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Post by Clipper on Feb 24, 2011 11:44:50 GMT -5
You are quite correct, but INDIRECTLY is the word in question. It is a matter of opinion. It is actually the property owner that pays the taxes and if an enterprising property owner didn't invest in rental property there would be an inordinate number of people living in government subsidized projects. It is a matter of semantics.
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Post by stoney on Feb 24, 2011 12:19:06 GMT -5
Yes, but when taxes rise, so do rents.
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Post by Clipper on Feb 24, 2011 12:48:40 GMT -5
It's the price you pay for the privilege of not putting up with the tax burdens, maintenance costs, and upkeep associated with home ownership. It all comes out in the wash. Unless you live under a bridge, there is a price to be paid for shelter.
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Post by stoney on Feb 24, 2011 13:48:14 GMT -5
But Clip, the renter is paying for all that you mentioned PLUS is giving the landlord a profit through payment of rent. So a renter IS, in effect, paying taxes. If the taxes go up, or any other segment of overhead, the landlord will usually raise the rent to compensate.
From what I understand (from watching CNBC) if a landlord isn't making 25% over & above overhead (mortgage, taxes, utilities if any, etc.) then the property is not a worthwhile investment.
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Post by dgriffin on Feb 24, 2011 14:17:42 GMT -5
I beg to differ on one point, Clipmeister: People who rent certainly DO pay taxes indirectly through their rent. Thank you, Stoney. I was wondering when someone would point that out. I'm neither a tenant or a landlord, but if I were the latter I would certainly pass the taxes along in the rent and can't imagine any landlord not doing the same. To a complaining tenant, I'd say, "you take up the real estate, you pay the taxes." Why should I? I have never used my CDL Class A for a job. I got it and kept it on the advice of St. Paul, who even though he was an Apostle, had a secondary skill of tentmaker just in case Christianity didn't go over well. I figure I'm not an Apostle, just a saint, but I should heed his example.  |
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Post by Clipper on Feb 24, 2011 15:41:19 GMT -5
I would think it would go without saying that taxes would be overhead that would naturally be passed along, with other overhead costs of doing business as a landlord and rental property owner. Of course the taxes are passed along. What business doesn't pass along the cost of their tax liability in the form of increased cost?
I love the pretense on which you base your retention of a CDL license Dave. You and apostle Paul. If you are a saint, I hope I end up in YOUR corner of heaven because it's going to be a fun place to spend eternity, and there will always be stories to read.
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Post by JGRobinson on Mar 23, 2011 7:16:19 GMT -5
I played landlord on my First House Rebuild on Howard Ave in the 90's, I will never ever do it again. I got the house really cheap, physically intact but need tons of deeper than cosmetic fixes but that didn't bother me, I was pretty handy.
I didn't have and couldn't get insurance and someone torched the place 3 days after I bought it. The City of Utica accused me of arson for profit till they found out It wasn't covered then I never heard another word from Law Enforcement, the fire department or any investigators.
Codes enforcement however became my biggest nightmare and was seemed unending! It wasn't a total loss but bad enough to condemn and thats exactly what they did. They ordered me to either tear it down or completely secure it and gave me 10 days to make one or the other happen! I was an Idiot, I should have just brought in the dumpsters and a Track Hoe, instead I decided to see if I could Salvage this and not lose my ass completely!
I did rebuild it to top notch condition, It looked and was for the most part brand new (no thanks to the City Of Utica), we joked it was nicest crack house in Corn Hill. Time to rent and thats when the fun really started. Everyone I rented to except 1 came highly recommended and paid 1st/ last and security, the last one was an employee of mine so I felt pretty comfortable with him.
Three different Tenants in 2 1/2 years and all three of them beat the place up, stuck me with water and electric bills, failed to pay rent and tortured me endlessly. Shooting ranges in my basement, Dogs used it as a bathroom, Crack Baggies, filth and destruction were left in the wake of each and every one of them, thousands of dollars in damages! The City of Utica raised my taxes, fined me for my Tenants Garbage Violations and even threatened to go after my real job pay if I didn't pay the water and light bills that were in my evicted tenants name, not mine.
I finally sold the house for less than half of what I could have gotten for it were 2 blocks south of there but at least I escaped with my life and finances intact! Tax the Landlords all you want, unless your a slum lord, your going to be on the crappy end of the stick. That's exactly why Utica looks like it does now...
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Post by stoney on Mar 24, 2011 13:39:51 GMT -5
"I didn't have and couldn't get insurance..."
Due to "red-lining"?? I thought that has been illegal for awhile now?
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Post by JGRobinson on Mar 24, 2011 15:10:43 GMT -5
Stoney, Blacklisted, Blackballed, Redlining, yes it is illegal and yes it does happen even today unfortunately. I was told by many, "Sorry, we don't write policies there", one company wrote the policy then canceled it 4 hours after.
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Post by stoney on Mar 24, 2011 17:23:25 GMT -5
Holy crap. I didn't know that was still going on.  |
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Post by JGRobinson on Mar 24, 2011 17:30:39 GMT -5
Big time, At that time, houses in Corn hill were being torched every 3rd or 4th night, the city was an inferno. What made it even worse, they only investigate arson's with Insurance claims down in CH. The second they found out I didn't have any, the Investigation was over, send in codes!....
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