Live in USA, different taxes...

[Gaël]

Hi everyone,

I have some questions about the life in USA,

When you buy a home, what are the different taxes?
Per month ? Per year ?

For exemple, you can have a year taxe, the cost depends of the area of your property or you can have an other taxe because you are the owner of the property but if you rent the property you haven't this taxe.

It depends of the state ? For example, I have a dream, it's to live in Arizona, near a lake or Colorado river, or around Flagstaff / Phoenix... I love many area in this state.

I remember, 10/15 years ago, I had a dream : be the owner of an Airstream... and the last yaer, I materialized my dream...

Why not a pretty house in AZ in a few years ?

Thanks a lot or your answers...

Cheers,

[moosetags]

Hi Gaël,

The property taxes in the United States are levied by local (county/city) governments. They vary widely and are usually based upon the value of the property. For instance, in Walton County, Florida, a house valued at $150,000 would have property taxes of approximately $1,500 per year.

Brian

[A W Warn]

There is federal (US government) tax on income, but no federal tax on property.
Where I live there is a state tax on income. But, there is no state property tax.
Where I live there is a county tax on property(both real estate and personal).
There is also an additional city tax on property, if the property is within the city boundaries.
Each vehicle, boat, airplane, etc... is taxed at both city and county level. There are license fees in addition to tax. Vehicle licenses cannot be purchased until proof of insurance and payment of tax is provided to the licensing authority.
There are various other taxes, like sales tax on purchases, road tax on purchases of vehicles, road fuel tax on gasoline or diesel, telephone use tax, etc ....

There are also various income and property taxes on a business' property and business' profits!

State, county, and city taxes vary by location. Federal tax is the same everywhere in the US.

[robert claus]

As you can see, the tax situation varies from State to State, and county to county, down to city by city. You'll have to narrow down your search to an area, then research the taxes for that area. For an idea of property taxes in any area, try using Zillow.com where you can find the tax history with every real estate listing.
Good luck with your search!

[Gaël]

Thanks to you, thanks for your answers,

As I can see, and as you told me, the taxes varies from where you live, I didn't think that...

Yes, I know Zilllow, this afternoon, I looked during 2 hours some properties for sale.

But I don't understand one thing...

I agree to find properties for sale for $150.000 and more, but how is it possible to find properties at $30.000... ? Nobody wishes to live here ? Perhaps it's too far from main city ?

[martin300662]

You had one comment about paying taxes when renting out the property....I know in Europe the cost of local tax passes to the occupant (I own two houses in the UK and the people that rent those houses pay the tax) whereas in the US the cost of rent tends to include the cost of the local tax as that is owed by the property owner.

Another thing that is different in the US is what happens if you have a loan secured against the property; it is common for the payment made to a mortgage lender to include the local tax and also insurance for the house, and then the mortgage lender pays the tax and insurance.

If you are seeing property that appears to be offered for sale at less than expected it is also possible that there are additional charges against the property - as an example we were looking to buy a second (holiday) home in Florida and one particular complex had properties that were for sale for very little cost, but when I contact the Realtor (the real estate agent responsible for selling) there were 'resort charges' unpaid for several years which effectively passed to the new owner and so devalued the property - this is quite common in vacation locations.

[Aage]

If you are referring to your results from an online source, I would forget that and get a realtor.

There are many things about a house that those listings do not show, and you can only find them out by using someone with "feet on the ground" in the area in which you are interested. If there is a toxic dump next door, (s)he should know about it.

If realtors' fees in the US are anything like here (in Canada), you will pay a percentage to the realtor when you buy no matter how you buy it, so make use of their service.

But here's an interesting fact: I believe that US citizens can deduct home mortgage interest against their taxable income. No idea how citizens of other countries who own US real property make out on that though.

Also, capital gains are, for the most part, taxable. Again, no idea of what foreign owners pay.

If you are serious about this, in your place I would take a week or more to go there to meet with a lawyer and find a good realtor in the area. That's the only way to get the real information you will need to make an informed decision.

Bonne chance!

[Craig Schrader]

One of Gaels questions was about $30,000.00 properties (houses). Yes, there are $30,000.00 houses, but, they would be in bad shape (need lots of work) and in a bad part of town. Most Real Estate Companies web sites have search capability and are able to search between $0 and higher than I can count.

[Rich W]

Originally Posted by Craig Schrader

One of Gaels questions was about $30,000.00 properties (houses). Yes, there are $30,000.00 houses, but, they would be in bad shape (need lots of work) and in a bad part of town. Most Real Estate Companies web sites have search capability and are able to search between $0 and higher than I can count.

They might also be very far out of town and not near any services (police, fire and utilities (water, electric, gas, sewer and trash collection). It might be a very long drive to shop, groceries, medical care, entertainment etc. You could probably find cheap property in the middle of an Arizona desert, but would you want to live there? When I lived in Florida they used to say 'Land of sunshine, but it's not free sunshine'.

[cwf]

Can't PM ya.. good luck.. you can find some isolated properties for that cost.. or places few would 'want' to live.. well, depends upon what you call 'living'. If you are seeking a place to 'land' in the US... it is possible to make creative choices. There are a few options such as securing a real estate agent in the area of your choice... that is where I would begin.

Good luck.

[Gaël]

Originally Posted by martin300662

You had one comment about paying taxes when renting out the property....I know in Europe the cost of local tax passes to the occupant (I own two houses in the UK and the people that rent those houses pay the tax) whereas in the US the cost of rent tends to include the cost of the local tax as that is owed by the property owner.

Each country in Europe is different, for example in France, if you are a property owner, you have some taxes :

- Annual taxe for the area (in september): it depends the acre of the property and where you live, it's different (very different) if you live in Paris or in a lost countryside...
- Annual taxe for the house/appartment (in september): it depends the sqft of the house/appartment and increased if you earn money...
- Annual taxe (in september) if you are relatively rich, if you have a property where the value is more of $1.000.000, you have to pay a special tax.
- And of course some taxes, insurance, when you buy a house to a professionnal (Realtor), you pay around 2-5% of the house's value, and you pay the notary... you save 50% if the house has less of 5 years.

Many expenses in September !

The area where is the most expensive is in Monaco... an appartment 500sqft... between $1.000.000 and $2.000.000 ... !!! Paris is lot cheaper than Monaco !

Originally Posted by martin300662

If you are seeing property that appears to be offered for sale at less than expected it is also possible that there are additional charges against the property - as an example we were looking to buy a second (holiday) home in Florida and one particular complex had properties that were for sale for very little cost, but when I contact the Realtor (the real estate agent responsible for selling) there were 'resort charges' unpaid for several years which effectively passed to the new owner and so devalued the property - this is quite common in vacation locations.

Yes, I've already seen in TV some properties in Florida (or other city in USA) that the future owner will have to pay charges unpaid since several years... wow...

Originally Posted by Aage

If you are referring to your results from an online source, I would forget that and get a realtor.

There are many things about a house that those listings do not show, and you can only find them out by using someone with "feet on the ground" in the area in which you are interested. If there is a toxic dump next door, (s)he should know about it.
[...]
If you are serious about this, in your place I would take a week or more to go there to meet with a lawyer and find a good realtor in the area. That's the only way to get the real information you will need to make an informed decision.

Bonne chance!

Yes of course, I never buy an house only by web, we have to come in USA for holiday and see personaly different properties but dont forget one thing too... is to live somewhere during holidays is different that to live during 2-3 months... hummm...
This buying needs more reflexion before sign a contract.

Merci !

Originally Posted by Aage

If realtors' fees in the US are anything like here (in Canada), you will pay a percentage to the realtor when you buy no matter how you buy it, so make use of their service.

Yes of course.

Originally Posted by Aage

But here's an interesting fact: I believe that US citizens can deduct home mortgage interest against their taxable income. No idea how citizens of other countries who own US real property make out on that though.

There a few years ago, we deducted home mortgage from income taxes

Originally Posted by Craig Schrader

One of Gaels questions was about $30,000.00 properties (houses). Yes, there are $30,000.00 houses, but, they would be in bad shape (need lots of work) and in a bad part of town. Most Real Estate Companies web sites have search capability and are able to search between $0 and higher than I can count.

Originally Posted by richw46

They might also be very far out of town and not near any services (police, fire and utilities (water, electric, gas, sewer and trash collection). It might be a very long drive to shop, groceries, medical care, entertainment etc.

Ok... I understand better now, finally, we have the same in France, cheapers property but many work and far from every where...

Originally Posted by richw46

You could probably find cheap property in the middle of an Arizona desert, but would you want to live there? When I lived in Florida they used to say 'Land of sunshine, but it's not free sunshine'.

At the moment, I'm finding out about the different possibilities
Perhaps one day I'll buy an house around Arizona or not... only the future tell it !
It will be a property only for holidays, not to live during all the year,

Originally Posted by richw46

When I lived in Florida they used to say 'Land of sunshine, but it's not free sunshine'.

Why ?

Originally Posted by cwf

Can't PM ya.. good luck.. you can find some isolated properties for that cost.. or places few would 'want' to live.. well, depends upon what you call 'living'. If you are seeking a place to 'land' in the US... it is possible to make creative choices. There are a few options such as securing a real estate agent in the area of your choice... that is where I would begin.

Good luck.

What does it mean "PM" ?
So, for my future, I'm looking for a good place to be relax, without population, without noise, beautiful landscape etc.

Thanks

[mayco]

I would suggest the following; choose the general area in the USA that you think you may be interested in. Then use google maps to find towns near the area you have chosen. Then google "home rentals" for the town you have chosen. Some realtors also help with rental homes and there are also "property management" companies in most towns that can help you find a rental home. If you can find a home to rent then you can use the rental home to live in while you explore the area more and become more familiar with the local real estate market. (Prices,taxes,etc)
Do not sign any purchase contract papers, none, until you obtain an attorney from the local area to help you understand the documents and home purchase process here in the USA. The fee for an attorney will vary but in the price range you have mentioned, your attorney fees should be well under $1000.

[Gaël]

And I think I have to pay the property in USA in the totality without credit.

We can't have the possibility to make a credit payment for a property, our banks don't accept and I don't want too.

[Gaël]

Originally Posted by mayco

I would suggest the following; choose the general area in the USA that you think you may be interested in. Then use google maps to find towns near the area you have chosen. Then google "home rentals" for the town you have chosen. Some realtors also help with rental homes and there are also "property management" companies in most towns that can help you find a rental home. If you can find a home to rent then you can use the rental home to live in while you explore the area more and become more familiar with the local real estate market. (Prices,taxes,etc)
Do not sign any purchase contract papers, none, until you obtain an attorney from the local area to help you understand the documents and home purchase process here in the USA. The fee for an attorney will vary but in the price range you have mentioned, your attorney fees should be well under $1000.

Thank you for your answer !

Yes, Google maps helps me very well, it's a very good system to see some areas (for this subject or for holidays of course).

So, have some weeks in the area wished is essential

[Wayward]

Originally Posted by Gaël

Hi everyone,I have some questions about the life in USA,

Hello! Your questions are good ones.

Much of my family lives in northern Europe so I can tell that your initial purchase price and the overall tax burden to buy a homes and a tow vehicle will be significantly lower here than in EU countries.. However it does vary greatly by state and by county within that state.

We are looking at similar data having just retired. We now have property in North Carolina, South Carolina and Colorado, but are looking to move to place where people think low taxes are a good thing. I can share our thinking with you...

1 - Start by looking at the "overall tax burden" of various states. Here is an example of a website that gives a high-level picture: FatWallet: Best and Worst States to be a Taxpayer

2 - As you narrow the states down, look at the current county/city overall tax burden as those vary within each state. Rural country settings will generally have lower taxes than high population city settings.

3 - Also look at political party makeup and demographics in the areas you like. Some such groups like high taxes. Other such groups like low taxes. The website CityData (search by city or by county) can help you with that research once you have an idea of where you want to live. It does no good to move to a place with low taxes if the people there want to make them higher in the future.

Originally Posted by Gaël

When you buy a home, what are the different taxes? Per month ? Per year ?

This was answered above. It is per year and based on the value of the home. This varies greatly but figure around 0.5% up to 5% per year depending on county and city.

Originally Posted by Gaël

For exemple, you can have a year taxe, the cost depends of the area of your property or you can have an other taxe because you are the owner of the property but if you rent the property you haven't this taxe.

If you live in your house, many places give you what is called a "homestead exemption". For example, let's say you have a house worth $100,000 in a county with a 25% homestead exemption ....... if you live in it as primary residence, you would pay taxes on $75,000 value. If you rent it out, you pay taxes on $100,000 value.

Originally Posted by Gaël

It depends of the state ? For example, I have a dream, it's to live in Arizona, near a lake or Colorado river, or around Flagstaff / Phoenix... I love many area in this state.

I remember, 10/15 years ago, I had a dream : be the owner of an Airstream... and the last yaer, I materialized my dream... Why not a pretty house in AZ in a few years ?

Keep dreaming! I hope to see you soon. Many many open roads here and a great freedom to enjoy them in your Airstream!

[SARGE/AF]

[QUOTE=Gaël;1559105]Hi everyone,

I have some questions about the life in USA,

Gael, everyone on here has given you real good information to consider, but here is some more that you should take into consideration.
1) Just because a house is priced low does not mean it is in a bad area, but will generally always mean it needs repairs which if you are the kind of person who can learn (Lowes/Home depot are places that can help with most projects) and don't mind using their hands can be very beneficial in that you end up with a home worth more than you have invested commonly called equity which is a great thing because it increases your net worth.
2) Area- one thing that is not mentioned is location, here in the U.S. you have areas that are called tourist or retires locations and this drives the prices for properties much higher than they should be. Az is one of those places as many persons as they age find that living in the desert area is better for their health, hence the higher prices, while Texas has lower cost and is still in the desert. If you have no real ties (family) in that particular area I would search other areas of the country as well. I live in Eastern part of Tennessee which from here also encompasses South west Virginia, southern Kentucky, western North Carolina all within about an hour drive depending on location, taxes are relatively normal with the rest of the country, property cost can range anywhere from 40 grand up to over 1 million, properties lower than 40 require much work, but again can be very rewarding. So as you can see location can play a very important part on the cost of living here, South & Midwest (east of rocky mtns) is usually the cheapest while north, west, Midwest west of the rocky mtns can be very expensive.
3) websites such as Zillow only list those properties that are mostly for the rich. You should visit websites of places like Century 21, Remax, Realtor.com, etc, and many on here can give you the websites of those in the areas in which you may be interested.
4) Realstate agents generally charge 7% of the selling price, can be paid by either the seller or the buyer, in most cases paid by the seller.
5) Property Taxes, if you buy a home later in the year, the previous years taxes are paid buy the seller in most areas, if buy in the beginning or mid year the buyer will pay the property taxes.
6) Incomes- I forgot to mention work, there are some areas that are limited work choices while others can have excellent choices and well as incomes. varies throughout the country.
So as you can see there is much to consider in location, best of luck to ya.

[Aviator]

Gael,

PM is an abbreviation for Private Message which may be sent directly between members of the Airforums and not visible to the public. If you "click" on a member name in a post, the drop down menu will provide an option for PM.

[cwf]

Originally Posted by Aviator

Gael,

PM is an abbreviation for Private Message which may be sent directly between members of the Airforums and not visible to the public. If you "click" on a member name in a post, the drop down menu will provide an option for PM.

Gael,
That is correct. PM is 'private message' between two or more members of this forum.

In order to participate, YOU MUST enable the "PM" feature in your Profile. There is NO additional cost for this feature of the Forum. However, there is the basic courtesy of only PMing folks who want to discuss 'off line' topics. In general, these topics can be stuff like your personal address or phone you do not want posted to 'the web', or favorite family pictures(pics).

hope this helps...

[Gaël]

Oh ! Sorry ! I haven't seen it, I've just seen that my PM box was disabled...

Now, I've changed it.

That's why I didn't understand you wrote "can't PM"

Thank you to all members for your answers and to SARGE/AF & Wayward too for your time, I'll study these

[Msmoto]

How does this look?
El Moro Sunrise 2010 by Fantinesvoice.com, on Flickr

Southern Colorado, about a mile north of El Moro on CR 75.
37.242853 N, 104.466851 W is the RV pad on 280 acres.....

Buyt, taxes are best in Texas and South Dakota as I understand it.