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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]

You are wrong starting at your first premise.  Baltimore does not  reassess  at time of sale.  They reassess every three years as all as Maryland does.  Once you file for a homestead exception, available to all primary homeowners in MD,  they are severely limited in how much they can raise the appraised price each year.   Even without that. Appraised value is never as high as market value

Second, property values are higher in the county for something comparable.  A house that sells for 1.25 million in Roland Park would sell for $1.4 or 1.5 in Ruxton or Lutherville,

No one who wants to live in Baltimore city is living in Howard County, sorry.[/quote]

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