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+--- Thread: Property tax and inflation. (/showthread.php?tid=23385)
Property tax and inflation. - Amrita - 07-23-2024
Just got property tax bills. And Hawaii has reportedly the lowest property taxes in the nation. Have 2 vacant lots, one in OLE $651.70, and one in HA $427.30. Well our home property (H/O exception and over 80 exemption) at least is a mere $200. HO insurance went from $515 to $1355 this year and food costs, well we all know about that. Just waiting for car insurance bill at beginning of year. Add that to road fees, social security and pension, colas do not hold up after 23 years here in retirement. Could not even dream of moving back to the mainland (moved here from San Diego in 2002) as could not even afford to rent a shack there and they don't allow living in a container in residential areas. When moved here 2 acres OLE were running $15K and got 2 BR house on 2 acres then for $145K.
RE: Property tax and inflation. - achutch3 - 07-23-2024
So you’re saying you own a home and property, and a few other acres of property in other locations? Sounds pretty fortunate to me. You are blessed.
RE: Property tax and inflation. - ChunksterK - 07-23-2024
Amrita, if it's any comfort, my GEICO car insurance went up less than 2%. Did you shop around for HO insurance or just accept a price increase from your carrier? DB dropped us, so we had to find new coverage which was about 50% more - unpleasant, but better than the 160% increase you got. There are options out there, but you have to get multiple quotes.
As for the property taxes, don't worry. Punatang will be along any minute to tell you the Puna real estate market is crashing as we speak.
RE: Property tax and inflation. - HiloJulie - 07-23-2024
Amrita,
Everything ChunksterK said plus - what were your plans for the vacant properties in the first place? Biggest mistake in buying invesment property is not cashing in on that investment at the opportune time.
It may be too late, as the real estate market is doing strange things - but maybe time to sell them?
At any event, good luck!
RE: Property tax and inflation. - terracore - 08-01-2024
Vacant land properties in OLE have roughly tripled in value since 2017. We own 3 side-by-side lots, and I'm also not thrilled about the increase in road fees and property taxes.
An unimproved 2-acre parcel, depending on location and condition, might sell for $70-$75k right now.
Seems like a good investment to me.
My wife (realtor) can offer a free market analysis if you're interested.
RE: Property tax and inflation. - Durian Fiend - 08-06-2024
Real estate values and their associated taxes have gone up everywhere desirable in the US. Most people pay more than you if that's any consolation.
Over 80 years of age exemption? I didn't know that. Perhaps it's time to sell those vacant properties or transfer them to your heirs.
RE: Property tax and inflation. - kalakoa - 08-06-2024
Taxes will always go up. Better question: what are you getting for the taxes paid?
RE: Property tax and inflation. - HereOnThePrimalEdge - 08-06-2024
what are you getting for the taxes paid?
I once had a county worker in the real estate tax department begrudgingly “help” me with a question. She looked up when I approached the front counter, sighed loudly, rose from her desk, then shuffled her shoes loudly across the floor as walked 15 feet over to where I was standing.
After taking up a minute or two of her time I asked her, “by the way, what do my property taxes pay for?” In an exasperated tone she rattled off 5 or 10 things. I replied “oh, I don’t use any of that.”
The implication being that her assistance was all I received for a year’s worth of tax payments. But she either didn’t get it, or didn’t care. Or both.
RE: Property tax and inflation. - achutch3 - 08-06-2024
Hawai’i still has some of the lowest property taxes on your primary residence but it appears anyone with multiple homes or properties are gunna start payin for it.
RE: Property tax and inflation. - ironyak - 08-07-2024
HereOnThePrimalEdge - I asked her, “by the way, what do my property taxes pay for?” In an exasperated tone she rattled off 5 or 10 things. I replied “oh, I don’t use any of that.”
Out of curiosity, do you happen to remember any of the items mentioned? I know hurr durr "taxes bad", but I have a hard time believing you don't ever use any county roads, parks, or public safety services. (oh wait, you're in that HPP hellhole we keep hearing about here - maybe you don't actually get any County services there ;)
achutch3 - Hawai’i still has some of the lowest property taxes on your primary residence but it appears anyone with multiple homes or properties are gunna start payin for it.
As Hawai'i County actually dropped their Homeowner and Affordable Renting Housing property tax rates, and didn't change any of the others between 2023 and 2024, the increase in property tax this year seems to be from an increase in the value of the assets. It sounds like OP owns multiple investment properties that have apparently increased in value ~4x since purchase - congrats! I guess if you want lower taxes you could root for a crash in the real-estate market so your assessment comps are lower next time? Won't some one think of the landed gentry's taxes and bring on the market meltdown? (no, seriously, young people would actually like to buy a house once in their lifetime)
Also, Hawai'i will move from the highest to the 4th lowest tax burden after the recent historic tax cuts finish going into effect. If the taxes are still too much, there's always Alaska, New Hampshire, and Wyoming! (let us know how their County beach parks compare - if you have ever used ours of course ;)