Depressing thoughts about our home value?

[Koolau]

I just saw a report on local TV indicating home prices on Oahu have gone up from an average of $1mil to $1.1mil EVEN though sales are down 4%. Condos are stable in price and sales have gone down only 1%. We've been in a lack-of-housing crisis for many years now. Good for prices - bad for folks needing housing.

Last significant housing "downturn" on Island was '08/'09. We were able to play that to our advantage as our town house only went down 10% while the condo we bought had gone down 20%. Came out a near even trade. A nice townhouse for a million-dollar-view condo. Once in a while, you win the housing lottery.

Since we have no plans to sell anytime soon, we just sort of watch the prices of housing but get "depressed" about other things. YMMV

 

[athena53]

You know the amount of the taxes when you purchase your house. Just because someone buys the identical house next door for 2x the price you paid, why should your taxes go up? Let them rise with inflation and voted on mill levies but the original amount should be constant.

I have two issues with that. First, while it does allow seniors to keep their houses without fear of being driven out by high property taxes, it puts the tax burden on recent buyers and may even make people reluctant to move out. Second, the new buyer ends up with sticker shock. I suppose it can be quantified before buying, but it means that what the seller is paying is no indication of the bill you'll get.

I like the idea of valuing all homes at current market value but adjusting the mill rates so that overall tax revenues increase by a reasonable inflation %.

There are separate programs in some states that allow low-income seniors to forego increases (homestead exemption type laws) or defer them till the house is sold, which I think is fairer.

Today individuals just pay tax on real property, businesses typically pay a tax on their furniture etc. And intangibles tax has mostly done away with.

In my area (Jackson County, MO) I have to fill out a Personal Property declaration. It includes a car- OK, I do have one of those and pay a tax on the value. I must also provide a count of my pigs, cattle, chickens and other assorted critters, which I do not have. Good for a laugh.

 

[Walt34]

I must also provide a count of my pigs, cattle, chickens and other assorted critters, which I do not have. Good for a laugh.

Yep, we have that in WV too.

 

[Koolau]

I have two issues with that. First, while it does allow seniors to keep their houses without fear of being driven out by high property taxes, it puts the tax burden on recent buyers and may even make people reluctant to move out. Second, the new buyer ends up with sticker shock. I suppose it can be quantified before buying, but it means that what the seller is paying is no indication of the bill you'll get.

I like the idea of valuing all homes at current market value but adjusting the mill rates so that overall tax revenues increase by a reasonable inflation %.

There are separate programs in some states that allow low-income seniors to forego increases (homestead exemption type laws) or defer them till the house is sold, which I think is fairer.

In my area (Jackson County, MO) I have to fill out a Personal Property declaration. It includes a car- OK, I do have one of those and pay a tax on the value. I must also provide a count of my pigs, cattle, chickens and other assorted critters, which I do not have. Good for a laugh.

Yes, but have you checked your freezer?? We had a turkey in there for 3 years! How much would that cost in property tax?

 

[indiajust]

I loved how Tampa used automated comps to do revaluations every year. From 06 to 10, property lost 2/3 of its value and that showed up in the tax bill every year. Plus, FL is a homestead exemption state, so you pay full taxes the first year and then it declines about 20% a year for five years.

Raleigh was an 8 year ritual of old-boy network of friends masquerading as tax assessors.