Rustic23
Thinks s/he gets paid by the post
I was talking to my next door neighbor about his retirement. He retired in 2000 at age 50. Aside from the market risk he incurred, the thing he did not plan on was the increase in property tax. He picked a spot on a lake that had been developed in the late 70’s and hit hard by the down real estate market of the 80’s and 90’s. In 2000, it was possible to get an acre on the lake, with 200 front feet on the lake, for less than $15,000, and a total home cost of less than $120,000 for a 2,800 sq.ft. home.
What he did not count on, was the Texas law that allows jurisdictions to increase property taxes as much as 10% per year as the market value of his home increased. For the first few years of his retirement everything was OK. Then folks around these parts began to find the subdivision, which my builder called ‘the best kept secret in Texas’. His $120,000 house is now closer to $350,000 and rising, and his taxes are on following suit.
This is not a problem for the near 65 year old retiree as both the school district and county taxes are capped when you reach 65 for this area. The only tax left is a utility tax, and it is going down as property values go up. However, the further you are off the 65 figure, the greater the effect of Texas property taxes affect you.
Overall Texas has one of the lowest total tax rates, however, I would caution the early retiree to be cautious of the potential for a sizable increase in property tax before you reach the age of 65.
What he did not count on, was the Texas law that allows jurisdictions to increase property taxes as much as 10% per year as the market value of his home increased. For the first few years of his retirement everything was OK. Then folks around these parts began to find the subdivision, which my builder called ‘the best kept secret in Texas’. His $120,000 house is now closer to $350,000 and rising, and his taxes are on following suit.
This is not a problem for the near 65 year old retiree as both the school district and county taxes are capped when you reach 65 for this area. The only tax left is a utility tax, and it is going down as property values go up. However, the further you are off the 65 figure, the greater the effect of Texas property taxes affect you.
Overall Texas has one of the lowest total tax rates, however, I would caution the early retiree to be cautious of the potential for a sizable increase in property tax before you reach the age of 65.