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Re: Retiring in Texas?
Old 03-29-2007, 12:21 PM   #21
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Re: Retiring in Texas?

I stand by my poor property appreciation in Texas stand. Here is a real world example: 1980 sold house in Chicago for $85K that I purchased for $70 a few years earlier. That house in innercity is worth $450k. In 1982 purchased house in Bellaire--surely, one of the toniest areas of Houston and a Drs. and lawyers ghetto--for $70K. That house was sold in 2003 for $165K. You do the math! It makes me sick, but too late to do anything about it now.
Again, if you look at any real estate boards the property appreciation in Texas is one of the worst in the nation...unfortunately.

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Re: Retiring in Texas?
Old 03-29-2007, 12:27 PM   #22
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Re: Retiring in Texas?

Didn't Texas enact a new law that caps the property tax increase at 3%? I remember hearing something from friends in Texas, because they couldn't wait to tell me about it knowing that I was interested in that little tidbit of information. If that's the case, it isn't too bad for those under 65.
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Re: Retiring in Texas?
Old 03-29-2007, 12:55 PM   #23
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Re: Retiring in Texas?

Quote:
Originally Posted by Orchidflower
Didn't Texas enact a new law that caps the property tax increase at 3%?
Nope, no cap at 3%. Cap is 10% per year with no more than 30% in any given 3 year period. There is a group in Houston pushing for a lower cap, but it is predicted to go nowhere in the legislature this year, and the Texas legislature only meets every two years.
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Re: Retiring in Texas?
Old 03-29-2007, 01:06 PM   #24
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Re: Retiring in Texas?

For the 65 rule. If married do both spouses need be 65 or just one? If both names are on the title.
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Re: Retiring in Texas?
Old 03-29-2007, 06:29 PM   #25
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Re: Retiring in Texas?

Only one need be over 65. Here is the jest of the law.
Age 65 or older homeowners

If you are age 65 or older, your residence homestead will qualify for more exemptions.

You will qualify for a $10,000 homestead exemption for the school taxes on your home's value, in addition to the $15,000 exemption for all homeowners.

If you qualify for both the $10,000 exemption for over-65 homeowners and the $10,000 exemption for disabled homeowners (see the following section), you must choose one or the other for school taxes. You cannot receive both.

In addition to the $10,000 exemption for school taxes, any taxing unit (including a school district) can offer an additional exemption of at least $3,000 for taxpayers age 65 or older.

Once you receive an over-65 homestead exemption, you get a tax ceiling for that home on your total school taxes. The school taxes on your home cannot increase as long as you own and live in that home. The tax ceiling is the amount you pay in the year that you qualify for the over-65 homeowner exemption. The school taxes on your home may go below the ceiling, but the school taxes will not be more than the amount of your ceiling.

However, your tax ceiling can go up if you improve your home (other than normal repairs or maintenance). For example, if you add a garage or a game room to your home, your tax ceiling can go up. Also, your tax ceiling will change if you move to a new home.

When a homeowner who has been receiving the tax ceiling on school taxes dies, the ceiling transfers to the surviving spouse if the survivor is 55 or older and has ownership in the home. The survivor should apply to the appraisal district for the tax ceiling to transfer. The ceiling remains in effect for as long as the spouse lives in the home.

A tax ceiling does not expire when the owner conveys the interest in the home to a trust, if the owner-trustor occupies the home.

When you no longer live in the home as your permanent residence, you will no longer qualify for the over-65 exemption for the remaining portion of that year. Taxes will be prorated based on the number of days that elapsed after you no longer qualified that home for the exemption to the end of the year.

If you purchase another home, you may qualify for the over-65 exemption when you live in the new home as your principal residence. You may transfer the percentage of school tax paid based on your former home's over-65 school tax ceiling to the new home. For example, if you currently have a tax ceiling of $100, but would pay $400 without the tax ceiling, the percentage of tax paid is 25 percent. If the taxes on your new home are $1,000, the new school tax ceiling would be $250, or 25 percent of $1,000. You may request a certificate from the appraisal district for the former home to take to the appraisal district for your new home.

When homeowners who have been receiving the age-65-or-older exemptions die, the exemptions transfer to their surviving spouses. The surviving spouses must be 55 or older at their spouse's death and must live and have ownership in the home. The survivors should apply to the appraisal district to transfer the exemptions. If your spouse dies in the year of his or her 65th birthday but has not applied for the over-65 exemption, you may apply for the over-65 exemption as the surviving spouse. The exemptions remain in effect for as long as the survivors own and live in the homes.

Homeowners age 65 or older who apply for the exemptions may also pay their home taxes in installments. See the section Paying Your Taxes for details.

If you are a homeowner age 65 or older, you may defer or postpone paying any delinquent property taxes on your home for as long as you own and live in it. To postpone your tax payments, file a tax deferral affidavit with your appraisal district. You may suspend any lawsuit by filing an affidavit with the court. The deferral is for all delinquent property taxes of the taxing units that tax your home.

A tax deferral only postpones paying your taxes. It doesn't cancel them. Interest is added at the rate of 8 percent a year. Once you no longer own your home or live in it, past taxes and interest become due. Any penalty and interest that was due on the tax bill for the home before the tax deferral will remain on the property and also become due when the tax deferral ends.

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Re: Retiring in Texas?
Old 03-29-2007, 06:44 PM   #26
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Re: Retiring in Texas?

Thanks! good deal then for retired folks
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Re: Retiring in Texas?
Old 03-29-2007, 07:21 PM   #27
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Re: Retiring in Texas?

Quote:
Originally Posted by Jake46
I just happen to miss four seasons and have lived in Colorado before and miss it.
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Hey, just move to Dallas and you can have 4 seasons all in the same day!

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Re: Retiring in Texas?
Old 03-29-2007, 07:37 PM   #28
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Re: Retiring in Texas?

I lived in Austin (Travis County) and in Bastrop (Bastrop County) for a few years prior to relocating to Louisiana. Don't miss Travis County, but would move back to Bastrop in a skinny minute, even though the taxes are way higher than Louisiana. In LA, there's a $75000 property tax exemption for county (parish) property taxes. I live just inside the city limits, so I pay the greatly exempted parish tax plus a city property tax. I expect to sell my house shortly for approx. $190K-$200K (not sure the tax value, I'll have to look) and my total property taxes for last year were around $1100. That said, I still prefer Texas, ebola & all. There's some odd folks in Louisiana! Hard to beat the fishin' though.
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Re: Retiring in Texas?
Old 03-31-2007, 02:08 AM   #29
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Re: Retiring in Texas?

As one who plans to retire to Texas in mid-2008, I appreciate this set of thoughts, particularly Rustic 23's comments.

I have lived in a half dozen states (presently residing in San Diego, California) and enjoyed them all. Having been reared in Texas (or "raised" as one would say in the Lone Star State), however, the call of "home" is strong -- plus the fact that housing is so inexpensive compared to East and West Coasts. I'll take the higher property taxes over higher housing/utility costs any day.

My wife and I are particularly interested in living in one of the "active adult" communities in Texas, probably in the San Antonio/ Austin corridor. If anyone has any special insight into those communities, I'd appreciate hearing it.


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Re: Retiring in Texas?
Old 03-31-2007, 05:23 AM   #30
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Re: Retiring in Texas?

Quote:
Originally Posted by playaman

My wife and I are particularly interested in living in one of the "active adult" communities in Texas, probably in the San Antonio/ Austin corridor. If anyone has any special insight into those communities, I'd appreciate hearing it.
Some observations on the Dell Webb community in San Antonio:

It's less than a year old and initial demand was so great that you had to apply and be pre-selected in order to get a tour of the location. Not sure if that's still the case, but demand for new housing in the area remains very high.

It's located in the middle of several new subdivisions on the western outskirts of the city. Projections from last year are for 15,000 new homes to be built in that general area within the next decade. The roads are at least a decade behind the growth curve, so traffic in the area is going from bad to worse. If you decide to check it out, be sure to do so during rush hour.

On a positive note, all the construction in the area has eradicated the rattlesnake population and sent the scorpions scurrying for cover. (Unfortunately the scorpions will be back as soon as you move in.) Lots of shopping and two hospitals are also under construction, so you won't have to go far if you're stricken with Ebola. Just hope it doesn't hit during rush hour or you're a goner for sure.

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Re: Retiring in Texas?
Old 03-31-2007, 05:45 AM   #31
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Re: Retiring in Texas?

Quote:
Originally Posted by Rustic23
His $120,000 house is now closer to $350,000 and rising, and his taxes are on following suit.
You did not comment on the tax rate or the trend of the increases. In otherwords current tax rate is 3% and increasing .2% on average every x years.

If the taxes are unbearable... consider selling the house and relocating to an area with lower taxes or house of lower value.

Heck... I wish i had a your friend's problem. A 300% increase in value over a few years!!!
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Re: Retiring in Texas?
Old 03-31-2007, 06:29 AM   #32
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Re: Retiring in Texas?

Quote:
Originally Posted by chinaco

If the taxes are unbearable... consider selling the house and relocating to an area with lower taxes or house of lower value.

Heck... I wish i had a your friend's problem. A 300% increase in value over a few years!!!
Sure, his friend can always sell and cash out on the appreciation in his house. But since this guy bought a retirement home in this location, could be his friend is exactly where he wants to be and may not want to relocate. It isn't always about the money.

I think Rustic's original point is that even in traditionally low real estate appreciation markets like Texas, property taxes (along with the rattlesnakes and scorpions) can bite you and screw up your retirement plans.

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Re: Retiring in Texas?
Old 03-31-2007, 10:12 AM   #33
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Re: Retiring in Texas?

Quote:
Originally Posted by REWahoo!
Sure, his friend can always sell and cash out on the appreciation in his house. But since this guy bought a retirement home in this location, could be his friend is exactly where he wants to be and may not want to relocate. It isn't always about the money.

I think Rustic's original point is that even in traditionally low real estate appreciation markets like Texas, property taxes (along with the rattlesnakes and scorpions) can bite you and screw up your retirement plans.

I understood. It is difficult to communicate fully with a few written words.

My comment was not intended to be a narrow statement about money being all that is important.

Rather, the unexpected change had a positive effect. Look on the positive side and consider the options. It may present a good opportunity.

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Re: Retiring in Texas?
Old 03-31-2007, 11:09 AM   #34
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Re: Retiring in Texas?

Neighbor bought a 1 acre lot on a nice lake, put in $17,000 worth of dock, and $15,000 worth of boat. Plays golf, and Waterwood has a great golf course, which cost him $230 a month for unlimited golf. Needless to say he does not want to move. However, he has 8 years till he reaches 65. At that time, Texas tax law will protect him, if he can afford the increases in his tax bill.

The tax rate in Waterwood, and for the most part throughout Texas has remained constant. If you look at the history of tax rates and values you will see the reason. In the 80’s the bottom dropped out of the real estate market. Many jurisdictions saw values drop below the level of which they could provided services at the tax rate of the time. They did what every good government does. They raised rates. In the late 90’s and throughout the 2000’s properties values have risen. The politicians, for the most part, kept the tax rates the same, and told property owners they ‘have not raised taxes’ they kept the rates the same, and spent the windfall of cash. This is beginning to catch up with them, but many areas have seen a 10% increased in property taxes for 3 to 5 years and for some it will continue for another 2 to 3 years, at which time things should level off at 3 to 5%.

My caution about retiring in Texas, Ebola, snakes, scorpions, tornados, and hurricanes aside, (just saw report about severe flooding, left that out ) … is, if you have a long time before you will reach 65, be careful about the cheap property values. Check the history of value increases. Texas politicians are no different than any other, they are addicted to spending, and property taxes fund schools and local governments here.

I don’t know about other folks that post on this board, but we moved 23 times in 35 years of work! When we built this home, moving in yes, moving out NO, no matter what it is worth.
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Re: Retiring in Texas?
Old 03-31-2007, 01:16 PM   #35
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Re: Retiring in Texas?

Quote:
Originally Posted by REWahoo!


I think Rustic's original point is that even in traditionally low real estate appreciation markets like Texas, property taxes (along with the rattlesnakes and scorpions) can bite you and screw up your retirement plans.



ReWahoo: You should be ashamed of yourself for mis-leading the young members of this board, re: Taxes on property. (Texas-Style).

Your home in Calif., if you were inland (low rent district) would run you about $8000.00 a year. If you were on the coast, probably in the 12 to $13,000.00 area. (Probably pretty close to the Eastern Seaboard, also).

Also, in Calif., state income taxes go up to 9.5% Sales taxes 7.5%.

You don't have to worry about my moving, though.

Not because of humidity, ants, etc. etc., but It would be just my luck to move next door to John Galt.

Nice try though!

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Re: Retiring in Texas?
Old 03-31-2007, 01:23 PM   #36
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Re: Retiring in Texas?

Jarhead,

If you move down here, I'll get you a house on the 9th hole. Close enough? Then all you'll have to worry about is golf balls coming through your living room window. JG doesn't golf.

I thought you Californicators had Prop 13 to protect you? Or is that just dating myself?

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Re: Retiring in Texas?
Old 03-31-2007, 02:37 PM   #37
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Re: Retiring in Texas?

If I were recommending that someone consider a move to Texas, I would direct them to either the San Marcos area or the Kerrville area. Both are far enough away from large cities, but close enough to them for medical or shopping or entertainment.
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Re: Retiring in Texas?
Old 03-31-2007, 02:43 PM   #38
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Re: Retiring in Texas?

Quote:
Originally Posted by Eagle43
Jarhead,

If you move down here, I'll get you a house on the 9th hole. Close enough? Then all you'll have to worry about is golf balls coming through your living room window. JG doesn't golf.

I thought you Californicators had Prop 13 to protect you? Or is that just dating myself?
Eagle: No doubt in my mind that living in Texas would be a helluva lot less expensive, but, when you consider a "divorce", maybe not.

My Chidren live in the "Peoples Republic". (Bay Area). About 250 miles from us. No go on moving, unless it was a solo.

Re: Prop 13, I was talking coming in the front door. I've seen ReWahoo's property, and conservatively it would cost $750,000.00 Inland, and probably in the area of $1,200,000.00 on the coast. Prop 13 gives you a limitation on increases, but initially, the figures $8000.00 and $13,000.00 would be very close.

I built my home 20 years ago on the rim of a canyon, and we're a mile from our nearest neighbor, so we're alright there. If I had to live in a "neighborhood" in Calif., I would be long gone.

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MODERATOR EDIT: Corrected quote
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Re: Retiring in Texas?
Old 03-31-2007, 04:17 PM   #39
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Re: Retiring in Texas?

Now here's a good reason to retire in Texas -- alligator hunts. The spring gator hunt is about to start. This shorter season is also more restrictive than the fall hunt. A hunter can take only one gator and it has to be on private land.

If you come, let me know. I know of a place inside the Houston city limits that has many 12 to 14+ foot gators. Don't even both with the 10 footers. They're everywhere; and if you can only get one, go for a good sized one.

You won't get this kind of excitement by retiring in Oregon.
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Re: Retiring in Texas?
Old 03-31-2007, 04:38 PM   #40
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Re: Retiring in Texas?

Quote:
Originally Posted by 2B
Now here's a good reason to retire in Texas -- alligator hunts. The spring gator hunt is about to start. This shorter season is also more restrictive than the fall hunt. A hunter can take only one gator and it has to be on private land.

If you come, let me know. I know of a place inside the Houston city limits that has many 12 to 14+ foot gators. Don't even both with the 10 footers. They're everywhere; and if you can only get one, go for a good sized one.

You won't get this kind of excitement by retiring in Oregon.
Too bad the deer hunting isnt as good as this alligator hunting you are speaking of. Oh well Ks isnt that far of a drive up north
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