Best neighborhoods to consider? (Pittsburgh, Lebanon: how much, buying a home, to buy)

[Goodjules]

I don't know how home values in Las Vegas compare to Pittsburgh, but I do know how they compare to Bay Area home prices. In my case I pay roughly $5500 in property taxes which is about 3.5% of the assessed value of my home. Property taxes on a similarly valued home in the Bay Area would be approximately $2500. However, the house I own in Crafton would cost about $2-3 million in the Bay Area and the property taxes would be based on that value. If the OP has a home in LV worth siginificantly more than what they're buying here, the savings on mortgage and insurance could offset the higher property tax rates. Obviously, you need to be aware of all the costs involved in buying a home.

[PGH423]

Originally Posted by gg

As an investor, I would compare property without adjusting price to a point, because I consider my home an investment. Property taxes are a fixed expense that eat into your investment. You can't get that money back. If a home in Pittsburgh costs $100,000 and a home in Vegas costs $150,000, that is your investment, but the taxes in Pittsburgh are so much higher as a percentage that it makes it much harder to make your money back and a profit on your sale. That is why I consider property taxes as a percentage of value. Pittsburgh's home values are lower because taxes are so wildly high. The average home in my neighborhood would have an average property tax at $17,000+ a year!!!!! That being said, home values just don't go up all that much around here unless of course they were about worthless to begin with like in Lawrenceville. At some point Pittsburgh will not be all that affordable because the tax rates are so wildly high. A $200,000 in Pittsburgh is at $4526 a year. You can't get into the better areas for $200,000 anymore. It adds up. The median home price in Las Vegas is $269,400. Taxes on that are $3,295 a year on that home in Vegas.

For me, I would invest a lot more into a home in an area with lower property taxes because those property taxes eat you alive around here. No interest in ever really putting big money in a home or a nice addition as it would just make my property taxes skyrocket.

Most houses don’t appreciate fast. About 4% is the US long-term average. The lower property cost here frees you up to invest in ways that will yield much better return than most real estate. That would be more relevant to an investor than anything related to property taxes.

[PGH423]

Originally Posted by Goodjules

I don't know how home values in Las Vegas compare to Pittsburgh, but I do know how they compare to Bay Area home prices. In my case I pay roughly $5500 in property taxes which is about 3.5% of the assessed value of my home. Property taxes on a similarly valued home in the Bay Area would be approximately $2500. However, the house I own in Crafton would cost about $2-3 million in the Bay Area and the property taxes would be based on that value. If the OP has a home in LV worth siginificantly more than what they're buying here, the savings on mortgage and insurance could offset the higher property tax rates. Obviously, you need to be aware of all the costs involved in buying a home.

Yes, our taxes are low because of low assessed values even though our tax rate is high. You definitely get the distinction.

[Paul2421]

Originally Posted by Goodjules

I don't know how home values in Las Vegas compare to Pittsburgh, but I do know how they compare to Bay Area home prices. In my case I pay roughly $5500 in property taxes which is about 3.5% of the assessed value of my home. Property taxes on a similarly valued home in the Bay Area would be approximately $2500. However, the house I own in Crafton would cost about $2-3 million in the Bay Area and the property taxes would be based on that value. If the OP has a home in LV worth siginificantly more than what they're buying here, the savings on mortgage and insurance could offset the higher property tax rates. Obviously, you need to be aware of all the costs involved in buying a home.

doesnt california have laws that keep property tax artificially low though?

[gg]

Originally Posted by PGH423

Yes, our taxes are low because of low assessed values even though our tax rate is high. You definitely get the distinction.

Problem is if you are going to buy a home in our region and are paying current market prices you most likely will be reassessed at near the purchase price! Not sure if you are keeping up with the market in our region, but prices are MUCH higher than just a few years ago. That being said, stop telling people taxes are low! They are VERY high if you are looking to buy a home here. VERY high!

[PGH423]

Originally Posted by gg

Problem is if you are going to buy a home in our region and are paying current market prices you most likely will be reassessed at near the purchase price! Not sure if you are keeping up with the market in our region, but prices are MUCH higher than just a few years ago. That being said, stop telling people taxes are low! They are VERY high if you are looking to buy a home here. VERY high!

You don't understand the differences between total taxes owed and tax rate if you think that. Let's take an extreme example. Imagine you live in a country where income tax is 100% but you're unemployed and don't earn anything anyway. Your taxes owed are $0 then. (100% of 0.) Your taxes can't get any lower.

Regarding your other comment, reassessing after purchase is not unique to Allegheny County.

[gg]

Originally Posted by PGH423

You don't understand the differences between total taxes owed and tax rate if you think that. Let's take an extreme example. Imagine you live in a country where income tax is 100% but you're unemployed and don't earn anything anyway. Your taxes owed are $0 then. (100% of 0.) Your taxes can't get any lower.

Regarding your other comment, reassessing after purchase is not unique to Allegheny County.

Um, you are grasping at straws and have lost this one. Best to move on. Our region is taxed to death and that is why the properties sell so cheap around here, but as demands rise and they are, those new buyers are getting hit VERY hard. I don't think you are up on current home prices around here. They are VERY high and BOOM will get that reassessment that is going to be insane. You better do a search in our region to get an up to date view. I think you are still living in 2013. Best to have a look around and start calculating taxes that these new buyers are facing.

[PGH423]

Originally Posted by gg

Um, you are grasping at straws and have lost this one. Best to move on. Our region is taxed to death and that is why the properties sell so cheap around here, but as demands rise and they are, those new buyers are getting hit VERY hard. I don't think you are up on current home prices around here. They are VERY high and BOOM will get that reassessment that is going to be insane. You better do a search in our region to get an up to date view. I think you are still living in 2013. Best to have a look around and start calculating taxes that these new buyers are facing.

You are way off. Look at the average house price for Pittsburgh and the US on Zillow or any other website. We’re almost $100K below national average right now in 2018.

[PGH423]

For example, average Pittsburgh home value is $147K and average asking price is $200K according to Zillow. The numbers for the US are $220K and $275K. We've actually closed the gap a little bit but our homes still cost only about half to 3/4ths the US average. That savings (and the fact that it can be invested intelligently) is much more important than paying an extra 1% property tax. If you pay $100K less for the same house, you should be able to return at least 7% per year ($7K a year) on average.

[robrobrob]

I think the city's property taxes aren't that outrageous. A 200,000 house pays $4526. When you get to the burbs you start to get up there. gg in Fox Chapel pays 5360 for that same 200,000 house. This is ignoring the Homestead Exemption. The City of Cleveland pays 3840.