Comment on ‘My Property Tax Went From $15K to a Life-Altering $91K a Year’

• LovableSidekick@lemmy.world ⁨3⁩ ⁨weeks⁩ ago

  Uhhh… whe your house goes up in value, that’s how much somebody might pay to buy it IF YOU SOLD IT. Until then you don’t get the money, and you’re not rich. Srsly what grade are you in?

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  • WoodScientist@sh.itjust.works ⁨3⁩ ⁨weeks⁩ ago

    Now it’s true that you can borrow against your home value - this is known as a home equity loan or a line of credit.

    That is literally how every billionaire funds their lifestyle, just borrowing against stocks instead of home equity. If people with $4 million homes are not rich, then neither are most billionaires.

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    • LovableSidekick@lemmy.world ⁨3⁩ ⁨weeks⁩ ago

      It’s also NOT literally how a typical homeowner lives their life. Those are the people I’m talking about, who are being taxed on money they don’t have.

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  • michaelmrose@lemmy.world ⁨3⁩ ⁨weeks⁩ ago

    They are paying money based on wealth they can obtain at any time directly by selling. So if you pay $50k and end with a 4M home you can sell it and live on the millions of dollars.

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    • LovableSidekick@lemmy.world ⁨3⁩ ⁨weeks⁩ ago

      What if the real estate market cools off and they never get their millions of dollars - do you think they should get a refund for all the years they paid the higher tax on the expectation of getting rich which never happened?

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      • michaelmrose@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

        Why would that be so.

        Any investment has risks. On average real estate taxes are overwhelmingly taxes on real gains that are actually both enjoyed and eventually realized often without a commensurate tax rate especially when they are given to descendants and the value is “reset” to the level it was received and all those gains magically poof and cease even being capital gains.

        A tax payer funded remission when the market drops would be full on pants on head crazy for so many reasons. It would encourage stupid risk on the basis that it would be subsidized by the government, it would be paid by everyone but overwhelmingly enjoyed by the rich, and it would oft represent fake losses. For instance collecting 10,000 for 5 years on a 1M property then remitting 25k back largely to the 1% who overwhelmingly own the country then oops it recovers its value after the crash!

        Real permanent loss of value in consumer real estate is rare and impossible to sanely effectively insure against. Fortunately it is a fucking fake problem.

        It is highly weird to see a bunch of people in the top 10% whining about the only real way they remotely pay their share.

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