Property tax? Booooo.

[SrslySirius]

So I inherited a house earlier this year. No mortgage to keep up or anything like that. Being the naive adult I am, it seemed like a nice little windfall that I could simply hold on to without any upkeep.

Now I've discovered that property tax is a thing, and it's been delinquent since February. Apparently I owe about 900 bucks. This is including penalties, but the base tax rate is 2.5% of the house's "appraised" value, which fortunately is considerably lower than its actual value (I think). This house is in Texas, so I'm not even living in it, but paying rent for my place in Atlanta. I have immediate family staying there, who aren't in great financial shape, so I'm going to have to pay this off. It sure does suck though.

Bitching aside, my question is this: how the fuck do people pay off 30-year mortgages and such on top of these taxes? In that span of time you're paying a huge chunk of the house's value just to the state. If you live there long enough, you basically pay for it twice. Does that make any sense? Is it even worthwhile owning property long-term? It seems like it would make way more sense to sell your home, leverage that money elsewhere, and rent a place. Which is exactly what I would do if not for the aforementioned obligations. Or if starting with no equity, just rent from the beginning.

I'm new to the whole being an adult with responsibilities thing, so forgive me if I'm missing some obvious stuff here.

[WillieMcFML]

i'm here to help, thomas

i will pay off your delinquent taxes in exchange for 10% equity in the home

pm your paypal

[SrslySirius]

i'm here to help, thomas

i will pay off your delinquent taxes in exchange for 10% equity in the home

pm your paypal

Shoulder the tax burden forever, and I'll give you 15.

[WillieMcFML]

i'm here to help, thomas

i will pay off your delinquent taxes in exchange for 10% equity in the home

pm your paypal

Shoulder the tax burden forever, and I'll give you 15.

okay, but only if by "forever" you mean until we sell it in the next year

[Rollo Tomasi]

register the house with HUD as low income property rental and Obama will pay for your poor relatives to live in the house for free

[Brittney Griner's Clit]

If you are working towards getting your hood pass you should think twice about threads like this.

[PLOL]

You made a thread complaining about property taxes. Congrats, you are now a member of the Caucasian community.

[tony bagadonuts]

Hey skippy you have to pay homeowner's insurance too, so you'd better call your insurance guy toot sweet before your shithole burns down. Get a landlord policy as you don't need to insure the contents, but do it now. And get a renters policy on your own place while your at it if you don't have one already.

So let me get this straight, you owe $900/year on a place worth $36k?? What it is a trailer?

Assuming a $250/year insurance premium, your nut on this place is $96/month. Assuming a 10% premium for repairs, if you can't get $105/month in rent from your deadbeat relatives then you deserve what you get. Even on welfare they're bringing in a grand/month. Market rent on this place has to be at least $400/month. Give them a 25% discount, collect $300 and your positive cash flow/net operating income (NOI) is $200. I'm keeping this simple so as not to confuse you.

If you determine your NOI is $2400/year, and you could liquidate the property for $36k cash, then your assumed Return On Investment (ROI) is just under 7%. Not bad for your little shithole, but of course a true ROI calculation will take into consideration income tax consequences (positive and negative), vacancy rate assumptions, repairs and maintenance etc, as well as potential assumed appreciation.

If you give me more specifics I can crunch the numbers further. This is my line of work so it's no big deal.

Either way quit bitching about paying property taxes on an inherited property, it doesn't play well in any crowd.

[SrslySirius]

I appreciate the advice and will certainly look into it if/when the property becomes vacant. In the meantime, I think I'm just going to eat the cost for personal reasons.

[Flipper_Fair]

Insure it and burn it.

or, meth lab

[Corrigan]

Is it even worthwhile owning property long-term? It seems like it would make way more sense to sell your home, leverage that money elsewhere, and rent a place.

When you rent a place you are indirectly paying a percentage of the owner's property tax.

[PLOL]

Is it even worthwhile owning property long-term? It seems like it would make way more sense to sell your home, leverage that money elsewhere, and rent a place.

When you rent a place you are indirectly paying a percentage of the owner's property tax.

This.

Also, I'm glad you didn't inherit a condo with a $450/mo HOA fee.

[Steve-O]

So I inherited a house earlier this year. No mortgage to keep up or anything like that. Being the naive adult I am, it seemed like a nice little windfall that I could simply hold on to without any upkeep.

Now I've discovered that property tax is a thing, and it's been delinquent since February. Apparently I owe about 900 bucks. This is including penalties, but the base tax rate is 2.5% of the house's "appraised" value, which fortunately is considerably lower than its actual value (I think). This house is in Texas, so I'm not even living in it, but paying rent for my place in Atlanta. I have immediate family staying there, who aren't in great financial shape, so I'm going to have to pay this off. It sure does suck though.

Bitching aside, my question is this: how the fuck do people pay off 30-year mortgages and such on top of these taxes? In that span of time you're paying a huge chunk of the house's value just to the state. If you live there long enough, you basically pay for it twice. Does that make any sense? Is it even worthwhile owning property long-term? It seems like it would make way more sense to sell your home, leverage that money elsewhere, and rent a place. Which is exactly what I would do if not for the aforementioned obligations. Or if starting with no equity, just rent from the beginning.

I'm new to the whole being an adult with responsibilities thing, so forgive me if I'm missing some obvious stuff here.

Property taxes are usually factored into the mortgage itself, so essentially you have a $100/month mortgage. Before you buy any property you should know what the property taxes are as they vary from town to town

On a side note, you'll often see mega-mansions sell fairly cheap because the property taxes are astronomical, so you might get a $5 million home for $1.5 million, but the property taxes you pay are like having a mortgage on a $7 million home

[Zap_the_Fractions_Giraffe]

[neveragain39]

I have immediate family staying there, who aren't in great financial shape, so I'm going to have to pay this off.

This is a bad decision.

Don't you have any self-esteem?
Who ever is living there must pay you a monthly rent to cover taxes, insurance and repairs, at the very least.
Why won't you ask for it?
What is wrong with you?

And for the tax arrears, give them a monthly payment plan to pay it off monthly by early next year.

You'll never get laid, with your current attitude about money.

Jesus.

[4Dragons]

In before 'property tax rap'

[Baron Von Strucker]

holy fuck you are a little princess with first world problems.

[SrslySirius]

In hindsight, I can see how this thread comes off as whiney and bottomset-ish.

[simpdog]

In hindsight, I can see how this thread comes off as whiney and bottomset-ish.

Whine yes
Bottomset no

If you were bottomset you would be complaining about paying 19k property tax on some beautiful house.

Although you may not even whine that much because your 200k/yr can cover it.

[shortbuspoker]

I have immediate family staying there, who aren't in great financial shape, so I'm going to have to pay this off.

This is a bad decision.

Don't you have any self-esteem?
Who ever is living there must pay you a monthly rent to cover taxes, insurance and repairs, at the very least.
Why won't you ask for it?
What is wrong with you?

And for the tax arrears, give them a monthly payment plan to pay it off monthly by early next year.

You'll never get laid, with your current attitude about money.

Jesus.

I agree. I know that you feel like you are helping out family, but I would venture a guess that you are likely to get fucked over somewhere around 60% of the time. If you keep enabling them by giving them a place to live for free they have no incentive to do better. You should at the very least make them pay the taxes and pay the homeowners insurance.