Buying a high property tax bill along with the condo

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Post Reply
Topic Author
Base Hit
Posts: 16
Joined: Thu Sep 03, 2020 8:53 pm

Buying a high property tax bill along with the condo

Post by Base Hit »

I'm nearing retirement and have been looking at active adult 55 & up communities. I have a paid off single family home in a good neighborhood, but know it's healthier to have more social interactions and maintenance free housing, as I age. I've found a perfect over 55 condo development near me, but the tax bill will be double my current home to $14k/ year. I can afford the higher tax and condo fees, but feel trepidation about it. My life long conservative spending has allowed me this opportunity, but it's also preventing me from acting. Lower tax communities will take me much further away from my circle of friends and family. Any thoughts?
LittleMaggieMae
Posts: 1234
Joined: Mon Aug 12, 2019 9:06 pm

Re: Buying a high property tax bill along with the condo

Post by LittleMaggieMae »

It seems odd to me that the property taxes would jump so much for a "55 and over community" - I doubt the property taxes need to pay for the communities public schools for example. Do you know why the property tax bill will be higher? Is some of the "property tax" bill going towards some of the services that the community provides (as in the community is solely responsible for the streets and lights and sewers and street scaping and the guard at the front gate? Although those tend to be HOA kind of expenses.... rather than Property taxes that go to pay for State, County, and City stuff...

Perhaps knowing what the higher property taxes will provide for you (how you benefit from them) in the 55 and over community will make the amount seem less "of an onerous expense that has little or no value" to you.
JBTX
Posts: 8781
Joined: Wed Jul 26, 2017 12:46 pm

Re: Buying a high property tax bill along with the condo

Post by JBTX »

$14k seems like an awfully high tax bill for a condo. I suspect that includes some other fees. Nonetheless if it is "perfect" and you can afford it I wouldn't let an extra $7k per year in taxes keep me from enjoying my retirement.
DSInvestor
Posts: 11559
Joined: Sat Oct 04, 2008 11:42 am

Re: Buying a high property tax bill along with the condo

Post by DSInvestor »

When you own a condo, make sure you take a good look at the finances of the condo association. If there are not sufficient reserves, you may be hit for special assessments above and beyond your standard condo dues.
Wiki
AlohaJoe
Posts: 6203
Joined: Mon Nov 26, 2007 2:00 pm
Location: Saigon, Vietnam

Re: Buying a high property tax bill along with the condo

Post by AlohaJoe »

Base Hit wrote: Thu Feb 25, 2021 11:53 pm the tax bill will be double my current home to $14k/ year. I can afford the higher tax and condo fees, but feel trepidation about it.
What else are you going to do with that $7,000 a year? Die with it still in the bank?
Topic Author
Base Hit
Posts: 16
Joined: Thu Sep 03, 2020 8:53 pm

Re: Buying a high property tax bill along with the condo

Post by Base Hit »

LittleMaggieMae wrote: Fri Feb 26, 2021 12:15 am It seems odd to me that the property taxes would jump so much for a "55 and over community" - I doubt the property taxes need to pay for the communities public schools for example. Do you know why the property tax bill will be higher?
The accessed value in the newer construction is double my current home, which is why. It's all school, local and county tax. Mostly school tax and there's no tax break for over 55s in Pennsylvania, as far as I know. Everyone pays.
Topic Author
Base Hit
Posts: 16
Joined: Thu Sep 03, 2020 8:53 pm

Re: Buying a high property tax bill along with the condo

Post by Base Hit »

[/quote]

What else are you going to do with that $7,000 a year? Die with it still in the bank?
[/quote]

You're right. I have to get over this value/ YOLO battle.
User avatar
snackdog
Posts: 1255
Joined: Wed Nov 12, 2014 4:57 am

Re: Buying a high property tax bill along with the condo

Post by snackdog »

$7000 plus the HOA fee would go a long way toward paying people to maintain your current home - landscaping, snow, roof, insurance etc. Be careful leaving a home and neighborhood you like for a unknown condo situation which could be quite a downgrade in many ways, not least of which could be a nasty condo association.
adamthesmythe
Posts: 4503
Joined: Mon Sep 22, 2014 4:47 pm

Re: Buying a high property tax bill along with the condo

Post by adamthesmythe »

> The accessed value in the newer construction is double my current home, which is why. It's all school, local and county tax.

So you're really asking if you should pay more to get more. This is the universal choice, and no one except you can decide if it's worth it.

> there's no tax break for over 55s in Pennsylvania, as far as I know.

Not true in the PA city where I lived (which, by the way, I left for a low property tax state with better weather and recreational options.)

# What else are you going to do with that $7,000 a year? Die with it still in the bank?

You CAN take it with you, but you just won't be able to derive any enjoyment from it.
Gill
Posts: 7775
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: Buying a high property tax bill along with the condo

Post by Gill »

Are you sure those are just real estate taxes? $14,000 a year would be the taxes on a $1 million to $1.5 million condominium in most of Florida.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal
Cycle
Posts: 1976
Joined: Sun May 28, 2017 7:57 pm
Location: Minneapolis

Re: Buying a high property tax bill along with the condo

Post by Cycle »

Is the new place in a location that will be great for walking? That is I think the most important thing when in retirement, that you can get out and stay active. I would pay exorbitantly for that, as I view it as an investment in my health. Being active is so very important.

You might even be able to switch to rental cars/ Ubers/ transit. I live in a building that is mostly retirees and lots of folks here don't drive or don't own cars or their cars have tabs from like 2005. That is a way to keep costs low when obviously living in a prime location will cost about 3x per square foot of housing compared to sprawl land.

Our building has a social committee and there are regular networking events, which is funny bc we are a family with young kids but everyone at these events is like 65+
Never look back unless you are planning to go that way
User avatar
LadyGeek
Site Admin
Posts: 77603
Joined: Sat Dec 20, 2008 5:34 pm
Location: Philadelphia
Contact:

Re: Buying a high property tax bill along with the condo

Post by LadyGeek »

This thread is now in the Personal Consumer Issues forum (where to live, taxes).
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
Topic Author
Base Hit
Posts: 16
Joined: Thu Sep 03, 2020 8:53 pm

Re: Buying a high property tax bill along with the condo

Post by Base Hit »

Cycle wrote: Fri Feb 26, 2021 10:37 am Is the new place in a location that will be great for walking? That is I think the most important thing when in retirement, that you can get out and stay active. I would pay exorbitantly for that, as I view it as an investment in my health. Being active is so very important.
Yes, miles of wooded walking trails and the surrounding neighborhood is also walkable/ bike-able. Good point on the health aspect.
Topic Author
Base Hit
Posts: 16
Joined: Thu Sep 03, 2020 8:53 pm

Re: Buying a high property tax bill along with the condo

Post by Base Hit »

snackdog wrote: Fri Feb 26, 2021 9:05 am $7000 plus the HOA fee would go a long way toward paying people to maintain your current home - landscaping, snow, roof, insurance etc. Be careful leaving a home and neighborhood you like for a unknown condo situation which could be quite a downgrade in many ways, not least of which could be a nasty condo association.
Yes, practically speaking that's true. But I remember my Mom living alone in her big split level house with very few social connections. Her friends had all moved away and young families moved in. When we finally convinced her to move to a condo building she liked, she was able to make new friends and I saw her rejuvenated again. A risk? Sure, but I have been careful to research and speak to residents.
tibbitts
Posts: 15809
Joined: Tue Feb 27, 2007 6:50 pm

Re: Buying a high property tax bill along with the condo

Post by tibbitts »

LittleMaggieMae wrote: Fri Feb 26, 2021 12:15 am I doubt the property taxes need to pay for the communities public schools for example.
Why the doubt? The community isn't likely its own taxing authority; everyone in the town/city/village probably pays for the schools through property taxes. I know there are some places in the U.S. that exempt older residents from paying school taxes. I think about two people live in those places; the rest of us pay for schools regardless of age.
Topic Author
Base Hit
Posts: 16
Joined: Thu Sep 03, 2020 8:53 pm

Re: Buying a high property tax bill along with the condo

Post by Base Hit »

Revisiting this thread as a followup. I wound up doing the move in May and it's been great. I can see there are times when money is secondary to quality of life. Thanks all for your perspectives.
Leesbro63
Posts: 7449
Joined: Mon Nov 08, 2010 4:36 pm

Re: Buying a high property tax bill along with the condo

Post by Leesbro63 »

Gill wrote: Fri Feb 26, 2021 10:19 am Are you sure those are just real estate taxes? $14,000 a year would be the taxes on a $1 million to $1.5 million condominium in most of Florida.
Gill
In the Pittsburgh area, a $1M assessed property would incur about $30,000 in property tax
randomguy
Posts: 9626
Joined: Wed Sep 17, 2014 9:00 am

Re: Buying a high property tax bill along with the condo

Post by randomguy »

Leesbro63 wrote: Wed Nov 24, 2021 7:12 am
Gill wrote: Fri Feb 26, 2021 10:19 am Are you sure those are just real estate taxes? $14,000 a year would be the taxes on a $1 million to $1.5 million condominium in most of Florida.
Gill
In the Pittsburgh area, a $1M assessed property would incur about $30,000 in property tax
Outside of Knoxville it would be like 5k. Some places have high property taxes. Others dont.
Leesbro63
Posts: 7449
Joined: Mon Nov 08, 2010 4:36 pm

Re: Buying a high property tax bill along with the condo

Post by Leesbro63 »

randomguy wrote: Wed Nov 24, 2021 8:08 am
Leesbro63 wrote: Wed Nov 24, 2021 7:12 am
Gill wrote: Fri Feb 26, 2021 10:19 am Are you sure those are just real estate taxes? $14,000 a year would be the taxes on a $1 million to $1.5 million condominium in most of Florida.
Gill
In the Pittsburgh area, a $1M assessed property would incur about $30,000 in property tax
Outside of Knoxville it would be like 5k. Some places have high property taxes. Others dont.
It's a mixed bag here. State income tax (Pennsylvania) is just over 3% (flat rate), which is low for the area (Northeast/Mid-Atlantic states). And Social Security income, as well as IRA (and other sheltered accounts) withdrawals are not taxed. But property taxes in the urban areas are crazy high.
Gill
Posts: 7775
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: Buying a high property tax bill along with the condo

Post by Gill »

Leesbro63 wrote: Wed Nov 24, 2021 7:12 am
Gill wrote: Fri Feb 26, 2021 10:19 am Are you sure those are just real estate taxes? $14,000 a year would be the taxes on a $1 million to $1.5 million condominium in most of Florida.
Gill
In the Pittsburgh area, a $1M assessed property would incur about $30,000 in property tax
I was basing my statement on market value, not assessed value. Then can be vastly different so the only fair comparison is to use taxes as a percentage of market value.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal
Leesbro63
Posts: 7449
Joined: Mon Nov 08, 2010 4:36 pm

Re: Buying a high property tax bill along with the condo

Post by Leesbro63 »

Gill wrote: Wed Nov 24, 2021 10:00 am
Leesbro63 wrote: Wed Nov 24, 2021 7:12 am
Gill wrote: Fri Feb 26, 2021 10:19 am Are you sure those are just real estate taxes? $14,000 a year would be the taxes on a $1 million to $1.5 million condominium in most of Florida.
Gill
In the Pittsburgh area, a $1M assessed property would incur about $30,000 in property tax
I was basing my statement on market value, not assessed value. Then can be vastly different so the only fair comparison is to use taxes as a percentage of market value.
Gill
They reassess here every few years to market value. Someone buying a $1M property here had better plan on $2500/month taxes.
calwatch
Posts: 690
Joined: Wed Oct 02, 2013 1:48 am

Re: Buying a high property tax bill along with the condo

Post by calwatch »

Base Hit wrote: Tue Nov 23, 2021 8:54 pm Revisiting this thread as a followup. I wound up doing the move in May and it's been great. I can see there are times when money is secondary to quality of life. Thanks all for your perspectives.
Thanks for the follow up and glad you were able to spend some money on something which improves your health and wellbeing. Sometimes we forget what we are really saving for.
Gill
Posts: 7775
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: Buying a high property tax bill along with the condo

Post by Gill »

Leesbro63 wrote: Wed Nov 24, 2021 12:26 pm
Gill wrote: Wed Nov 24, 2021 10:00 am
Leesbro63 wrote: Wed Nov 24, 2021 7:12 am
Gill wrote: Fri Feb 26, 2021 10:19 am Are you sure those are just real estate taxes? $14,000 a year would be the taxes on a $1 million to $1.5 million condominium in most of Florida.
Gill
In the Pittsburgh area, a $1M assessed property would incur about $30,000 in property tax
I was basing my statement on market value, not assessed value. Then can be vastly different so the only fair comparison is to use taxes as a percentage of market value.
Gill
They reassess here every few years to market value. Someone buying a $1M property here had better plan on $2500/month taxes.
Florida has a cap on assessments for permanent residents. My assessment is less than half of market value.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal
Dottie57
Posts: 10523
Joined: Thu May 19, 2016 5:43 pm
Location: Earth Northern Hemisphere

Re: Buying a high property tax bill along with the condo

Post by Dottie57 »

Base Hit wrote: Fri Feb 26, 2021 8:39 am
What else are you going to do with that $7,000 a year? Die with it still in the bank?
[/quote]

You're right. I have to get over this value/ YOLO battle.
[/quote]

I’ve moved into the same type of thing this past summer. With more property tax and higher HOA fees. It is worth the money and no kids to leave money to.
Post Reply