You guys are way too cheery about an issue that has created misery and anguish for many homeowners who are facing being forced out of the very homes they have lived in for decades in some cases. Where I live in Dallas, TX our appraiser has cleverly flipped the values so that the majority of the value if placed in the land. Over the last couple of years the value of my structure actually went down, but the land value went up-by $75K! I can only protest the structure by demonstrating what needs to be be repaired-roof, plumbing, leaks, antiquated appliances etc. I can't protest the value of the land unless I can find other properties nearby in the same neighborhood with lower land values. I protest my assessment with the county every year and have done so over the past 10 years. I always manage to get a very small/meager reduction on my assessed value but I still wind up with a higher tax bill because like I said they increase the land value so much that it is impossible not to get an increase on my tax bill every year. All in all my taxes have DOUBLED from $5K to almost $10K over the past 8 years. In fact my tax bill this year was 15% higher than last year. I have not updated my home in the full 16 years I have lived in it. Despite needing a new roof I cannot afford it because all my money goes to paying these greedy taxing authorities. Dallas has the 6th highest tax rate in the whole state of Texas (out of 254 total counties). It is insane here. I am seriously considering selling my home and leaving (at least Dallas, I don't think I want to leave Texas). I appreciate your tips but it just doesn't apply here.
Make more money, move, get better at tax avoidance or do all three. Sorry, but that's how this world works. The world is getting increasingly hostile to those who won't adapt. Whining will not improve your situation.
@CRICKET MICKEY -- I agree! Grrrrrrrr pretty soon people might move to Mexico for a lower cost of living. Think Mexico will raise property taxes so illegals there can get free groceries? Not on your life!
@@Ankit-kq7wx The local property taxes we pay have nothing to do with Donald Trump or any other President that might occupy the White house for that matter.
@@Ankit-kq7wx My original comment is on property taxes. You somehow extrapolated that to local taxes being transferred to billionaires by Donald Trump. Now you're talking about something entirely unrelated. There are tax laws which companies use to lower their tax burden. And good for them. That is being smart. For example if you have a loss-meaning your company loses money that loss can be deferred to future taxes which can negate future taxes being paid. There is absolutely nothing wrong with that. A big business has BIG expenses. Those count as write offs. But lets stay on topic: local property taxes. Local officials in every city determine the tax rate. The President of the United States does not determine local tax rates. Again focus on the subject of my comment. Kind of like in First Grade-you know when we were 5 or 6 years old and had to learn to determine the main point of paragraphs we read. Well the main point of my paragraph is: local property taxes not what Donald Trump or other billionaires pay in taxes.
In regards to increased taxes on home improvements or additions, you could file for a tax abatement during the construction process. Your taxes won't go up for another 5 years on said improvements. That's how it works in my town anyway
If you buy an old house for say $100k and you spend a lot of money on it and double the value, are you not increasing the value, and thus the property tax (which is based on the value of it)?
Counties will constantly play with appraisal numbers to keep your taxes as inflated as possible, for the highest amount of revenue possible. And it’s a game you play every year. If you miss paying your taxes, fines and liens are placed and then after a time your house is sold off to the highest bidder at auction. It’s maddening. In one year my tax appraisal went up $17,500 out of the blue. They just play with these numbers and watch the money roll in.
So I could go and get taxes lowered since one side of a duplex is completely demolished 😳 things I wished I’d have known. You both are awesome and explained in detail many unanswered questions I had. Thank you
U.S property taxes are crazy. You go to Europe and your property taxes are only $100 a year. Unlike the U.S, property taxes aren't based on your home market value. Everybody pays the same $100 a year no matter if you live in a shack or a mansion.
I tried this..but after i rehabbed my property...the county tax appraiser basically told me my taxes were actually too low...and basically i should keep my mouth shut....ooops!
I'm getting ready to knock my house down and live in a storage shed I live in San Antonio and my taxes have gone from 3,500 in 2016 to 6,020 in 2020 this is insane the property and the house were purchased about 50 years ago for around $3,000 my house is really old and the value now is 140,000 really my house is worth about $5,000
I was told by them that if they come out and evaluate my home and there's "any" improvements that my taxes could actually go up even more. Maybe it's a scare tactic.
Hello, I'm currently appealing my taxes with the board of review and I'm on section 2c...with the Appellant Assessment request, I'm confused about what to put on the Land..building, and total section. Can someone assist me because I only have a few days left. Thank you
BASIC TAX LAW. BASIC BUSINESS LAW. BASIC REAL ESTATE LAW. If do not know about the tax agency in your area of Real Prop your walking on THIN ICE bad surprises may be in for you if you purchase in any area. !!! Be aware... be educated in Law or pay the very expensive PRICE of ignorance ~
I live in Massachusetts, also known as Tax-achusetts! I recently moved one town over as part of downsizing to save money. Well shortly after I bought this house, the town voted in a large property tax increase for everyone. After watching this video, I should probably check the tax values against comparable homes in the area. Love you two and your channel. Keep up the great work. P.S. I can just see Natali battling the town in her spin shoes. Let's dance!
@@RedactedNews Tax achusetts is not funny! The cancer is spreading to low tax states including mine, Texas, and other low tax states, these idiots are bringing their "socialist progressive values" and inflicting them on us and creating the same messed up state they just left thinking that, it will work this time because we can do it better, epic fail
Remember guys you will become lucky the wiser, smarter, and the better you are. Make sure you're knowledgeable about this and progressively push down property taxes. Believe it or not a home is a home owned and purchased by your hard earned money. "Don't settle for any argument that isn't aligned to your liking" says contentment. This is an everyday war they're not back down from
Learn your rights people. You have both state and federal constitutionally protected rights to own property. Your home is a Non Commercial Property. THE ONLY TAXES THAT CAN BE IMPOSED ARE IMPOST, EXPOST, AND EXCISE. You home is being taxed under excise, which is a privilege tax. Owning a home to provide shelter where no business is being conducted is a right! Not a privilege!
I don't understand why you would be paying the contractor in the purchase price and not a contract for the building and a separate contract for the improvements. Is there a sales tax benefit?
I own rentals in Austin and surrounding areas, the tax increases and the mistakes Austin appraisal district make every year are ridiculous, I feel bad for the dupes that don't know how to get things right. This video was no help btw
No, that's what happens when the "liberal progressives" take control of your state, they always need more $ to solve the problems they cause. I escaped NY 30 years ago and now I'm going to escape Austin TX, getting as bad as San Fran
Is it possible for the tax assessor's office to raise your property tax because it's under an LLC and not a homestead? The previous owner of a house we bought (which she did not live in but inherited upon her mother's death) was paying around $460/year. Then we buy the house under our LLC and we're charged over $1,000 in property taxes. I questioned this and the office tells me that its because it's a rental property and not my homestead. Does this sound correct? Is there anything I can do? Thanks, Rosie
Yes, this sounds correct. Many counties offer a "Homestead Credit" for primary residences, which would not apply to investment properties. The fact that the previous owner was receiving the credit without living in the property may have been an oversight, or due to it being an inherited property and the nature in which the deed was transferred.
Also, rental properties are sometimes taxed based on income vs home value. Depending on how much you profit on rent, maybe you can devalue the property and fight the taxes that way. I am not familiar with homestead credits but if it's not a commercial property I don't see how owning it under an LLC should make a difference in value of bricks and dirt
There are also firms that will handle the tax appeal for you (for a cut of the savings.) Win/Win (if you don't have the time to do it yourself.) Thanks again, to both of you!
This would be a tough one in my home state of Hawaii - Democratic Policies. We have a rail under construction paid for by the public that is over budget by $3B. The Mayor is proposing to increase property taxes for high-end investment homes and hotels. They won't do it on the middle-class but will look elsewhere - gas and sales. Hawaii is in the top 3 for the highest cost of living. If the Democrats continue to increase taxes. Sooner or later the working-class will notice these changes causing a protest or worse, riots like Paris. Hawaii has proven that too much Government with a Socialist agenda is far worse than Capitalism and that's why I left home for Vegas. Hawaii is a beautiful broken island...
Our property taxes doubled since we bought a house last year. Our next door neighbor bought his house a week after us. His taxes never went up. The people who bought their house 1 min away never had their taxes go up either. Oh boy, you know I'm furious.
Unless your house is double the value of your neighbors, your house may have been undertaxed and now it caught up when you purchased. At this point you should all be paying about the same. Usually if you're paying more on a new purchase it's cause your neighbors have owned their houses for years and the taxes haven't caught up to them. But in this case your neighbors bought the same time you did so my conclusion, your tax assessor hates you, lol
The original idea was to get the citizens of their country down by putting the by using this tax on everything. I just bought a 2011 Suzuki Kizashi from Missouri and was charged 0.06 percent of the value of the car. The people pulled out a big folder and looked up my car. They didn't even see the car they determined what to charge me by a book. And GA just increased the cost of the tax by double this year. This tax was made in the USA 🇺🇸 in the year 1920 when the people were still riding horses 🐎 so the people who had this idea were jackass so you can guess what party they were from. This is ridiculous and needs to be demolished all it does is keeps the working class, poor and the old citizens down.
She doesn't let him talk.. In all the videos I see this..I don't even finish watching the videos because of this.. So annoying .. You guys need to talk before doing the videos, so Natalie doesn't dominate the entire conversation.. Sorry guys but just telling you like it is....
Great topic Clayton! Doing this could really enhance your cash flow
Property Tax = Rent
Right it’s basically lot rent lol
You guys are way too cheery about an issue that has created misery and anguish for many homeowners who are facing being forced out of the very homes they have lived in for decades in some cases. Where I live in Dallas, TX our appraiser has cleverly flipped the values so that the majority of the value if placed in the land. Over the last couple of years the value of my structure actually went down, but the land value went up-by $75K! I can only protest the structure by demonstrating what needs to be be repaired-roof, plumbing, leaks, antiquated appliances etc. I can't protest the value of the land unless I can find other properties nearby in the same neighborhood with lower land values. I protest my assessment with the county every year and have done so over the past 10 years. I always manage to get a very small/meager reduction on my assessed value but I still wind up with a higher tax bill because like I said they increase the land value so much that it is impossible not to get an increase on my tax bill every year.
All in all my taxes have DOUBLED from $5K to almost $10K over the past 8 years. In fact my tax bill this year was 15% higher than last year. I have not updated my home in the full 16 years I have lived in it. Despite needing a new roof I cannot afford it because all my money goes to paying these greedy taxing authorities. Dallas has the 6th highest tax rate in the whole state of Texas (out of 254 total counties). It is insane here. I am seriously considering selling my home and leaving (at least Dallas, I don't think I want to leave Texas). I appreciate your tips but it just doesn't apply here.
Those property taxes are being used to take care of 'our friends' at the border sneaking in to the country..
Make more money, move, get better at tax avoidance or do all three. Sorry, but that's how this world works. The world is getting increasingly hostile to those who won't adapt. Whining will not improve your situation.
@CRICKET MICKEY -- I agree! Grrrrrrrr pretty soon people might move to Mexico for a lower cost of living. Think Mexico will raise property taxes so illegals there can get free groceries? Not on your life!
@@Ankit-kq7wx The local property taxes we pay have nothing to do with Donald Trump or any other President that might occupy the White house for that matter.
@@Ankit-kq7wx My original comment is on property taxes. You somehow extrapolated that to local taxes being transferred to billionaires by Donald Trump. Now you're talking about something entirely unrelated. There are tax laws which companies use to lower their tax burden. And good for them. That is being smart. For example if you have a loss-meaning your company loses money that loss can be deferred to future taxes which can negate future taxes being paid. There is absolutely nothing wrong with that. A big business has BIG expenses. Those count as write offs. But lets stay on topic: local property taxes. Local officials in every city determine the tax rate. The President of the United States does not determine local tax rates. Again focus on the subject of my comment. Kind of like in First Grade-you know when we were 5 or 6 years old and had to learn to determine the main point of paragraphs we read. Well the main point of my paragraph is: local property taxes not what Donald Trump or other billionaires pay in taxes.
Property values crashed in 2008 onward. Did tax assessments go down commensurate with the lower values?
In regards to increased taxes on home improvements or additions, you could file for a tax abatement during the construction process. Your taxes won't go up for another 5 years on said improvements. That's how it works in my town anyway
Cool, thanks for sharing!
thanks. my property taxes in NYC is going up in up and nothing change in my house I collect same rent from my tenant ...
Thank you so much for giving me this knowledge and confidence. I feel empowered instead of defeated and resentful!
Wow that’s great. I know this did not happen in NJ. Taxes are a real concern in this corrupt state.
Awesome Natalie, glad to hear you prevailed. That was a good story: you vs the Board. And also thank you both for the info, it was really helpful.
If you buy an old house for say $100k and you spend a lot of money on it and double the value, are you not increasing the value, and thus the property tax (which is based on the value of it)?
Counties will constantly play with appraisal numbers to keep your taxes as inflated as possible, for the highest amount of revenue possible. And it’s a game you play every year. If you miss paying your taxes, fines and liens are placed and then after a time your house is sold off to the highest bidder at auction. It’s maddening. In one year my tax appraisal went up $17,500 out of the blue. They just play with these numbers and watch the money roll in.
So I could go and get taxes lowered since one side of a duplex is completely demolished 😳 things I wished I’d have known. You both are awesome and explained in detail many unanswered questions I had. Thank you
U.S property taxes are crazy. You go to Europe and your property taxes are only $100 a year. Unlike the U.S, property
taxes aren't based on your home market value. Everybody pays the same $100 a year no matter if you live in a shack or a mansion.
How do you go to Supreme court with this case.
Do you need a lawyer
How much is it gonna cost me
It’s 2022 and I need great tips to negotiate in Philly. Thanks for your sound advice!!
@@jamilay6836 I live in Philly you should apply for the homestead exemption
They raised my property tax from 800 a month to 900... I’m pissed
My value doubled after 16yrs, it’s. It the city it’s the appraisal office. Ours doubled almost everyone’s and city say they did t know.
I tried this..but after i rehabbed my property...the county tax appraiser basically told me my taxes were actually too low...and basically i should keep my mouth shut....ooops!
Haha!
I'm getting ready to knock my house down and live in a storage shed I live in San Antonio and my taxes have gone from 3,500 in 2016 to 6,020 in 2020 this is insane the property and the house were purchased about 50 years ago for around $3,000 my house is really old and the value now is 140,000 really my house is worth about $5,000
I was told by them that if they come out and evaluate my home and there's "any" improvements that my taxes could actually go up even more. Maybe it's a scare tactic.
Wow, that's honestly something I've never heard a government employee ever do before! I'm glad it worked out for you and the community.
Shocking, right? Thanks for commenting, Audrey!
Hello, I'm currently appealing my taxes with the board of review and I'm on section 2c...with the Appellant Assessment request, I'm confused about what to put on the Land..building, and total section. Can someone assist me because I only have a few days left. Thank you
Homesteading in TN is the best way to save on property taxes in this state anyway.
BASIC TAX LAW. BASIC BUSINESS LAW. BASIC REAL ESTATE LAW. If do not know about the tax agency in your area of Real Prop your walking on THIN ICE bad surprises may be in for you if you purchase in any area. !!! Be aware... be educated in Law or pay the very expensive PRICE of ignorance ~
I live in Massachusetts, also known as Tax-achusetts! I recently moved one town over as part of downsizing to save money. Well shortly after I bought this house, the town voted in a large property tax increase for everyone. After watching this video, I should probably check the tax values against comparable homes in the area.
Love you two and your channel. Keep up the great work.
P.S. I can just see Natali battling the town in her spin shoes. Let's dance!
Tax-achusetts! That's funny. Thank you for your comment, and good luck with your taxes!
@@RedactedNews Tax achusetts is not funny! The cancer is spreading to low tax states including mine, Texas, and other low tax states, these idiots are bringing their "socialist progressive values" and inflicting them on us and creating the same messed up state they just left thinking that, it will work this time because we can do it better, epic fail
Beware if you have a home you have done a lot of home improvement to please don't do this.
You the man Clayton LOL!By telling everyone the truth about places like California helps solve the problem. Thank you for your efforts.
Thanks, Jonathan!
You people in CA, don't move to Texas, Austin is worse than San Fran, Thanx alot!
Was that 5600 a year or monthly? New to the understanding of taxes and how it works.
Remember guys you will become lucky the wiser, smarter, and the better you are. Make sure you're knowledgeable about this and progressively push down property taxes. Believe it or not a home is a home owned and purchased by your hard earned money.
"Don't settle for any argument that isn't aligned to your liking" says contentment.
This is an everyday war they're not back down from
Super video guys
So glad you liked it!
Learn your rights people. You have both state and federal constitutionally protected rights to own property. Your home is a Non Commercial Property. THE ONLY TAXES THAT CAN BE IMPOSED ARE IMPOST, EXPOST, AND EXCISE. You home is being taxed under excise, which is a privilege tax. Owning a home to provide shelter where no business is being conducted is a right! Not a privilege!
I don't understand why you would be paying the contractor in the purchase price and not a contract for the building and a separate contract for the improvements. Is there a sales tax benefit?
That's how turnkey real estate works. You can learn more here: morrisinvest.com/starthere
Can you "sell" your house to your spouse for super cheap to cause the assessed value to decrease for tax purposes?
Great question! Could my son sell a house to me? He lets me live in it now. I live in it alone, not with him. I'm 64.
I own rentals in Austin and surrounding areas, the tax increases and the mistakes Austin appraisal district make every year are ridiculous, I feel bad for the dupes that don't know how to get things right. This video was no help btw
So if a recession hits and property values drop, do property taxes drop?
NO
No, that's what happens when the "liberal progressives" take control of your state, they always need more $ to solve the problems they cause. I escaped NY 30 years ago and now I'm going to escape Austin TX, getting as bad as San Fran
@@comradenooni9951 stop pretending its just those type of people republicans can be pro tax to.
@@comradenooni9951 Sounds like theuy turn every area they touch into a high tax armpit.
Yes this happened in Detroit back in 2008.
I know it is wrong, but as they are talking, all I can do is stare at Clayton's shirt and think "OMG".
If you bought a plot of land and built a house on it, would you still have to pay property taxes??
Of course.
Is it possible for the tax assessor's office to raise your property tax because it's under an LLC and not a homestead? The previous owner of a house we bought (which she did not live in but inherited upon her mother's death) was paying around $460/year. Then we buy the house under our LLC and we're charged over $1,000 in property taxes. I questioned this and the office tells me that its because it's a rental property and not my homestead. Does this sound correct? Is there anything I can do?
Thanks,
Rosie
Yes, this sounds correct. Many counties offer a "Homestead Credit" for primary residences, which would not apply to investment properties. The fact that the previous owner was receiving the credit without living in the property may have been an oversight, or due to it being an inherited property and the nature in which the deed was transferred.
Also, rental properties are sometimes taxed based on income vs home value. Depending on how much you profit on rent, maybe you can devalue the property and fight the taxes that way. I am not familiar with homestead credits but if it's not a commercial property I don't see how owning it under an LLC should make a difference in value of bricks and dirt
@@SuperStarCustoms that may be a possibility but how would they know how much it's renting for? It blows my mind how they can charge that much more.
Thank you for the great content. Very refreshing to learn about the basics+ of real estate investing without the 'salesy' feel.
Such a nice comment, thank you!
You learned nothing about how to protest your appraisal, let alone the basics of re investing, fail
There are also firms that will handle the tax appeal for you (for a cut of the savings.) Win/Win (if you don't have the time to do it yourself.) Thanks again, to both of you!
Great tip! Thanks, Ken!
Ours just went up 1,500 and we found out our neighbors that have the same size houses are paying half of what we are
Texas has the highest property tax for a house of 400, thousand you pay 15,000 per year that’s insane!
Illinois is the same some county’s pay 18,000 a year on a 3200 square ft home
Great video Natalie and Clayton! Never would have thought of this, but it's so good to know!
Thank you for this great information! Can you do a segment on new construction home taxes for after the first year
Did you ever figure this out?
This would be a tough one in my home state of Hawaii - Democratic Policies. We have a rail under construction paid for by the public that is over budget by $3B. The Mayor is proposing to increase property taxes for high-end investment homes and hotels. They won't do it on the middle-class but will look elsewhere - gas and sales. Hawaii is in the top 3 for the highest cost of living. If the Democrats continue to increase taxes. Sooner or later the working-class will notice these changes causing a protest or worse, riots like Paris. Hawaii has proven that too much Government with a Socialist agenda is far worse than Capitalism and that's why I left home for Vegas.
Hawaii is a beautiful broken island...
Great informative story. Thank you for sharing!
Clayton how do you find renters from so far away?
Hi Louie! We work with property management teams--they screen the tenants.
Yea here in milwuakee property taxes are 2.5
Yuk!
2.7 for us Onondaga County NY. I can't wait to move!!
Our property taxes doubled since we bought a house last year. Our next door neighbor bought his house a week after us. His taxes never went up. The people who bought their house 1 min away never had their taxes go up either. Oh boy, you know I'm furious.
Unless your house is double the value of your neighbors, your house may have been undertaxed and now it caught up when you purchased. At this point you should all be paying about the same. Usually if you're paying more on a new purchase it's cause your neighbors have owned their houses for years and the taxes haven't caught up to them. But in this case your neighbors bought the same time you did so my conclusion, your tax assessor hates you, lol
How about we talk about how property taxes are theft
Great video, thank you!
This is great info. We are saving up to get into the Academy. Having 4 children and being away from home has taken a turn on my spouse.
Thanks, Moe! Looking forward to seeing you inside FFA! We do have a payment plan now, by the way!
Great! I received the email and we booked a call for April 25th.
Thanks 🙏🙏🙏
The Morris Dream Team Natalie and Clayton :)
Or just anyone who owns a home.
My taxes went up $1,300 and we are in the middle of fighting it
Best of luck!
Yes, talk bad about CA, now that Austin is officially a homeless tent city, thanx mayor Adler!!!!!
I feel stupid. Got to go
God owns this world, and youll all be reminded of that soon.
The original idea was to get the citizens of their country down by putting the by using this tax on everything. I just bought a 2011 Suzuki Kizashi from Missouri and was charged 0.06 percent of the value of the car. The people pulled out a big folder and looked up my car. They didn't even see the car they determined what to charge me by a book. And GA just increased the cost of the tax by double this year. This tax was made in the USA 🇺🇸 in the year 1920 when the people were still riding horses 🐎 so the people who had this idea were jackass so you can guess what party they were from. This is ridiculous and needs to be demolished all it does is keeps the working class, poor and the old citizens down.
She doesn't let him talk.. In all the videos I see this..I don't even finish watching the videos because of this.. So annoying .. You guys need to talk before doing the videos, so Natalie doesn't dominate the entire conversation.. Sorry guys but just telling you like it is....
$56,000 is still too much. What in the world?!
Property tax should be abolished.
Geez and im about to buy a house for $180k in a wealthy area. This makes me not want to.
😂❤2024
Defeat SJW Democrats!
Good information to know. Thanks