Chainwright wrote:
Hmmm, My problem is with Property taxes. in Texas we have the 3rd highest property tax rates in the nation. Yup, Texas keeps advertising:"Come to Texas, where housing is cheap," and I laugh. Yeah you may be able to buy a home for 200K which in Cali could run you 800K to 1M+ as in NYC. But, what is not advertised is that you Property taxes go up between .5% to 1% (i'm being nice) per yr. So on a 200k house you start out paing 8000+ a yr in property taxes. We're paying 14K right now. But out of principle we don't see why we should. To us it's outrageous. Just imagine all those folks that live in homes that were Passed down to them from generation to generation, what do you tell them? "sorry, Too bad." "Your family didn't leave you enough money to pay for taxes in the future? well you gotta sell and git." As a retired vet, that's definitely NOT what I fought for.
The average effective property tax rate in Texas is 1.86% The taxes on your $200,000 house should be around $3700.00, not $14,000. If your relatives bought that home for $200K and it's value has risen to just over $750,000 (the valuation needed for property tax to be $14,000 per year) and you inherited that house, they have left you more than enough valuation to pay that $14,000. If you don't want to live there, sell and pocket that profits. If those same relatives kept borrowing and refinancing and actually have no equity and no other assets, the law does not transfer that tax liability to you, let the probate court sort it out and you walk away with what you had before they died, nothing. The actual fact is Texas has the 33rd highest total tax burden among the 50 states. So yes, it would make economic tax sense for people in 32 states to move to Texas and the powers to be in Texas thinks it makes sense to promote that fact.