Submit a question to our community and get an answer from real people.
Submit

Would you still owe property taxes after you payoff your mortgage? If yes, would you ever really own your home in the US?

Real Estate Question

Report as

Yes ... of course you still owe property taxes.

Property taxes are not a "rent" or "lease" that you are paying.
They are to pay for services that (allegedly) you either use directly, or benefit you as a member of society. Examples: schools, fire districts, police services.

Helpful (5) Fun Thanks for voting Comments (6)
Report as
Hi Walt,

The reason I pose this question is, if I die and the person who inherits my house cannot pay the property tax, they will in fact lose the property. Therefore, paying off a mortgage doesn't actually mean I own the house as I will continually need to pay this asset even after death. In other countries outside of the US, if you purchase the land, it's yours. You build the house, it's yours. You do pay the gov't taxes but it's not tied to your home or to the services provided. The business model to owning property in the US strikes me as odd.
Report as
*continually need towards this asset even after death. (update).
Report as
If it's not tied to home/land ... it isn't a property tax.

You are not paying the asset.
You are paying for services provided to that asset location.

However, it is valid to point out the irony of basing that service "cost" off the value of the asset.

Taxes should be higher in areas with high crime due to more need for police services, public schools, and fire protection. Instead, taxes are higher in areas with less crime, due to higher-valued property.
Report as
home= property and land = property, there is a correlation. The US real estate business model ties owning your property to services provided for that residential area. There are different international models. The property taxes aren't tied to services, i.e. I can live in one area and have my child attend any desired school in that country through testing. Schools are ranked nationally and you have to attain a grade level to attend, so regardless of where you live if you are smart, once you take the test at 11 or 12 years, and attain over 90th percentile, all the kids in that rank go to the high performing schools. However, as taxes are tied to services in the US, if you live in the area, you pay towards the school services provided. This model seems limiting to me. Therefore, I don't think taxes should be higher in areas with higher crimes. Services should be increased or decreased on a need basis only.
Report as
Sorry, let me clarify my point. Yes, you do pay property taxes it's called land and bldg taxes but it's not tied to the services provided based on where you live.And, it's minimal so if you pay off your mortgage and your house is inherited, the taxes aren't astronomical so keeping the house in the family becomes more attainable.
Report as
Property taxes usually aren't why people lose inherited property ... it's the "death tax" aka "inheritance tax" aka "estate tax". You have to pay a similar "gift tax" if someone gives you a gift worth more than a certain amount.

An easy way around it, is to (A) put the property in trust or incorporate it and have the family the "business" ... or (B) put the heirs' name on the title, before you die.
Report as
Add a comment...

Normally property taxes are paid each year.

Helpful (1) Fun Thanks for voting Comments (0)
Report as
Add a comment...

What? You've confused me.

Property taxes not part of the purchase price of a property .. Property taxes pay for all the other stuff you have the benefit of using ... the perks of varying levels of government (Federal, Provincial or State, even regional and town or city) Like: police forces, fire stations, community property like streets, street lights, street storm drains; paved highways, water systems, sewer systems and treatment plants .. the list is endless.

All taxes help to pay for these factors of civilized living. Somebody has to pay for these things.

Helpful (2) Fun Thanks for voting Comments (0)
Report as
Add a comment...

Yes, as long as you own the land you will pay taxes! I own my own home and land in the US. It is mine, I have the deed. I just have to pay taxes every year.

Helpful (4) Fun Thanks for voting Comments (0)
Report as
Add a comment...

of course you have to pay property taxes!! You will still own the property .

Helpful (2) Fun Thanks for voting Comments (0)
Report as
Add a comment...

Yes, property taxes are forever.

Helpful (1) Fun Thanks for voting Comments (1)
Report as
and that's my point. They are forever, therefore, buying real estate in the US becomes a moot point. Arguably, this model does not allow sustainable asset growth.
Report as
Add a comment...

as long as you pay taxes, you dont really own your property, nor your life. You may have a piece of paper that says you own the home, the land, the boat, or vehicle ...but if you stop paying taxes a man with a gun will take it away from you. and guess what they do with it... They sell it in an auction (as if it was theirs). As long as you pay taxes you dont really own shiet.

Income tax, sales tax, property tax, estate tax, state tax, federal tax, county tax, city tax, gift tax, vehicle registration, tariffs & customs, license & occupational taxes, User fees… interests, fines, surcharges, even insurances are also forms a taxation. Pay pay pay.
Most of our tax money is syphoned and wasted on corruption. Taxes are extortion. How would sanitation, streets and schools operate then? There are other ways and models of society, but everybody believes the Great Capitalist Fabrication.

one alternative is to un-corporatize banks, run them locally like co-ops, invest thru them with the money sitting in the bank (transparently & with accountability). There is more to the idea, but this isnt the place for the entire write-up which includes redefining a lot of things in this world.

Helpful Fun Thanks for voting Comments (0)
Report as
Add a comment...
Do you have an answer?
Answer this question...
Did you mean?
Login or Join the Community to answer
Popular Searches