Author Topic: Building Wealth One House at a Time.  (Read 83308 times)

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Offline Panda

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Re: Building Wealth One House at a Time.
« Reply #405 on: June 10, 2018, 03:51:53 PM »
Thanks for teaching me something new as I thought that MR was calculated by the % of the property price vs a fixed bond amount. When I was looking to buy a Manzanita home in Portola Springs between 2009 - 2010, I remember that the property tax + MR was right at 1.8 - 1.9% of the purchase price. Are you allowed to write off your MR taxes just like you would with your property taxes?

MR is a fixed bond amount and not a % of the property price.  It should really be calculated separated from property tax as the "effective tax rate" will vary depending on your purchase price.  The MR for Casalon tract was $2078.  For the later phases, this would translate into an effective property tax rate of 1.4%.  As the homes appreciate and the MR bonds get paid off, the ROI starts to look much better.
James Park, MBA
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Direct: (678) 865-6250
Email: jpark@realwealthmanagement.com

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Offline irvinehomeowner

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Re: Building Wealth One House at a Time.
« Reply #406 on: June 10, 2018, 06:28:12 PM »
We’re dicussed the writeoff of MRs quite a bit here and I believe you can based on an IRS letter because CA doesn’t provide sufficient breakout on what is deductible.

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Offline eyephone

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Re: Building Wealth One House at a Time.
« Reply #407 on: June 10, 2018, 06:49:05 PM »
It doesn’t really matter. There’s a $10k SALT limit.


Thanks for teaching me something new as I thought that MR was calculated by the % of the property price vs a fixed bond amount. When I was looking to buy a Manzanita home in Portola Springs between 2009 - 2010, I remember that the property tax + MR was right at 1.8 - 1.9% of the purchase price. Are you allowed to write off your MR taxes just like you would with your property taxes?

MR is a fixed bond amount and not a % of the property price.  It should really be calculated separated from property tax as the "effective tax rate" will vary depending on your purchase price.  The MR for Casalon tract was $2078.  For the later phases, this would translate into an effective property tax rate of 1.4%.  As the homes appreciate and the MR bonds get paid off, the ROI starts to look much better.

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Offline Panda

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Re: Building Wealth One House at a Time.
« Reply #408 on: June 10, 2018, 07:39:26 PM »
Thanks for the reminding me of the new SALT Limit. Here in Forsyth County one needs to own home over a $1 Million Dollars to hit the cap of the SALT limit.

It doesn’t really matter. There’s a $10k SALT limit.


Thanks for teaching me something new as I thought that MR was calculated by the % of the property price vs a fixed bond amount. When I was looking to buy a Manzanita home in Portola Springs between 2009 - 2010, I remember that the property tax + MR was right at 1.8 - 1.9% of the purchase price. Are you allowed to write off your MR taxes just like you would with your property taxes?

MR is a fixed bond amount and not a % of the property price.  It should really be calculated separated from property tax as the "effective tax rate" will vary depending on your purchase price.  The MR for Casalon tract was $2078.  For the later phases, this would translate into an effective property tax rate of 1.4%.  As the homes appreciate and the MR bonds get paid off, the ROI starts to look much better.
James Park, MBA
Real Estate Broker and Loan Officer
CalBRE# 01894781, NMLS License # 1572291
Direct: (678) 865-6250
Email: jpark@realwealthmanagement.com

http://www.biggerpockets.com/users/Panda
http://www.johnscreekrealtypartners.com

Instagram: 
@JohnsCreekRealtyPartners | @RealWealthManagement

Offline Compressed-Village

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Re: Building Wealth One House at a Time.
« Reply #409 on: June 10, 2018, 08:32:52 PM »
We’re dicussed the writeoff of MRs quite a bit here and I believe you can based on an IRS letter because CA doesn’t provide sufficient breakout on what is deductible.

Right, so for the past 20 + years, I've always include the full amount I received from OC Tax office for property tax deduction.

Going forward it is limit with the 10K max annual, which will stings somewhat, this only applies to your primary ownership. However, I've got rentals and the rental units is considered unlimited for tax deduction.

Offline woodburyowner

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Re: Building Wealth One House at a Time.
« Reply #410 on: June 10, 2018, 09:38:48 PM »
Woodbury, at the other end of the spectrum, there are several homes in south Forsyth where the market value are trading around $780k and taxes are around $6000. I guess 1% property tax would be a good rule of thumb in Forsyth County. As Forsyth County's population continues to grow, I would imagine that property taxes will rise over time as well. $256k would be considered the entry price point into Forsyth County, as the lowest entry new construction is now starting in the mid $260s. The attractiveness of owning property in this County is due to low property taxes, good schools, and being known as the wealthiest and fastest growing County in the state.

Forsyth County property taxes are probably similar to owning an older home built in the 80s in Turtle Rock and Woodbridge where the effective tax rate is just 1% without Mello Roos.

Forsyth County's effective tax rate is about half that of Buckhead at 0.9% of the home value. 

I just looked at a random property in Forsyth County and see the county "appraised value" of $256k with a property tax bill of $2844.  Wouldn't this make the property tax 1.1%?

I guess the question really is how the county determines FMV of a property.  It sounds like you are saying some properties have a higher market value than what the county calculates the FMV to be.  Does Forsyth have something similar to CA Prop 13 where the assessed property value can only go up max 2% a year?  How would the county FMV be that much lower than true market value?

Offline Compressed-Village

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Re: Building Wealth One House at a Time.
« Reply #411 on: June 10, 2018, 10:00:02 PM »
Woodbury, at the other end of the spectrum, there are several homes in south Forsyth where the market value are trading around $780k and taxes are around $6000. I guess 1% property tax would be a good rule of thumb in Forsyth County. As Forsyth County's population continues to grow, I would imagine that property taxes will rise over time as well. $256k would be considered the entry price point into Forsyth County, as the lowest entry new construction is now starting in the mid $260s. The attractiveness of owning property in this County is due to low property taxes, good schools, and being known as the wealthiest and fastest growing County in the state.

Forsyth County property taxes are probably similar to owning an older home built in the 80s in Turtle Rock and Woodbridge where the effective tax rate is just 1% without Mello Roos.

Forsyth County's effective tax rate is about half that of Buckhead at 0.9% of the home value. 

I just looked at a random property in Forsyth County and see the county "appraised value" of $256k with a property tax bill of $2844.  Wouldn't this make the property tax 1.1%?

I understand now, so the FMV in tax is what I saw, even though the house bought at 215K FMV overtimes tax is risen to close to 6K. GA does not have prop 13. In this example, if one would to purchase it today, what would the total tax be value at?

2395 Bronze Ct
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$635,000
Price
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Beds
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Baths
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Offline eyephone

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Re: Building Wealth One House at a Time.
« Reply #412 on: June 10, 2018, 10:12:58 PM »
We’re dicussed the writeoff of MRs quite a bit here and I believe you can based on an IRS letter because CA doesn’t provide sufficient breakout on what is deductible.

Going forward it is limit with the 10K max annual, which will stings somewhat, this only applies to your primary ownership.

It’s going to sting like a stingray.

Offline woodburyowner

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Re: Building Wealth One House at a Time.
« Reply #413 on: June 13, 2018, 09:10:03 AM »
Woodbury, at the other end of the spectrum, there are several homes in south Forsyth where the market value are trading around $780k and taxes are around $6000. I guess 1% property tax would be a good rule of thumb in Forsyth County. As Forsyth County's population continues to grow, I would imagine that property taxes will rise over time as well. $256k would be considered the entry price point into Forsyth County, as the lowest entry new construction is now starting in the mid $260s. The attractiveness of owning property in this County is due to low property taxes, good schools, and being known as the wealthiest and fastest growing County in the state.

Forsyth County property taxes are probably similar to owning an older home built in the 80s in Turtle Rock and Woodbridge where the effective tax rate is just 1% without Mello Roos.

Forsyth County's effective tax rate is about half that of Buckhead at 0.9% of the home value. 

I just looked at a random property in Forsyth County and see the county "appraised value" of $256k with a property tax bill of $2844.  Wouldn't this make the property tax 1.1%?

I understand now, so the FMV in tax is what I saw, even though the house bought at 215K FMV overtimes tax is risen to close to 6K. GA does not have prop 13. In this example, if one would to purchase it today, what would the total tax be value at?

2395 Bronze Ct
Cumming, GA 30041
$635,000
Price
6
Beds
5
Baths
6,299 Sq. Ft.
$101 / Sq. Ft.


1.1%.

Offline Panda

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Re: Building Wealth One House at a Time.
« Reply #414 on: June 13, 2018, 11:28:26 AM »

Year over year from March 2017 - March 2018, the Los Angeles index has appreciated 8.1% whereas the Atlanta market index has appreciated 6.2%. The Los Angeles index is now 2.3% above the last peak of Sept 2006.

An outlier to note is Nashville Tennessee. Appreciation year over year is 8.8% and their real estate prices are above 40% from its last peak. Atlanta is 4.9% above last peak, and Los Angeles is above by 2.3%.





« Last Edit: June 13, 2018, 03:49:50 PM by Panda »
James Park, MBA
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Offline Panda

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Re: Building Wealth One House at a Time.
« Reply #415 on: June 19, 2018, 08:54:35 AM »
I like to compare the appreciation performance of the LA and the Atlanta Market. From 2012 - 2018, the two markets have performed similarly to one another. 2016, Atlanta's appreciation was slightly better than LA, and in 2017, LA's appreciation was slightly better than Atlanta. In 2018, the performance is the same at 1.7% appreciation from Jan 2018 to March 2018.

Atlanta is now 4.9% above the previous peak and Los Angeles is now 2.3% above the previous peak.




« Last Edit: June 19, 2018, 09:03:52 AM by Panda »
James Park, MBA
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Offline Panda

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Re: Building Wealth One House at a Time.
« Reply #416 on: June 19, 2018, 10:41:02 AM »
Top Ten School Ranking in Georgia: Elementary, Middle, High School. Highlighted green are the school clusters of my primary residence. High schools ranked among (420) in Georiga, Middle Schools ranked among (539), and Elementary Schools ranked among (1205)

Source: www.schooldigger.com

James Park, MBA
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Offline Panda

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Re: Building Wealth One House at a Time.
« Reply #417 on: June 19, 2018, 10:54:31 AM »
Demographics Shift in last 10 years: Johns Creek Elementary, Riverwatch Middle, and Lambert High School.

Source: www.schooldigger.com



James Park, MBA
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Offline irvinehomeowner

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Re: Building Wealth One House at a Time.
« Reply #418 on: June 19, 2018, 11:42:37 AM »
Since we all know real estate is cyclical... when do you think the next dip in Johns Creek will be?

And how are you protecting your assets?
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Re: Building Wealth One House at a Time.
« Reply #419 on: June 19, 2018, 11:56:43 AM »
IHO, I see a lot of similarities to the Nashville housing market here in Atlanta, except just at a much larger scale as we are the largest city in the south. The inventory levels in Metro Atlanta are extremely low at this time hovering around the 20k levels. You have to also look at the affordability scale between the median home price / median house hold income. Irvine is between 7-8, Bay Area is between 13-14, and the metro Atlanta is around 3-4. Think of this is a P/E ratio for real estate. I am extremely bullish of the future of the Atlanta market. I believe the best is yet to come in the future vs behind us.

James Park, MBA
Real Estate Broker and Loan Officer
CalBRE# 01894781, NMLS License # 1572291
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Email: jpark@realwealthmanagement.com

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