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Re: Tax-Reform and the Housing Market.
Old 10-14-2005, 09:47 AM   #21
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Re: Tax-Reform and the Housing Market.

Quote:
Originally Posted by ProfHaroldHill
You are right about Wake taxation. My jumps have been caused by rapidly increasing property values (in a very "hot" local microcosm, for some reason), not bad tax policy. I guess I should be thankful that the value of my property has increased so much.

HH
Five points area?
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Re: Tax-Reform and the Housing Market.
Old 10-14-2005, 09:50 AM   #22
 
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Re: Tax-Reform and the Housing Market.

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Originally Posted by justin
7F73DB910ADF/0/TaxRateChart.pdf

Compare this to Chapel Hill and Orange County (NC), where my tax bill there increased by 10-15% each year (until I got out of that hell hole).* They just don't care.* The government services provided were meager too compared to Raleigh's.*
*Chapel Hill is often listed as a prime place in those "Best places to retire" books. *I have never understood this -- CH would be my last chioce for RTP-area living. *OTOH, Raleigh has been great for me (have lived here more than 35 years) . . .

HH
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Re: Tax-Reform and the Housing Market.
Old 10-14-2005, 09:51 AM   #23
 
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Re: Tax-Reform and the Housing Market.

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Originally Posted by justin
Five points area?*
More or less . . .
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Re: Tax-Reform and the Housing Market.
Old 10-14-2005, 10:53 AM   #24
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Re: Tax-Reform and the Housing Market.

Quote:
Originally Posted by ProfHaroldHill
Chapel Hill is often listed as a prime place in those "Best places to retire" books. I have never understood this -- CH would be my last chioce for RTP-area living. OTOH, Raleigh has been great for me (have lived here more than 35 years) . . .

HH
I share your sentiments re: Chapel Hill. If I could go back in time, I would have bought property just over the city line in Durham instead of Chapel Hill while I was living in that area. Much more house for the buck and lower taxes and there are actually decent restaurants and retail outlets everywhere.
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Re: Tax-Reform and the Housing Market.
Old 10-14-2005, 06:02 PM   #25
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Re: Tax-Reform and the Housing Market.

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Originally Posted by ProfHaroldHill
I guess I should be thankful that the value of my property has increased so much.
Only if you plan to sell it. Some people (not me) peobably want to stay where they are til death do they part.

I was wondering, if property values were to go down let's say 30%, would the local government have to re-asess all properties down by 30%.
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Re: Tax-Reform and the Housing Market.
Old 10-15-2005, 11:18 AM   #26
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Re: Tax-Reform and the Housing Market.

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Originally Posted by ProfHaroldHill
* I would like to see some data that show the median income of the group that would gain most if the AMT is abolished vs the median income of the group that would lose most if the deductions for mortgage interest and local tax go away.*

HH
Interestingly enough the AMT doesn't hit the super wealthy as much as the moderately wealthy.* If you're earning a regular income of $500K+, you probably wont get hit with the AMT because your "normal" tax under existing brackets is higher than the AMT 28% rate.* If you are "uber" wealthy and living off of investment income, rather than earned income, you can avoid the AMT by keeping your money in muni bonds and other tax dodges that escape the AMT.

Mostly the AMT hits the "moderately" wealthy folks, like doctors and lawyers, who have high earned income and large deductions (mortgage interest**, state taxes, etc.) that reduce their effective tax rate below the AMT rate.*

The mortgage deduction revision proposal I've seen was to reduce / eliminate the deduction for loans larger than $350K - so this would hit the wealthy folk more than everyone else.


** Edit: The mortgage interest deduction is one of the few that is still allowed under the AMT calculation
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Re: Tax-Reform and the Housing Market.
Old 10-15-2005, 11:22 AM   #27
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Re: Tax-Reform and the Housing Market.

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Originally Posted by Nords
Mine sank like a rock between 1990-93 and they went down even faster when I challenged the assessment.* They continued to drop until 1998.

Of course the RATE stayed at 3.65 mils, but the $$ AMOUNT was what dropped.
Hey Nords, didn't you post in another thread that you were paying something like $0.08 / kwh for power somewhere in TX? With property taxes going down and lower cost power than everyone else . . . are there any houses for sale in your neighborhood?
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Re: Tax-Reform and the Housing Market.
Old 10-15-2005, 11:37 AM   #28
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Re: Tax-Reform and the Housing Market.

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Originally Posted by . . . Yrs to Go
Hey Nords, didn't you post in another thread that you were paying something like $0.08 / kwh for power somewhere in TX? With property taxes going down and lower cost power than everyone else . . . are there any houses for sale in your neighborhood?
Since Nords lives in Hawaii, how the heck is he getting $0.08/kwh electricity from TX? Oh yeah, he's got his own solar system. With that kind of clout, he can do just about anything...

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Re: Tax-Reform and the Housing Market.
Old 10-15-2005, 12:28 PM   #29
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Re: Tax-Reform and the Housing Market.

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Originally Posted by REWahoo!
Since Nords lives in Hawaii, how the heck is he getting $0.08/kwh electricity from TX?* Oh yeah, he's got his own solar system.* With that kind of clout, he can do just about anything...
Whoops . . . the hazards of being too lazy to research old threads before you comment on them is revealed.
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Re: Tax-Reform and the Housing Market.
Old 10-15-2005, 01:26 PM   #30
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Re: Tax-Reform and the Housing Market.

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Originally Posted by . . . Yrs to Go
Hey Nords, didn't you post in another thread that you were paying something like $0.08 / kwh for power somewhere in TX?* With property taxes going down and lower cost power than everyone else . . . are there any houses for sale in your neighborhood?
I wish. *The power prices on Oahu are about 16 cents/KWHr and rising with every monthly fuel surcharge. *Our PV array was a good idea at $50/barrel oil, at $65 it's looking even better. *

In 2006 (when the fed tax deduction kicks in above the state's deduction) we're building out our 1 KW array to its inverter's 3 KW capacity even if we have to pay retail. *That should knock our electric bill down to its $13/month minimum service charge (which includes a $3/month rebate for letting HECO turn off our water heater with their load-shedding pager system). *But I think I'm also suffering from "solar envy".

I just pulled some property-tax data out of Quicken. *Our home's appraised resale value bottomed in 1998 but assessed property taxes stayed flat until early 2002. *Since then (just three & a half years) the taxes have gone up 97.7%. *(So has the house's appraised value.) *I bet since 1989 (our arrival here) taxes have risen at an average rate of at least the CPI, but I have to go digging in tax files for that data.

BTW Oahu's median home prices are around $620K and median condo prices are about $280K. *I think Texas is probably cheaper, even if the property taxes are more expensive.
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Re: Tax-Reform and the Housing Market.
Old 10-15-2005, 07:33 PM   #31
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Re: Tax-Reform and the Housing Market.

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Originally Posted by . . . Yrs to Go
Whoops . . . the hazards of being too lazy to research old threads before you comment on them is revealed.*
Yeah, I get caught in that one all the time

JG
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Re: Tax-Reform and the Housing Market.
Old 10-15-2005, 07:35 PM   #32
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Re: Tax-Reform and the Housing Market.

Ballpark, my taxes are $2.70 per $1000, with some homestead expemtions.
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Re: Tax-Reform and the Housing Market.
Old 10-16-2005, 07:59 AM   #33
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Re: Tax-Reform and the Housing Market.

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Originally Posted by SteveR
Another big problem those on a fixed income are experiencing now (other than rapidly rising energy bills) is realestate tax increases. Many areas are seeing RE taxes go up and up due to the RE bubble.
I think this subject (Rising Real Estate Taxes) goes a lot further than us fixed income folk. All these Real Estate buyers snapping up homes at such high prices must experience some pain.

So you sell your home for $900k, you paid $300k for it 10 years ago. You were paying say $3500 in Tax yeaterday, today in your new upgraded home that you purchased, you are paying say $10,000. Almost tripple was you were paying in your old home. Not to mention the $100k Capital Gains tax.

I am not sure people consider these ongoing repetative costs in detail, when buying a home. They focus simply on the Mortgage monthly payment.

I think these costs can kill you over time.

Frankly I agree with reducing the mortgage interest deduction threshold. No-one should have a mortgage over $300 - $400k, I certainly could not sleep at night if I did.

SWR

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Re: Tax-Reform and the Housing Market.
Old 10-16-2005, 08:37 AM   #34
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Re: Tax-Reform and the Housing Market.

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Originally Posted by ShokWaveRider

No-one should have a mortgage over $300 - $400k, I certainly could not sleep at night if I did.

SWR

You couldn't "sleep at night" so no one else should have one either?
That's like saying "I'm afraid of the water, so let's ban boats."
That's the kind of thinking that drives a lot of leftist PC thinking.
"No one should.............(fill in the blank) so let's not allow it".

Stinkin' thinkin'!!!!!!!!!

JG
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Re: Tax-Reform and the Housing Market.
Old 10-16-2005, 08:46 AM   #35
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Re: Tax-Reform and the Housing Market.

Quote:
Originally Posted by ShokWaveRider
I am not sure people consider these ongoing repetative costs in detail, when buying a home. They focus simply on the Mortgage monthly payment.

Frankly I agree with reducing the mortgage interest deduction threshold. No-one should have a mortgage over $300 - $400k, I certainly could not sleep at night if I did.
High property taxes can be a killer - especially for someone looking to ER. It's tough to ER if you have $10K+ in property taxes you have to cover year-in and year-out. That is one of the reasons I'm not moving from my current place.

As far as $300-$400K being a lot for a property, it really depends on where you live. In my neck of the woods (New York City) $400K gets you a 1,000 square foot condo - not necessarily newly renovated, no parking, and no real outdoor space. $1 MM doesn't buy you a lot of real estate around here - even if you can tolerate a 2 hour commute to work.
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Re: Tax-Reform and the Housing Market.
Old 10-16-2005, 08:52 AM   #36
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Re: Tax-Reform and the Housing Market.

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Originally Posted by . . . Yrs to Go
High property taxes can be a killer - especially for someone looking to ER.* It's tough to ER if you have $10K+ in property taxes you have to cover year-in and year-out.* That is one of the reasons I'm not moving from my current place.

As far as $300-$400K being a lot for a property, it really depends on where you live.* In my neck of the woods (New York City) $400K gets you a 1,000 square foot condo - not necessarily newly renovated, no parking, and no real outdoor space.* $1 MM doesn't buy you a lot of real estate around here - even if you can tolerate a 2 hour commute to work.
That house I posted about is still for sale here. !000 SF on a wooded acre with
a water view. RE taxes are $1650. Asking $85,000. My guess is $70,000
would buy it.

JG
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Re: Tax-Reform and the Housing Market.
Old 10-16-2005, 08:56 AM   #37
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Re: Tax-Reform and the Housing Market.

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Originally Posted by MRGALT2U
That house I posted about is still for sale here.* !000 SF on a wooded acre with
a water view.* RE taxes are $1650.* Asking $85,000.* *My guess is $70,000
would buy it.

JG
In a few years you might just see me as a neighbor (if I could possibly convince DW). I still have to put in a few more at the salt mine, though, before I can make the move.
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Re: Tax-Reform and the Housing Market.
Old 10-16-2005, 09:14 AM   #38
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Re: Tax-Reform and the Housing Market.

N.Y.C., coastal California, same deal.

Overheard: Broker to Client. I have good news, and bad news on that property you've been looking at.

First, the good news. The inspection has come up with an estimated $400,000.00 in structural damage, and they have dropped their price from
$l,750,000.00 to $l,250,000.00.00 I figure (along with help from an engineer), that it could be corrected for much less than that figure.

The bad news is that the lender is going to require you to come up with $5,000.00 for a down payment.
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Re: Tax-Reform and the Housing Market.
Old 10-16-2005, 04:03 PM   #39
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Re: Tax-Reform and the Housing Market.

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Originally Posted by . . . Yrs to Go
As far as $300-$400K being a lot for a property, it really depends on where you live. In my neck of the woods (New York City) $400K gets you a 1,000 square foot condo - not necessarily newly renovated, no parking, and no real outdoor space. $1 MM doesn't buy you a lot of real estate around here - even if you can tolerate a 2 hour commute to work.
My point exactly. I do not believe people should be buying million dollar homes unless they have at least $700k in CASH.

Certainly would keep home prices reasonable, and maybe just maybe people REALLY could afford what they buy.

SWR
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Re: Tax-Reform and the Housing Market.
Old 10-16-2005, 04:09 PM   #40
 
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Re: Tax-Reform and the Housing Market.

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Originally Posted by . . . Yrs to Go

As far as $300-$400K being a lot for a property, it really depends on where you live.* In my neck of the woods (New York City) $400K gets you a 1,000 square foot condo - not necessarily newly renovated, no parking, and no real outdoor space.* $1 MM doesn't buy you a lot of real estate around here - even if you can tolerate a 2 hour commute to work.
Wow. This is pretty tough. How do young people ever get a house? A 2 hour commute would wear me out.
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