Posted Jun 24, 2013 by Martin Armstrong
There is a huge difference between buying real estate in America and that in Europe or even Asia. The USA tells you to buy a home for your retirement. But nobody looks at the bottom line. Let’s say you buy a home with a $300,000 30-Year Mortgage. In interest at 4.75% you will pay just under $310,000. However, let’s say your taxes are $10,000 annually. You will pay $300,000 in property taxes. Now you sell your home and get $600,000. Did you double your money net of taxes?
Property taxes are the worst possible tax. They prevent you from retiring in the home you raised your family in because the taxes never end. States like New Jersey are then imposing an EXIT TAX. If you sell your home and go to Florida because you cannot afford the local taxes, they then want a penalty to leave.
You do not pay a cover charge to get in, but you cannot leave unless you pay them. The Feds do the same thing.