In this morning’s report, we consider the high importance of getting your home paid off before retirement.
But it goes further than that, because as we look at your “silent partner” (government) we see the move toward “renting your Life” picking up speed…and one of the most subtle ways this works is through never ending increases in property taxes.
So even for non-subscribers, the message is clear: You not only have to get a home paid off before pulling the golden parachute, but you need to be in a reasonable property tax area, or all your retirement planning can blow up.
Fun, huh?
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Your comment of how the gumnt slowly tightens the noose with increasing taxes means I’m the frog in the pot of cool water on the stove that is heating up. At what point can I still jump out?
Have you considered assessing Colorado for a move? Low property taxes due to state income tax. Have you priced the property taxes on a $220k to $240k house in Colorado Springs, Durango, or elsewhere up in the mountains? How does the state income tax affect social security – is it a double dip?
Maybe a half way point home (between Texas and Oregon) would be better for all of your family members!
What you have detailed out is what a lot of us are thinking. The property taxes are NOT going to level off. In my city, they hit the max EACH and EVERY year. If you try to fight each year, they use the flippers comps against you. It doesn’t matter if your house is over 60 years old and no improvements, they do not care. The attitude is leave if you don’t like it, there are plenty more who will buy your home, put $100k in it, and sell it for a profit. You can’t sell your house and make that profit and you can’t afford to put $100k in it, but hey, they don’t care, you are tax’d on the comps. I remember, about 15 years ago, reading about a senior woman living in Connecticut and paying $14,000 a year in property taxes! I couldn’t believe it or understand how she could do it. Now, I understand, but we could not do that!
In our city, they are also building Manhattan sized micro apartments: 200-400 sf (2 bedrooms) and pricing them high. This is the price the young have to pay to be close to jobs, restaurants, and bars…basically, they will live in a closet, not marry, and have no children while occupying those spaces. The developers have marketed this as a BENEFIT to the city; it is a strategy to make MONEY. Oh, they do not want the young to drive either, just walk, bike, or cab it.
In most areas with bars or nightlife, you can’t drive to and from these places because of the draconian DWI laws. I’m concerned about having even one drink in me and being stopped at a checkpoint, so I just don’t go out anywhere. There’s no fun if you’re always looking over your shoulder.
Been living on our SS for some years now. Property tax of approx $12.50 a month. Living budget is $2000 a month which allows cash left over for visits to the kids a couple times a year. Why would anybody remain in the USA if they could bail and miss most of the coming “troubles” while living very well in another country?
Amen, brother toucan, amen.
I like the idea of living in a van down by the river. Its good that I like that idea as it may be all my wife and I can afford.
The larger the van the better,done that ,it sure beats a tent ,done that to in the rain, also done it in the cold , and I must say i ostly hate a tent on the east coast Beach when its in the 90,s and it has just rained, the humidity will cause you to spend your last dollar on a place with air conditioning
what if we go into a huge depression.. I remember looking at my grandparents books.. they had a total income of two hundred thirty dollars.. during the last one.. this time the dollar will implode.. you just can’t be giving away spending two billion dollars more than the extra two billion dollars they are printing per day and neglecting our own infrastructure and people..
the other big thing.. is so many people have been getting loans and the loans have been sold to mortgage companies financed by .. ( guess which countries) and then a few years ago.. congress passed the law where they can take possession.. ( I think it was when JR. was in and they wanted to sell the toll roads and ports..
Just how would that work.. you have thirty days to divey up your money.. or we’re taking possession.. with congresses blessings.. Hmmm..
I might be wrong but that was how I seen it written.. maybe there is something different..
I don’t know what to do. I’m a mother of 4 grown boys and am now an empty nester, renting. only a small 2 bedroom costing me $330 a week. I will soon only have an income of around $400, so as you can see I wont be able to live off what’s left. I was looking at those tiny homes but they seem too small. I only have about $10,000 saved. The rents here are crazy high and homelessness is starting to show more and more, with many even middle class 2 parents working struggling. Any ideas what I could do would be greatly appreciated.
Living in NZ
not sure how to advise, except move more rural – the less convenient to business in the city the lower the rents generally,.
Find a semi-rural couple with a gentleman’s farm and trade part work for rent – keeps the gov’t out of the middle and conserves your capital
You do what second and third world people do. You share your living space with someone else. In greater Los Angeles, more than 50% of all households have non-family members under the roof.
The problem with living too rural (where I live now) is access to quality medical care. It’s a 65 mile drive to the nearest decent hospital center(either Fairfax or Charlottesville). The local hospital has just gone to FOR-PROFIT and the quality has been sacrificed for the almighty $$$.
Why not consider buying a place with a dock to rent out or a mother in law / guest house to augment costs? Basement apartment ?