Property taxes increase 85% (Kailua: renters, houses, property tax)

[eastside14]

The city council just passed an increase on investment properties for homes worth >1 million. Rates will increase from $3.50 p/thousand to $6.00. Affects about 7655 properties on Oahu so far and that number will rise with property value appreciation this year. Most likely your average single family home in the Hawaii Kai, Kailua and North Shore rental market will see rents impacted.

[whtviper1]

If you can afford a rental worth more than $1 Million, you can probably handle the rent increase.

[eastside14]

The increase will be passed through to the renters. Not necessarily all at once but eventually the investment property has to cash flow. Just the dirt underneath your home with be worth a million (in the not to distant future) especially in an area like Kailua.

[whtviper1]

Originally Posted by eastside14

Just the dirt underneath your home with be worth a million (in the not to distant future) especially in an area like Kailua.

Anyone interested.....

In some dirt. I've got some.

Anyway, a $1,000,000 house rents for about $4,500/month in Kailua, give or take. Even if you passed on the entire property tax increase to the renter, that is only a little more than $200/month.

[Dthraco]

Originally Posted by whtviper1

If you can afford a rental worth more than $1 Million, you can probably handle the rent increase.

...and you are probably not reading this forum anyway.

[pj737]

I wonder how the oh-so brilliant Kobayashi is going to handle all those multifamily properties with a single TMK where two, three, or more properties/rentals exist on a single RPT bill. It wouldn't surprise me if they don't have exceptions for multi-unit properties. This will raise the rent significantly on many moderate priced rentals.

Ironically, this tax increase was to help fund the bus... where they robbed funds from to pay for the mall train. So you can blame rail for this increase.

[eastside14]

That million dollar home that rents for $4500 p/mo... GET on the rental for just the train at .5% is $270 plus $2400 for the prop tax increase. That's a $2670 tax burden (housing alone) per year for one household exclusively for the train.

[whtviper1]

Originally Posted by eastside14

That million dollar home that rents for $4500 p/mo... GET on the rental for just the train at .5% is $270 plus $2400 for the prop tax increase. That's a $2670 tax burden (housing alone) per year for one household exclusively for the train.

Originally Posted by whtviper1

Anyway, a $1,000,000 house rents for about $4,500/month in Kailua, give or take. Even if you passed on the entire property tax increase to the renter, that is only a little more than $200/month.

Hmmmmm.......

[mdand3boys]

Originally Posted by eastside14

That million dollar home that rents for $4500 p/mo... GET on the rental for just the train at .5% is $270 plus $2400 for the prop tax increase. That's a $2670 tax burden (housing alone) per year for one household exclusively for the train.

I would bet that those renters of a million dollar home won't be riding the train too much, either...

[winkosmosis]

Is that increase on the total cost? Or on value over $1 mil? If it's on the total value, that's a dumb way to tax... Rate almost doubles between a $999,999 house and a $1,000,001 house

BTW aren't most houses over $1 mil on Oahu?