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Comment on Owing your home today is nearly impossible, but even if you did the ever increasing property taxes will bury you

michaelmrose@lemmy.world ⁨2⁩ ⁨days⁩ ago

Comparing property taxes now in 2025 dollars to unadjusted original cost in 1950 dollars is nonsensical. The two numbers bear no relation nor should they.

The average social security check is $1,978 a month or $23,736 per annum. Half of that is $11,868. Lets suppose he lives in CA where the annual rate for owner occupied is 0.74%. His house would be worth approx 1.6 million dollars. To to be clear he is whining about paying the appropriate and legal tax on his fully owned 1.6M cash hoard. This is a great problem to have.

If its that burdensome he can cash out and even with rent payments for the rest of his life live great even if he has no other savings of any sort.

Looks like about $5800 a month gradually increasing with inflation for at least 25 years.

If he has another $400,000 which seems super likely since I don’t think he’s actually living in his 1.6M house on $12,000 a year it could be more than 7500 a month.

If we add a little realism and only include another 15 years he could probably actually withdraw about 11,000 a month.

kiplinger.com/…/average-monthly-social-security-c… www.tax-rates.org/…/property-tax-by-state

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shortrounddev@lemmy.world ⁨2⁩ ⁨days⁩ ago
I think it’s the moral issue of having to cash out your own property to afford to live in something you built and already own

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- michaelmrose@lemmy.world ⁨2⁩ ⁨days⁩ ago
  Property tax funds important things like schools, emergenct services, etc.
  
  if he was destitute otherwise would already have sold it. You are arguing in favor of a tax break for some rich prick probably worth north of 3 million not paying the taxes that pay for your kid to get a decent education because basically feels.
  
  Its no more immoral than you giving up your income.
  
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  - faythofdragons@slrpnk.net ⁨2⁩ ⁨days⁩ ago
    There is no way you can convince me that gentrification is actually good for kids. Property tax funding education does nothing but punish poor families.
    
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    UnderpantsWeevil@lemmy.world ⁨2⁩ ⁨days⁩ ago
    Property taxes funding education, in a state like Texas where school districts are seized by the state and systematically dismantled by private equity interests operating in state-appointed positions, is a fucking joke.
    
    This isn’t strictly an issue of taxation. Its an issue of (un)representative governance forcing people into a privatized model by leveraging the pain caused through dysfunctional public services. “Oh oh! Crimes up! We need more cops! Oh oh! Schools are failing! So we need more… checks notes football stadiums and administrative offices.”
    
    It’s deliberate mismanagement intended to destroy confidence in public institutions.
    
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  - shortrounddev@lemmy.world ⁨2⁩ ⁨days⁩ ago
    I argue that we should replace property taxes with income taxes because property taxes lead the disparities in outcomes between different jurisdictions
    
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    glockenspiel@programming.dev ⁨1⁩ ⁨day⁩ ago
    The wealthy often have near zero or net negative income. It’s one reason why income taxes are optional for them but property taxes ultimately aren’t.
    
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  - shalafi@lemmy.world ⁨2⁩ ⁨days⁩ ago
    
    1.6M cash hoard
    
    Cash is liquid, the theoretical home in question is not.
    
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    michaelmrose@lemmy.world ⁨1⁩ ⁨day⁩ ago
    It trivially is in any hot market
    
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- RememberTheApollo_@lemmy.world ⁨2⁩ ⁨days⁩ ago
  Seconded. This is inaccessible net worth. It is useless to someone who cannot take advantage of it. Sale would incur capital gains, which would be significant, and finding another property to live in would be just as unaffordable.
  
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  - glockenspiel@programming.dev ⁨1⁩ ⁨day⁩ ago
    No. Capital gains taxes are not taken from your residence.
    
    …does anyone in this thread actually own a residence or at least conduct a basic level of research before forming strong opinions?
    
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    Cryophilia@lemmy.world ⁨1⁩ ⁨day⁩ ago
    Capital gains absolutely apply to primary home sales. You’re just allowed to exclude the first $250k of gains, or $500k if married filing joint.
    
    www.irs.gov/taxtopics/tc701
    
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UnderpantsWeevil@lemmy.world ⁨2⁩ ⁨days⁩ ago

Lets suppose he lives in CA where the annual rate for owner occupied is 0.74%. His house would be worth approx 1.6 million dollars.

That’s largely due to the property inflation from the tech sector and not consistent across the state. You could be in San Fransisco and see your land 10x in value as the city explodes around you or you could be at the ass end of Oakland or the rural east end and still live in a slum.

This guy could also be from Texas - in the exurbs of Austin, Dallas, Houston, or El Paso - and be looking at closer to 1.5-2% annual rates. Very possible he acquired some dirt cheap land in Beaumont or Bexar County only to see his $5k plot balloon to $100-200k over the course of 20 years.

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- glockenspiel@programming.dev ⁨1⁩ ⁨day⁩ ago
  Either way for California he wouldn’t be affected because Californiamnproperty taxes are effectively snapshotted at time of purchase and grandfathered for people like him. If he truly bought or built 50 years ago and ows it outright then prop 13 has long capped what he pays decades ago.
  
  People like him, in California, are subsidized by the modern generation who don’t get capped by prop 13. And when he sells that house it’s value gets assessed at current market value and full taxes are due from the buyer.
  
  Put shortly, his story is likely bullshit if he’s from California. And people without houses and salty about it need to do some research.
  
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- michaelmrose@lemmy.world ⁨1⁩ ⁨day⁩ ago
  If this was so it wouldn’t be half his ss in property taxes. Average ss is 1900 a month
  
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