the budget).

Another option to look at is Chesterton. You may find some options to build there within your price range and lot requirements. Again, although there are higher-end neighborhoods within Valpo and Chesterton, none of these places will have North Shore amenities, but still worth a look!

[ot1138]

Originally Posted by chet everett

I like Indiana a whole lot and think it has the potential to really outshine Illinois but the reality is that CURRENTLY the "deal" for STATE / SALES / EXCISE taxation is pretty close --
State Personal income tax Sales and excise taxes Total taxes*
Tax $ per $1000 Rank Tax $ per $1000 Rank Tax $ per $1000 Rank
Illinois 18.21 37 33.82 34 101.31 29
Indiana 24.36 25 32.64 38 100.39 3
Michigan 22.35 34 34.69 32 103.83 25
Minnesota 33.37 6 36.28 26 113.14 7
Wisconsin 31.34 10 35.90 28 117.26 5

CNN/Money: Taxes state by state

The offset on property taxes puts some states worse that IL.

Of course IL has runaway property taxes while Indiana is middle of the pack --
2015’s States with the Highest and Lowest Property Taxes | WalletHub®

If you really want to see a what it means to have low taxes consider Nevada, Tennesse, Florida -- 2015

I think those figures are at the state-wide level and aren't too applicable. The cost of living and taxes in the north shore are much higher. I personally pay $23,000 a year in property taxes and the same houses in IN are being taxed at about $9k. I also expect to have no personal income tax.

[chet everett]

I would head much further away -- Worst States for Retirement 2015-Kiplinger Indiana is only a few clicks "better" than we are....

10 Most Tax-Friendly States for Retirees-Kiplinger

[chet everett]

Originally Posted by McdonaldIndy

Do you like Indiana or not?
Your posts are very bipolar and that's confusing for the OP. Provide something helpful to the conversation. Don't confuse the OP.

Take your insults elsewhere!

The OP does not seem particularly "confused" , if they've properly structured their retirement income it may be possible that even if face a $9000 property tax bill, which is less than half what they're currently paying in Illinois -- enough of an incentive to maybe go ahead and build a huge home in the Hoosier state.

OTOH, if the OP will end up just paying more income taxes for very minimal total tax decrease it might be wise to investigate other options.

The current situation, with Illinois facing a nearly "bottomless pit" of unfunded pension liabilities, is discouraging. Indiana will almost certainly do better in the short run. That said both states have rather crummy weather, rather high risks of growing economic challenges, and best case are unlikely to be other than "middle of the pack" choices for retirees...

[Chuckity]

Originally Posted by chet everett

Take your insults elsewhere!

The OP does not seem particularly "confused" , if they've properly structured their retirement income it may be possible that even if face a $9000 property tax bill, which is less than half what they're currently paying in Illinois -- enough of an incentive to maybe go ahead and build a huge home in the Hoosier state.

OTOH, if the OP will end up just paying more income taxes for very minimal total tax decrease it might be wise to investigate other options.

The current situation, with Illinois facing a nearly "bottomless pit" of unfunded pension liabilities, is discouraging. Indiana will almost certainly do better in the short run. That said both states have rather crummy weather, rather high risks of growing economic challenges, and best case are unlikely to be other than "middle of the pack" choices for retirees...

Hey now Chet! I don't think our weather is crummy at ALL ... in fact, I don't think I would ever want to live in an area that didn't have all 4 seasons.

[Humboldt1]

Weather in Indy and southern Indiana is much more mild. Much warmer and much less snow in winter. In summer both can be hot and humid. My parents live in southern Indiana and are 5 to 10 degrees warmer in winter and have very similar summer weather, only slightly more humid.

Indy weather is much more mild than say Gary.

[summer22]

Originally Posted by McdonaldIndy

Really? That's utterly insane.
Property taxes are capped at 1% here so that's why you are seeing Indiana's property tax burden drop relative to other states. No other state aside from California has that kind of homeowner protection and it does bring peace of mind.
The income tax was cut 3% this year and it will drop another 2% at the end of next year.
I do wonder what homes you are looking at with a property tax of $9,000 a year. Is the home valued near a million dollars? As other's have said i would recommend looking into the Valparaiso area. Its far enough away to be peaceful quiet and affordable yet its only about an hour from Chicago.

The results of that is that schools have faced severe cutbacks, and communities have had to put forward polarizing referendums on the ballot. Another result is Indiana's crumbling bridges and road infrastructure - currently there's a 50-mile detour around a bridge on I-65 because the bridge support started to give way. You could argue this is governmental mismanagement, but no doubt the property tax cap has a large part in it.

[knighthood82]

Originally Posted by summer22

The results of that is that schools have faced severe cutbacks, and communities have had to put forward polarizing referendums on the ballot. Another result is Indiana's crumbling bridges and road infrastructure - currently there's a 50-mile detour around a bridge on I-65 because the bridge support started to give way. You could argue this is governmental mismanagement, but no doubt the property tax cap has a large part in it.

Maybe you should get your facts straight on what happened on I-65. They were actually making planed improvements to strengthen the road in that area when a contractor struck an aquifer which started gushing water and made the soil so saturated that a main support pillar of a bridge started sinking. It was not a case of maintenance neglect.