Low interest rates in advanced countries have pushed money into real estate

Re:Low interest rates in advanced countries have pushed mone... by mbesto on Wednesday November 24, 2021 @04:55PM (#29335626)

> If paper wealth takes a shit the people that will be impacted will be retirees and the wealthy, not your average joes.

Also the elephant in the room is that property taxes are a derivative of your net worth, not your income. So if paper wealth (due largely to RE) continues to outpace income then we're in for a big hurting soonTM.

This is the hilarious part about critics against a wealth tax - we already have a wealth tax. I live Texas and people are about to have a brutal wake up call when they can't afford $10k/year in taxes because their $200k ranch they bought 5 years ago (and cost them $40k down) is now worth $500k.

Note - I have mixed feelings about the proposed wealth tax. The proposed implementation was misguided.

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Re:Low interest rates in advanced countries have pushed mone... by JamesBarney on Wednesday November 24, 2021 @05:27PM (#29335915)

I think property taxes in Texas are one the biggest reason our house prices have remained somewhat sane.

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Re:Low interest rates in advanced countries have pushed mone... by dnautics on Wednesday November 24, 2021 @06:07PM (#29336276)

Am I crazy? My friend owns a house in Sacramento. We (I'm in Texas) compared notes, and our property tax rates are comparable.

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Re:Low interest rates in advanced countries have pushed mone... by carom on Wednesday November 24, 2021 @10:27PM (#29337948)

I believe property taxes in Texas can be reevaluated when the value changes while you own the home. In California it is only upon sale.

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Re:Low interest rates in advanced countries have pushed mone... by dnautics on Wednesday November 24, 2021 @11:31PM (#29338240)

Oh that makes sense, thank you. In Texas they drive around and reassess your house in the springtime. Which is why all of the improvements to my house will be on the backside! Meanwhile the both of us are very recent homeowners, so the reassessment hasn't happened yet.

I do have a friend that has 100% service-connected disability... And Texas has a 0% property tax for veterans with that categorization. He's thinking about moving

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Re:Low interest rates in advanced countries have pushed mone... by mbesto on Wednesday November 24, 2021 @07:40PM (#29336984)

Anecdata: I lived in the bay area and moved to Austin, TX. My tax rate went from ~1.5% to ~2.2%

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Re:Low interest rates in advanced countries have pushed mone... by mbesto on Wednesday November 24, 2021 @05:41PM (#29336031)

You clearly haven't been to Austin... there's nothing sane about property values here.

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Re:Low interest rates in advanced countries have pushed mone... by JamesBarney on Wednesday November 24, 2021 @06:01PM (#29336212)

It's also the fasting growing city in the nation, and I think it'd be worse if we didn't have a ~3% property tax.

But probably better if they didn't have zoning.

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Re:Low interest rates in advanced countries have pushed mone... by naasking on Wednesday November 24, 2021 @06:21PM (#29336385)

Austin is utopia of sanity compared to Toronto where I live.

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Re:Low interest rates in advanced countries have pushed mone... by SilasX on Wednesday November 24, 2021 @10:40PM (#29338020)

You don't seem to be taking into account wealth other than real estate there.

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Re:Low interest rates in advanced countries have pushed mone... by pedrosorio on Wednesday November 24, 2021 @05:36PM (#29335979)

No such "problems" in California due to prop 13 (yay...)

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