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

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

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[quote=Anonymous][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]

Different strokes for different folks. You don't think it's worth it to live in the city? Don't do it. Go on, don't let the door hit you. It's weird that you don't get that not everybody wants to live in the burbs. [/quote]

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