Quote:
|
Originally Posted by fatlazyless
My two-bed Meredith Winnipesaukee waterfront kozy-kottage has gone from $2800. to 10,000./year prop taxes in the last three years while the assessmment has gone from $240k to 801k. Thanks in part to our NH Advantage tax! So, who has the advantage?
|
If your property really has increased by $561k and your taxes have increased by $7.2k then you are in a good position. $561k / $7.2k = 80 years of paying the taxes from the increase in equity. And that is ignoring the time value of money which would make things a lot better (160+ years perhaps?)
Put another way the newfound $561k of equity will continue to grow. If your property value continues to increase at more than 1.3% you will always be ahead of the game ( $7.2k / $561k = 1.3%, so all you need is a 1.3% return on the $561k a year to pay the increase in taxes).
And of course it's mostly the land value that drove your increase. It is amazing what waterfront land is worth today.