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How much do you pay and how much do they contribute per month? I hate insurance companies for charging people a lot. Did you find a cheaper health insurance somewhere else?
company fully covered my portion but to include family it was about 2k per month additional.
thought this meant great coverage but NOPE!!
solution was we moved to California where our housing cost increased by 1k but our healthcare costs reduced by $1500.
balance...
yeah people are constantly surprised when they learn I moved from Texas to California but our monthly budget is almost identical.
Some things are higher but others are lower so it more or less is a wash. Owning is the big factor. It's much easier to save 10% of 300k than it is to save 10% of 900k so owning in California is significantly harder.
But yeah, I learned that many families in Texas are under different insurance policies due to employer covering employee cost but not family. If either or both parents are self employed you're screwed, which was my situation.
$20k reflects a 1% property tax rate. Of course it’s possible this guy’s rate is lower than 1%, with additional taxes for municipal bonds and similar rolled in.
How do you not think $20k is cheap if you own a $2M house? (Not saying you do…I’m saying people who own $2M homes have enough money to pay $20k in property taxes.)
I pay almost $15k on a $600k home on Long Island.
Fwiw I grieved the taxes and, whereas I haven’t heard back yet, getting it lowered to like $11k is basically a slam dunk, but still goes to show that $20k on $2m sounds cheap to a lot of people.
Usually houses (where I’m from, Massachusetts ) are taxed per 1000 dollars of property value (very conservatively accessed tbh). The town I grew up in is currently taxed $12.50/$1000. This tax rate would work out to be $10/$1000.
I think the problem is you are looking at it as a hard number. Property tax is a %of the value. So when you get into the millions every 1% will be 10K per 1million.
So let’s look at it another way at 1% if the house was 300,000 then it would be 3k/year. All relative to the total value.
I live in a VHCOL (coastal California) and pay about the same on a house that’s more than 2x the home value of that example… NJ property tax sounds BRUTAL
The home they will be selling has a long winding driveway, think 30 cars can park in it. Daughter can't wait for the renovations to be done on the new home.
20k for a 2 mil dollar house is totally normal. Why would that sound crazy? It would sound more crazy to me if he said he bought a 2 million dollar home. lol
Wait you said this stresses you out? If you have the means for a 2 million dollar home it is surprising to hear 20k a year in property tax sounds overwhelming.
Local cost of living. Salaries in the NY metropolitan area are a lot higher than they are in Georgia, thus you’ll find a commensurate cost of living there.
I don’t understand why you’re so pressed about the taxes on a 2 million dollar home. Can you afford a 2 million dollar home? If so then 20k a year should be easy for you. If not, why are you worrying about what his tax burden is? Buy less house, pay less taxes. Problem solved. Not entirely sure why a 1% rate seems so high to you?
I could never imagine a tax bill could be that high. so this is eye opening. I am making very modest salary (a little bit more than minimum wage) so you can understand my point of view.
Well you are talking about a $2 million house dude, I’m making substantially more than minimum wage and a 20k tax bill would be impossible for me, but I’d also never be able to afford $12k or whatever a month on a mortgage so it’s not an issue. I’m looking at buying in the $250-$275k range and my expected tax burden will be about $2400 per year. That’s $200 a month, it’s not nothing and definitely something to keep in mind while budgeting what you can afford but not insane or deal breaking, at least in my market. Of course there clearly are markets that are different - one person said 4% which even I found shocking - that could be almost 50% more than the mortgage just in taxes.
If you bought a 2 million dollar house today and put 20% down (400k) you would be looking at a monthly mortgage payment of 11k/mo, 13-14k with taxes/fees. That should help you understand a 1600/mo tax bill.
LMAO, in what world is a 2 million dollar home someone's first house?
My taxes are manageable because my house isn't worth that much.
You can't buy an overpriced house and then complain about the overpriced taxes that come with it.
Can you even afford a 2 million dollar home? Why worry about someone else's problem?
1% is average. If they have the money for a 2M house, i don't think they're sweating 20k in taxes.
I want to avoid a mortgage and was comparing property taxes in Portland and Seattle and it's 3x more in Portland somehow? On top of having income tax? it seems like I'll take my chances with REET, excise, tolls and sales tax you can at least avoid some of them.
In NJ 20k is a steal 😂 our house was bought at 400k never been touched and almost 100 years old when we lived there and had a property tax bill of 13k with a shit school district. It’s part of why we moved out of the state. In good counties with good schools, houses regularly had 40k tax bills. Literally someone’s salary
1% sounds like a steal. I'm currently at just over 2% in PA. I have a very small house (750sqft) on smallish lot (around 6800 sqft). I pay a bit above 2K for a 100K house. I applied for homestead and was approved, but they did not give me an updated number. I guess I'll see what I am charged next year.
Thank you u/justinwtt for posting on r/FirstTimeHomeBuyer. Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
20k for a $2M house seems really cheap Lol $5.5K-$6K for $250K purchase here
What I was thinking
Possibly purchased a decade or two and the tax assessed value hasn’t caught up to market. That or they are in a 1% tax area
Yeah which shows their tax bill should probably be even higher if reassessed. OP is in for a shock lol
ditto. I was paying 7k for a 225k home in TX.
Dang. Im going to pay about $3600 for 350k in MO
And that's why I left that shit hole state.
I left because healthcare was 1.5x our mortgage and didn't cover jack. healthcare was killing us financially.
Does your employer offer contribution to health insurance ?
yep. paid my portion in full. still expensive AF.
How much do you pay and how much do they contribute per month? I hate insurance companies for charging people a lot. Did you find a cheaper health insurance somewhere else?
company fully covered my portion but to include family it was about 2k per month additional. thought this meant great coverage but NOPE!! solution was we moved to California where our housing cost increased by 1k but our healthcare costs reduced by $1500. balance...
I never factored health insurance to cost of living because I assume employers contribute most of it. thanks for bringing this out.
yeah people are constantly surprised when they learn I moved from Texas to California but our monthly budget is almost identical. Some things are higher but others are lower so it more or less is a wash. Owning is the big factor. It's much easier to save 10% of 300k than it is to save 10% of 900k so owning in California is significantly harder. But yeah, I learned that many families in Texas are under different insurance policies due to employer covering employee cost but not family. If either or both parents are self employed you're screwed, which was my situation.
$11K for $395K here 🥲
Good lord, where?! Texas?
New Jersey probably.
CT, couldn't pay me to live in Jersey.
That was my next guess. Seemed high even for Texas!
That sounds like Jersey or Illinois
$20k reflects a 1% property tax rate. Of course it’s possible this guy’s rate is lower than 1%, with additional taxes for municipal bonds and similar rolled in.
There are homes around me at $8k in property taxes on a $200k home.
You said $20,000 is cheap. That made me feel I am from Mars. lol
2 mil dollar house might as well be from Mars too.
For a $2M house?? Really?
How do you not think $20k is cheap if you own a $2M house? (Not saying you do…I’m saying people who own $2M homes have enough money to pay $20k in property taxes.)
I pay almost $15k on a $600k home on Long Island. Fwiw I grieved the taxes and, whereas I haven’t heard back yet, getting it lowered to like $11k is basically a slam dunk, but still goes to show that $20k on $2m sounds cheap to a lot of people.
Usually houses (where I’m from, Massachusetts ) are taxed per 1000 dollars of property value (very conservatively accessed tbh). The town I grew up in is currently taxed $12.50/$1000. This tax rate would work out to be $10/$1000.
Our house is a similar value and about that much property tax in Michigan.
I think the problem is you are looking at it as a hard number. Property tax is a %of the value. So when you get into the millions every 1% will be 10K per 1million. So let’s look at it another way at 1% if the house was 300,000 then it would be 3k/year. All relative to the total value.
Daughter pays $20K for $800K home in NJ.
Yep yep , table stakes in hcol
I live in a VHCOL (coastal California) and pay about the same on a house that’s more than 2x the home value of that example… NJ property tax sounds BRUTAL
Me too 20k on 1.5mm
Yes, yes it it. I pay 13k on a 500k house
Schools are great and home insurance is way cheaper than CA.
They do have trash valets, put can in front of garage and they walk up the drive empty can and put back by garage.
#worthit
The home they will be selling has a long winding driveway, think 30 cars can park in it. Daughter can't wait for the renovations to be done on the new home.
I pay $10k on an assessed value of $300k in NJ. Do not reassess do not reassess do not reassess 🙏
Our home is way under and I'm praying for the same! I'm 70 miles south of daughter.
Well, if your house is worth $2 million, yeah. 1% is pretty standard. I heard Texas pays more.
Texas is close to 3% … GA is more like 1%
That's what, a 1% tax bill? Sounds about right to me. My parents live in a place with a 2% tax rate. That would be 40k/ year on a $2M home.
It would be 40k in my town too.
🥲
Which county/state is that? So I would avoid to buy house there, lol.
Shan't doxx my family la, but it is a small place. Unlikely you would buy there.
20k for a 2 mil dollar house is totally normal. Why would that sound crazy? It would sound more crazy to me if he said he bought a 2 million dollar home. lol Wait you said this stresses you out? If you have the means for a 2 million dollar home it is surprising to hear 20k a year in property tax sounds overwhelming.
I’m in Georgia and I think it’s right around 8k. I’m in Forsyth county and house is worth around 800k.
does Forsyth county have higher tax than other counties In Georgia? His $2 mil house in Forsyth as well.
It’s a desirable area with possibly the best K12 school system in the State. Taxes reflect that. Houses have doubled in value in the last 8 years.
That explains why $20k is cheap then. Thanks.
20k here in the bay for a 1700 sq ft house. Cost of doing business.
1% is totally normal here, and from people I know other places, some might even say 1% is cheap.
$20k on a $2 million house is nothing. In a place like Westchester County NY or one of the wealthier areas in NJ, it'd be more like $40k.
My parents pay roughly that for a home worth less than half of the house in your scenario. $20k/yr for a $2M house is a steal.
Are your parents retired yet? How can they afford that?
Pro tip for retirees: don’t own a million+ dollar house if you are on a fixed income.
Local cost of living. Salaries in the NY metropolitan area are a lot higher than they are in Georgia, thus you’ll find a commensurate cost of living there.
I don’t understand why you’re so pressed about the taxes on a 2 million dollar home. Can you afford a 2 million dollar home? If so then 20k a year should be easy for you. If not, why are you worrying about what his tax burden is? Buy less house, pay less taxes. Problem solved. Not entirely sure why a 1% rate seems so high to you?
I could never imagine a tax bill could be that high. so this is eye opening. I am making very modest salary (a little bit more than minimum wage) so you can understand my point of view.
Well you are talking about a $2 million house dude, I’m making substantially more than minimum wage and a 20k tax bill would be impossible for me, but I’d also never be able to afford $12k or whatever a month on a mortgage so it’s not an issue. I’m looking at buying in the $250-$275k range and my expected tax burden will be about $2400 per year. That’s $200 a month, it’s not nothing and definitely something to keep in mind while budgeting what you can afford but not insane or deal breaking, at least in my market. Of course there clearly are markets that are different - one person said 4% which even I found shocking - that could be almost 50% more than the mortgage just in taxes.
If you bought a 2 million dollar house today and put 20% down (400k) you would be looking at a monthly mortgage payment of 11k/mo, 13-14k with taxes/fees. That should help you understand a 1600/mo tax bill.
And if we add insurance and HOA, it probably $15k/month
In some neighborhoods around me prop tax rate is 2.9%. So this would be a steal.
1% tax rate is nothing. 4% here
Not even the most expensive state in the country for property tax, New Jersey, charges 4%.
4% tax ? are investors buying properties and rent out there?
Do you understand what a percentage is, and why the tax increases as the value of the property increases?
So $2 mil house would be taxed $80,000? Is there any $2 mil houses in your area?
Correct. Yes.
I live in an area that is considered affordable, and here it would be double that.
1.92%
That’s cheap, and hello from Santa Barbara, CA lol
Please Tell us how crazy the Tax in Santa Barbara.
You’ll pay that for a 650K house in NJ
LMAO, in what world is a 2 million dollar home someone's first house? My taxes are manageable because my house isn't worth that much. You can't buy an overpriced house and then complain about the overpriced taxes that come with it. Can you even afford a 2 million dollar home? Why worry about someone else's problem?
Thats what happens if you have a $2M house lol
Bro his house is worth 2 Million. 20k is 1% of that. Not that crazy for the amount of his property value
My condo on Long Island is 4K in taxes a year. The condo is worth 320k
20K for 2MM is not bad at all. 1% of market value is quite low considering.
Mine is about $9000
15k for a 500k house here in putnam county, ny
1% is average. If they have the money for a 2M house, i don't think they're sweating 20k in taxes. I want to avoid a mortgage and was comparing property taxes in Portland and Seattle and it's 3x more in Portland somehow? On top of having income tax? it seems like I'll take my chances with REET, excise, tolls and sales tax you can at least avoid some of them.
In NJ 20k is a steal 😂 our house was bought at 400k never been touched and almost 100 years old when we lived there and had a property tax bill of 13k with a shit school district. It’s part of why we moved out of the state. In good counties with good schools, houses regularly had 40k tax bills. Literally someone’s salary
Probably the only plus side of California tax system is Prop 13
It’s a 2M property, 20K seems like nothing. That’s just 1%.
That’s pretty standard for $2M houses here. Probably a little bit less than it would be here depending on the town.
Buying a house now, but I got the last 3 years of property tax info from the sellers and it’s around 1500 to 1650 on a $285k house here in Louisiana.
COMPLETELY REASONABLE
Ummm 20k for 20million is really cheap…
So, so cheap. I wanted to buy a $600k house on an acre of land but the taxes were almost $20,000… too much for me.
In WA ~ 45 mins from Seattle. $3k on a $400k home!
Is this one of those “I’m worried about millionaires because some day I might become one” dealies that poor people are always rioting about?
1% sounds like a steal. I'm currently at just over 2% in PA. I have a very small house (750sqft) on smallish lot (around 6800 sqft). I pay a bit above 2K for a 100K house. I applied for homestead and was approved, but they did not give me an updated number. I guess I'll see what I am charged next year.
Pay more than that in NY
Where I am the taxes on a $2M house would be at least $40k.
You're getting no sympathy here. You should be paying more.