Reply to Do we stay in DC or move to Baltimore?

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[quote=Anonymous]I really like this house in Baltimore for the price:

https://www.zillow.com/homedetails/5414-Purlington-Way-Baltimore-MD-21212/36621758_zpid/?

But then you go lookup how much property taxes are on the city's website; the current owner is paying $12,000+ per year in property taxes on an assessment of ~$550,000:

https://cityservices.baltimorecity.gov/realproperty/default.aspx

Thus, if I were to buy this property, I would get reassessed at the sale price for taxes with no tax breaks.  Baltimore's property taxes are about 2.2%, meaning I'd have to fork over about $1250 [i]per month[/i] in taxes alone  :shock:  :shock: .

What do I get in return?  Terrible schools and a dysfunctional city government with high crime?  Why would I pay that much?  I can move over to Howard county where the property taxes are HALF.  That means I'd save $600+ per month in taxes alone. Do the math:

$7200 per year in tax savings x 30 years = $216,000 saved in taxes alone just by choosing Howard county instead.

What if I also took that $600 per month that I saved by simply moving to Howard County instead of Baltimore is threw it into the stock market earning 8% per year in compounded returns?

https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

The calculator states that that money can turn into $700k-1M+ depending on the return  :shock:  :shock:

Just by choosing an address in Baltimore I could potentially lose $800k due to taxes and opportunity costs alone.  That's why Baltimore is a horrible ROI.  Even if the house appreciates by 100% over 30 years, it will be very difficult to beat the fact I could have made out way better by choosing another area with reduced taxes and insurance.  Factor in upkeep, and it is very difficult to justify paying $15k+ per year in property taxes when the bill can be cut in half by literally driving 5-10 minutes away. [/quote]

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