Paying All Cash on a House to Avoid Payments MYTH
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- เผยแพร่เมื่อ 4 ต.ค. 2024
- If you pay all cash for a house, will you have any payments to make? You do. Most people forget about property taxes.
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Property taxes are a tax based on the value of your home (known as ad valorem) that every property owner must pay. This is an annual tax, so property owners pay it every single year.
Don't be fooled!
#Shorts #TH-camShorts #PropertyTaxes
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Id rather pay for house repairs, property taxes and insurance that gradually increases overtime versus paying for rent that fluctuates sporadically every time the economy collapses or when the FEDS dibble and dabble with interest rates
Exactly! This dude makes no sense
Same! How often does the economy COLLAPSE?
@@justinsalazar9070- You're right, he doesn't make sense. 😅
He’s not talking about buying vs renting. He’s talking about paying cash for a home vs financing one.
I hate pretending that you "own" something when the bank really does. I never leased a car in my life and I will never get a mortgage. If I can afford it then I can't afford it. Same goes with student loans. Never going to college either.. You can make 100k a year driving a truck.
Out of curiosity, do you rent or own a home?
@@USRealtyTraining what is the difference? You pay rent to a landlord or you pay taxes/rent to government. What is your point?
@@sogekingfromsniperisland7033 🤦♀️ Wow! It's not "Rent" to the govt, irs when you own a house. And taxes are gonna be there no matter what...
Your rent never ends tho'... Once your mortgage is paid off or the house was paid in cash, you have that money you can pull out or sell it and get your money and then some because it will appreciate.
You don’t get that with renting!😐
Bought a 500k house last year. Wrote a check for it. Closing is much quicker with no mortgage. :) Everyone does life their own way. This way works for us.
Rich. What u do for work?
@@JamBabloshis bless people like that with your mind set will not go high
@@guerline685 grammer sir
I would rather pay property taxes than be at the mercy of rent prices, which tend to be higher every time.
True! Thanks for watching.
He’s not talking about buying vs renting. He’s talking about paying cash for a home vs financing one.
True, but everyone pays property tax
Not renters!
@@USRealtyTraining what do you mean? I live in spring field Missouri, for a house that have a value of 180k you have to pay 1300 or 1400 dollar annual, but if you rent a house you have to pay 1500 or 1600 dollar a month, it's around 20k a year, if you buy a house you save yourself 20k a year for rent and you own a property, witch one is better?
@@blurredblues8778 You said that everyone pays property taxes in your first comment. I said "not renters." What this means is people who do not own property and instead rent their home, do not pay property taxes. This was not a statement that advocated for one option over the other, it was simply stating that renters do not pay property taxes, which is true.
@@USRealtyTrainingthat logic makes no sense. They are paying probably 10x more property taxes in a sense because that rent money is going nowhere. I’d rather have a 1/10 fixed payment that goes to nothing then than full thing. This is so dumb lol
@@BuddhismHotlineTV Renters do not pay property taxes because renters do not own property. If you own property, you pay property taxes.
Better than making two payments
You can pay it full in one payment or make it two payments if you want.
People that have the cash to buy a house cash are not worried about property taxes lol
Not uncle sam, property taxes are paid to the county in which the property is located and is based on whether or not the property is located in a city or outside the city.
You still gotta pay taxes to Uncle Sam plus interest to the bank that’s dumb advise
Thanks for watching bentleyjames4617. All cash purchase means no loan from the bank. No loan from the bank means no interest paid to the bank.
So is the point to rent then? Even if you have a mortgage, you're still going to pay those taxes. But at least you don't have the mortgage also if you own the house outright. Taxes can be rough depending on the area, but in most cases is a fraction of a mortgage. If you can buy a house outright and love the house, you should buy it.
So that is why you budget for the maintenance of the house also. Go liberal with it. Or that is what I am thinking if I can buy a house with cash first.
Always good to have a little nest eggs to help you out.
If you have the money pay it because you aren't being a fool. Regardless you have to pay taxes but you don't have to worry about foreclosure, ridiculous insurance requirements and whatever else. Only people that make money off you with monthly payments want to keep you down...live your life!!
Abolish property tax
it goes to the local goverments that use it to improve and build around the cities.
Why should we abolish property taxes?
They won’t. But I agree with u.
What if the house is $260,000 and you get a secured loan at 3% and you borrow 100,000 and you put $160,000 down, and the mortgage payments are over a thousand a month because of homeowners insurance HOA etc... 🤔 isn't that suppose to be included in house payments per month? You borrowed from back and put down from out of pocket??
As for paying cash for your personal house, It depends what the person wants. If you want to retire comfortably than yes pay it off, If you want to be WELL off/rich than no don’t pay it off.
The reasoning behind this is that if your interest rate is say 5%, Than you’re only saving 5%. You can get more bang for your buck by pulling out all the equity and buying bonds (Average 6%) or parking it in the S&P 500 which has historically averaged over 9% thus far. That will allow you to accumulate money faster at the expense of having a mortgage.
So it’s not really a black or white thing. If you were young and had good income you might decide to pull out equity and use it to invest which is what I did. But if you were older and just wanted to retire than you’d probably want to have no mortgage.
You teach so well thank you for this great information!!!
Glad you liked the video! Thanks for watching!
Is there a way not to pay property tax?
Rent.
Buy a rental property to pay the taxes on both
If you're a 100% disabled veteran in specified states.
Colorado after 10 years and over 65 years old .
A large trailer or 5th wheel on family farm property rent is cleaning horse stalls a few times a week .
Disabled veteran exemption
So if you have a mortgage, you don't have tonpay property taxes??? Or is the property tax any cheaper?
You still have to pay property taxes if you have a mortgage.
No they r not. He has a note and misery loves company.
DONT YOU HAVE TO PAY PROPERTY TAXES WITH A LOAN AS WELL?
WHAT DO YOU MEAN?
@@USRealtyTraining YOU SAID THAT IF SOMEONE WINS 1 MILLION BUCKS, YOU COULD PAY FOR THE HOUSE IN FULL, BUT STILL HAVE PROPERTY TAXES TO WORRY ABOUT. SO FOR THOSE WHO GET A LOAN AND MAKE MORTGAGE PAYMENTS, THEY STILL HAVE TO PAY PROPERTY TAXES. MY POINT IS, THAT YOU MAKE IT SEEM THAT BUYING A HOUSE IN FULL IS NOT A GOOD THING BECAUSE OF THE PROPERTY TAXES
@@mrloko9664 AH, NO. THIS VIDEO IS TO DEMYSTIFY THE COMMON THOUGHT THAT YOU DON'T HAVE TO PAY ADDITIONAL EXPENSES IF YOU BY A HOUSE WITH ALL CASH. THEY NEVER CONSIDER THE PROPERTY TAXES. I THINK YOU SHOULD DEFINITELY BUY PROPERTY DESPITE NEEDING TO PAY TAXES. HOPE THAT MAKES SENSE.
Not if youre a 100% disabled veteran my friend
Yeah and inow realtors want people that are paying with cash to pay it by bank with a title company making worst to buy a house
Pay taxes on the house or rent ? I would rather pay taxes
Agreed!
So what is the point of this?
Which part? What is the point of taxes?
What’s the point of this?
Some people think that if they pay all cash for a house, they don't need to make any payments. But, they always forget about taxes.
@@USRealtyTraining it was a figurative question, how many people savvy enough to have 100s of thousands of dollars to buy a home in cash are unaware of this?
Let me guess. He has a house payment. Just asking for a friend. Rather have free and clear with taxes and insurance than taxes and insurance with a note. I forgot some folks can’t add.
This video was a statement on how people forget that they have to pay property taxes. Is that what you're commenting on?
Well, that was horrible logic.
How so?
Nice video shortly and clearly
Glad you liked it, Johnny! Thanks for watching.
I rather pay property tax than making payments og 3k a month lol
$500 a quarter for $4k a month.. I know what I rather 😂
What?
Ty
You're welcome!
i would buy 5 houses for 150000, live in 1 and rent out the others. pure profit from there
Nowhere in America will you be able to buy 5 homes for $150,000. Maybe $1,500,000.. maybe.
@@andrewsalazar98 i live in midwest it’s cheap here
@@femboyellie they think Commiefornia and New Rat city are the only places in the USA
Wow! Amazing!