Travlr
Well-known member
Knock on wood...
Property Tax Increases
- Thread starter Mountaintown Creek Ranch
- Start date
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I wish that was the case here in Kansas. I never thought when I retired that quite possible I could lose my farm due to the State taxing system.
What state are you located in?
Remember a couple years ago when we had the discussions about how much it costs to live. Quite a few people on here were like... you kids now days just live too fancy and don't know how get by. We get by on $40K a year...
We were like... things are changing every day and just getting more and more expensive. We are not starting out in the world yall did...
I hope some of those people planned and are weatheing this ok and didn't sit there in denial.
We were like... things are changing every day and just getting more and more expensive. We are not starting out in the world yall did...
I hope some of those people planned and are weatheing this ok and didn't sit there in denial.
Travlr
Well-known member
I know people that paid off their home... and the taxes now are more than their payments were. And insurance? I used to be able to insure my house for what I paid for it, and that was one of the reasons I moved here. So I could control costs. Now the rules have changed and if I insure the house it must be insured for retail "replacement value" as though I couldn't rebuild the house myself. And the contents of the house are required to be insured at a percentage of the replacement value of the house, even if the house has nothing but a mattress in it. My contents are valued at over a hundred and forty percent of what I paid for the property... even though the only major purchase I've made is a new couch.
A few decades ago we went through an inflationary spiral and the media was making a big deal out of the fact that a lot of fixed income people were reduced to cutting so many corners that they were eating canned cat food. I'm wondering where that media coverage is now.
The stimulus money was a BAD IDEA. Increasing the money supply always leads to inflation.
You are absolutely right. There is a reason RVs and tiny houses are on the rise. $80K house that wss bought 50 years ago is worth $350K or more and the taxes and insurance are over $10K. What do they do... sell the house... buy an RV with a fraction of the money and travel with the rest. They do gate guard jobs or help do work at the camp sites they stay at and live out their years. I talk to people like that all the time. They can pay the expenses of staying in the park with what insurance and taxes alone would cost them at the previous house.
Most if them don't like the people moving in around their previous homes any way. They much prefer the RV communities.
One thing I've noticed over the last 5 yrs is if you want something built and have the means you better build it now. 10-15 yrs ago you could wait and save up to pay cash for a shop or barn. These days your better off making payments than saving up for 4 or 5 yrs to do a project. Inflation by far eats up any interest money you could save by paying cash.
Another thing I find crazy is how fast cash has lost it's value. I know a few guys that saved every penny they could over the last bunch of yrs to have a $100k safety net that's now worth about $50k. It's a real shame what's happened in the last 3 years.
Another thing I find crazy is how fast cash has lost it's value. I know a few guys that saved every penny they could over the last bunch of yrs to have a $100k safety net that's now worth about $50k. It's a real shame what's happened in the last 3 years.
You know how many people/ businesses are getting their butts handed to them right now because they thought they were too smart to pay down their debt when interest rates were 3%? They didn't pay down their debt and they didn't put cash away to operate when the rates came up and now they are up poop creek with out a paddle.
Although cash may not have the buying power right at this moment... wait for the correction. It has already started. Plus, that cash is returning more than it has in a long time while its waiting for the correction.
Travlr
Well-known member
I'd love to see 17% interest rates for about six months or so to curb inflation. That's where interest rates were back in the (?) late seventies and if you put some cash in long term CDs they were real money makers once inflation slowed down and the rates went back down.
That's what it takes to curb inflation, high interest rates. History tells us it will be hard on people with debt and people with cash will buy up the defaulted assets for pennies on the dollar.
1982vett
Well-known member
Son bought a home 2 years ago. He could have gotten a 30 year mortgage for 3.3% or a 15 year for 3.18%. We encouraged him to go for the 30 year and pay it out as a 15 is he so wished to pay off early. Did he listen? NO!
I'm getting almost 5.5% on the 17 week T-Bill that transacts tomorrow. Yes, I don't like paying interest either. I financed a vehicle for the first time in 2018. 3.83 on a 3 year note while earning ~8% on investments elsewhere. I've been through high interest rates. 14% on a home lone in 1982. 14.5% on a debt consolidation loan in 1984 when credit card debt was what, 18% or more.
I'm getting almost 5.5% on the 17 week T-Bill that transacts tomorrow. Yes, I don't like paying interest either. I financed a vehicle for the first time in 2018. 3.83 on a 3 year note while earning ~8% on investments elsewhere. I've been through high interest rates. 14% on a home lone in 1982. 14.5% on a debt consolidation loan in 1984 when credit card debt was what, 18% or more.
chaded
Well-known member
My wife and I took out a mortgage for our farm and house back in late 2017. We got a 30 year loan and we are about to pay it off in a month. A few years back I got allergic to debt so we have paid off the vehicles and threw everything at the mortgage. Some people like playing around with debt but not me, not anymore.
Travlr
Well-known member
Funny how there are people that will preach debt as a way to be financially intelligent... and never seem to figure out that the people loaning the money are the ones getting rich.
farmerjan
Well-known member
My mtg rate is 2.87% taken out in 2021..... 30 years... it will be paid off when I am 96.... it was only for 75,000 for the house with me putting down a decent downpayment... I pay $380/ mo more or less with taxes and insurance included...
I have no intention to pay it off anytime soon. I can use the money it is saving me elsewhere right now. Sure, I will be paying a good amount in interest over the long term... but nothing like the $550 mo rent on the other house, with nothing to show for it but a landlord that was getting to be very controlling about the garden and all that...
Most of my credit cards have rates in the upper 28-32 percent... I use them and pay them off every month except for a few that have no finance charges for 6 or 12 months.... I have learned to "play the system".....use their money for a month-45 days for free... takes some manipulating, but it has saved me alot to have the money to use for some things I needed, and a few I wanted, and I will be having some work done on the house after the first of the year with some of this saved money...
I like the idea of not having to pay any interest and using someone else's money for a month at a time......but you have to be disciplined and I finally "got it" and am in better shape than I was for the last 30 years... my son is getting "allergic" to any debt except for the mortgages on the farms.... he hates to even use the line of credit now with the interest rates... sometimes it cannot be avoided for a month or 2 as we determine when to sell calves and such... but little by little he hopes to be operating more on his own money and not paying interest...
Debt is going to break this country and so many people have such a cavalier attitude towards it. Sometimes it cannot be avoided and can be a smart thing if it is, say, a piece of equipment that you need to function or operate better or more efficiently.... but overall we are trying to get away from it as much as possible...
I have no intention to pay it off anytime soon. I can use the money it is saving me elsewhere right now. Sure, I will be paying a good amount in interest over the long term... but nothing like the $550 mo rent on the other house, with nothing to show for it but a landlord that was getting to be very controlling about the garden and all that...
Most of my credit cards have rates in the upper 28-32 percent... I use them and pay them off every month except for a few that have no finance charges for 6 or 12 months.... I have learned to "play the system".....use their money for a month-45 days for free... takes some manipulating, but it has saved me alot to have the money to use for some things I needed, and a few I wanted, and I will be having some work done on the house after the first of the year with some of this saved money...
I like the idea of not having to pay any interest and using someone else's money for a month at a time......but you have to be disciplined and I finally "got it" and am in better shape than I was for the last 30 years... my son is getting "allergic" to any debt except for the mortgages on the farms.... he hates to even use the line of credit now with the interest rates... sometimes it cannot be avoided for a month or 2 as we determine when to sell calves and such... but little by little he hopes to be operating more on his own money and not paying interest...
Debt is going to break this country and so many people have such a cavalier attitude towards it. Sometimes it cannot be avoided and can be a smart thing if it is, say, a piece of equipment that you need to function or operate better or more efficiently.... but overall we are trying to get away from it as much as possible...
Debt isn't always a bad thing. People in business are sometimes better off holding cash and carrying debt. On the other hand owing $110,000 on a fancy dually and $120,000 on a horse trailer to rodeo in at 8% interest might not be the smartest decision.
We recently sold a business we owned for 16 yrs. We always tried to pay the loans we had off early and stay ahead. Looking back I should have kept the business debt and paid off personal debt. Remember the two fastest ways to get rich are real estate and tax avoidance and they can't tax debt.
Travlr
Well-known member
I'd rather loan myself the money by paying cash and pay myself the interest I would otherwise have paid someone loaning money.
And of course "they" can tax debt. If you buy real estate and only have ten percent equity in a piece of property... you are still obliged to pay your property taxes on the entire value of the property and it will even increase over time.
But you get the appreciation on debt.
Travlr
Well-known member
Paid for or leveraged you still get the appreciation.
Caustic Burno
Well-known member
No they can't tax debt but they can take everything else you own.
