1072 replies to this topic

[Ismo07]

That's not quite right.

 

To access the funds, you need to have the necessary income to pay for a loan against the equity. The bank won't just hand you $250,000, but a lot of people think if you have $500k in equity, the bank will hand out cash against it.

 

There are private lenders who will, but at very high interest rates. There is no free ride, anywhere. The Internet gets these sorts of things very wrong, often.

 

Reverse mortgage?  At the end of the day if a couple hundred is going to sting there might have to be some choices made.  Are they able to defer taxes yet?

[Victoria Watcher]

But you don’t need $250,000 to pay property tax. I think you will find somebody to lend you 20% of your equity at a pretty low rate.

[Mike K.]

But you don’t need $250,000 to pay property tax. I think you will find somebody to lend you 20% of your equity at a pretty low rate.

The common thread is people are using HELOCs to buy real-estate, and getting rich.

[Nparker]

But you don’t need $250,000 to pay property tax. I think you will find somebody to lend you 20% of your equity at a pretty low rate.

Something is terribly wrong with our system when owners are forced to borrow against their equity to pay property taxes.

[Ismo07]

Something is terribly wrong with our system when owners are forced to borrow against their equity to pay property taxes.

 

If someone is dead broke with no income but has $800k available in their house.  It might be their only option.  It would stink for sure.  I'm not sure the system would be to blame for that for that %.

[lanforod]

That's more of an unusual/extreme case, I'd think. Like, the household income has drastically dropped for some reason, and any safety net of funds has been used.

[spanky123]

Reverse mortgage?  At the end of the day if a couple hundred is going to sting there might have to be some choices made.  Are they able to defer taxes yet?

 

If you have someone on title 55+ you can defer taxes at the BoC rate minus at least 2%. 

[lanforod]

Yep, and I'd suggest doing that regardless I think, unless you're so 'debt' adverse it'd affect your mental health.

[Ismo07]

If you have someone on title 55+ you can defer taxes at the BoC rate minus at least 2%. 

 

Yeah there are options to use that equity to help.  It's not ideal but...

[Victoria Watcher]

There are municipal services to be paid for. Residents must pay it.

You can have arguments about the amount or the collection systems, but cities must pay for the stuff they do.

Edited by Victoria Watcher, 02 February 2024 - 10:33 AM.

[Nparker]

....unless you're so 'debt' adverse it'd affect your mental health.

That's kind of how I feel about debt, but considering how little I get for all the property tax I am forced to pay, I suppose I should consider deferment.

[Nparker]

There are municipal services to be paid for. Residents must pay it

Residents should have a greater say in how that money is both collected and spent. Owners pay a disproportionate share of property taxes but likely make no more use of municipal services than renters and have no recourse to have their taxes "capped".

[Victoria Watcher]

That's kind of how I feel about debt, but considering how little I get for all the property tax I am forced to pay, I suppose I should consider deferment.

Or move to a jurisdiction that demands less tax.

[Victoria Watcher]

Residents should have a greater say in how that money is both collected and spent. Owners pay a disproportionate share of property taxes but likely make no more use of municipal services than renters and have no recourse to have their taxes "capped".

I would guess. For example the vast majority of individuals that VicPD deal with are not much property tax payers. But they take up 30% of the municipal budget.

Edited by Victoria Watcher, 02 February 2024 - 10:44 AM.

[Nparker]

Is there a jurisdiction where renters pay the same per capita portion of municipal taxes as property owners?

[Ismo07]

Is there a jurisdiction where renters pay the same per capita portion of municipal taxes as property owners?

 

I think every jurisdiction renters pay owners property taxes, mortgage and some other expenses depending.

[Victoria Watcher]

Is there a jurisdiction where renters pay the same per capita portion of municipal taxes as property owners?

Market renters pay property taxes. The 2,000 CoV renters that just pay $375 of their welfare cheque to housing are the biggest drain on municipal services.

Edited by Victoria Watcher, 02 February 2024 - 11:02 AM.

[lanforod]

Market renters pay property taxes. The 2,000 CoV renters that just pay $375 of their welfare cheque to housing are the biggest drain on municipal services.

 

Indirectly, and property owners are shouldering more and more of it as rental increases are capped while property taxes are not. You already know that.

[Ismo07]

Indirectly, and property owners are shouldering more and more of it as rental increases are capped while property taxes are not. You already know that.

 

Yes but they catch up when renters leave.  I rented a few properties for a while, I never even raised rents on people annually.  When they left you bump it up.  If your lucky to have a great long-term tenant it's worth it.  I would say this day and age as rates increased that would have been way more difficult to maintain rents but you are gaining in other ways as an owner.

[Victoria Watcher]

Indirectly, and property owners are shouldering more and more of it as rental increases are capped while property taxes are not. You already know that.

Lisa Helps welcomed 2000 miscreants to town.