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Thoughts on this house in Providence
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Richthofen



Joined: 02 Apr 2014
Posts: 69

PostPosted: Sat Apr 30, 2016 7:58 pm GMT    Post subject: Thoughts on this house in Providence Reply with quote

I realize this is further out, but considering putting an offer in on this home.

https://www.redfin.com/RI/Providence/84-Keene-St-02906/home/51721231

Needs new shingles/siding in the front. Otherwise pretty turn key. Newer windows.

Was thinking given the size might be the kind of house I could run an airbnb out of part time, or take a student renter on given its proximity to Brown. Wouldn't need to, but might let me hack away quicker at the mortgage, or be a good business my wife could run out of the house when the kid goes into school.
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PostPosted: Sat Apr 30, 2016 11:51 pm GMT    Post subject: Reply with quote

Real Estate Taxes: 9651.95

WTF? RI tax is freaking high!
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optimus



Joined: 23 May 2008
Posts: 27

PostPosted: Sun May 01, 2016 12:23 am GMT    Post subject: Reply with quote

Anonymous wrote:
Real Estate Taxes: 9651.95

WTF? RI tax is freaking high!


Boston property taxes need to be higher. Maybe then we wil lsee house prices go back to normal levels.
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PostPosted: Sun May 01, 2016 1:09 am GMT    Post subject: Reply with quote

Quote:
Boston property taxes need to be higher. Maybe then we wil lsee house prices go back to normal levels.


The reality will be inline with your wish, but the logic of how things worked should be reverted.
When home price drop, town will raise tax rate, to maintain the same amount of tax income. So if one day we see Boston property taxes sky rocketed, that means we are in deep housing price recession. That normally will start with much higher interest rate that puncture housing bubble.

so higher interest rate --> home price drop --> property tax rate increased should be how things roll out.
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Richthofen



Joined: 02 Apr 2014
Posts: 69

PostPosted: Sun May 01, 2016 1:39 pm GMT    Post subject: Reply with quote

Anonymous wrote:
Real Estate Taxes: 9651.95

WTF? RI tax is freaking high!


That's the resident rate, too. It's $16,000 on this property if you are a landlord.
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PostPosted: Mon May 02, 2016 12:22 am GMT    Post subject: Reply with quote

Quote:
That's the resident rate, too. It's $16,000 on this property if you are a landlord.


Wouldn't the landlord be able to expense out the tax on rental income? Do you know about how much rent the house you are trying to buy would fetch monthly? Try to see the ROI rate with such high tax rate.
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Richthofen



Joined: 02 Apr 2014
Posts: 69

PostPosted: Mon May 02, 2016 4:46 pm GMT    Post subject: Reply with quote

Guess it doesn't matter, because the house went under agreement. It was on the market for close to 3 weeks with no open houses; but all of the sudden I submit offer paperwork and there's multiple offers close to ask. Who the eff even knows in this market anymore.
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PostPosted: Fri May 06, 2016 2:57 pm GMT    Post subject: Reply with quote

It is on 'accepting backup offer' stage. Looks like the owner already got offer, but like to put the home on the market to see if there would be any higher price it would fetch, and failed. So the owner now confirm no bigger fool than the dude originally offer, and go back that one. Laughing
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Richthofen



Joined: 02 Apr 2014
Posts: 69

PostPosted: Mon May 23, 2016 5:54 pm GMT    Post subject: Reply with quote

Here we go again. I'm sure as soon as our offer is accepted the housing market will crash.

https://www.redfin.com/RI/Providence/346-Rochambeau-Ave-02906/home/51713474
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Dudeman
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PostPosted: Mon May 23, 2016 8:40 pm GMT    Post subject: Reply with quote

Taxes (2015)
$13,111

Richthofen,
Holly crap! How could this one with lower price pay much more property tax, compare to the last house you were looking at? They are both in the same zip code. I guess we Bostonian have much to learn from RI housing market.
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Dudeman
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PostPosted: Mon May 23, 2016 8:44 pm GMT    Post subject: Reply with quote

Quote:
Taxes (2015)
$13,111

Richthofen,
Holly crap! How could this one with lower price pay much more property tax, compare to the last house you were looking at? They are both in the same zip code. I guess we Bostonian have much to learn from RI housing market.


Never mind. I read the pervious house tax wrong from the other post. The other house tax rate was:

Taxes (2015)
$15,524

Wow! RI government is really a bloodsucker.
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Richthofen



Joined: 02 Apr 2014
Posts: 69

PostPosted: Tue May 24, 2016 1:42 pm GMT    Post subject: Reply with quote

Dudeman wrote:

Wow! RI government is really a bloodsucker.


Yeah its about 40% more in taxes. about $10-12 per sqft in Boston, $19.25 for residents in RI (and $33.75 for non-residents!). However you won't see foreign nationals buying homes to keep empty as investments like in Vancouver/Boston/NYC when they are paying $33.75 per sqft in taxes.

But that house would easily be $700K in Medford. The payments are really the thing to consider, and its in a really nice walkable neighborhood like a mile from great food and bars and stuff.

The hardest part will be the schools. We'll probably have to put our son in private schools, although we'll give the public schools a good look first.
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Dudeman
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PostPosted: Tue May 24, 2016 3:48 pm GMT    Post subject: Reply with quote

Quote:
Yeah its about 40% more in taxes. about $10-12 per sqft in Boston, $19.25 for residents in RI (and $33.75 for non-residents!). However you won't see foreign nationals buying homes to keep empty as investments like in Vancouver/Boston/NYC when they are paying $33.75 per sqft in taxes.



You bring out a very good point. when maintenance cost is higher, such as property tax rate, mortgage interest rate, condo fee etc. it does suppress investment intention.

nose diving of Property tax rate from real estate investment hotspots in recent years such as Vancouvor, NYC, San francisco etc further confirm it.

The downside of high maintenance cost property is, your property will not valuate as fast as those with lower maintenance cost. And if property market go down hill, property with high maintenance will de-valuate quicker. It is all about cost per SQ footage and return rate on investment after all.
Same idea as you will see some of those boston condos with high condos fee have much less valuation for the past 5 years.

But if you don't plan to move for a very long time, then valuation doesn't matter that much. Also as long as your income is high enough to generate large enough income tax for property tax to substitute during tax season, then whatever property tax rate is less an impact to you.

Good luck!
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Richthofen



Joined: 02 Apr 2014
Posts: 69

PostPosted: Wed May 25, 2016 1:24 pm GMT    Post subject: Reply with quote

So we have an accepted offer. I fully expect this to be the absolute top of the bubble. I'm excited but nervous but I figure I can't really do worse than any of the other 'suburbs' 45 minutes from Boston.
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Guest





PostPosted: Wed May 25, 2016 3:46 pm GMT    Post subject: Reply with quote

It's very exciting . The house is really nice. Congratulations.
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