Will Owners Be Taxed Out Of Homes ?
Will owners be taxed out of their homes? What? I don’t know. Could it happen? Property taxes are going up. The statements came out there in your mail. You received them, you looked at them and you like either had to put on glasses to, like, double check and see what’s going on. You know, Aaron Rodgers has a discount double check where he checks your insurance just to make sure that you have the best insurance possible.
So you have like the property tax double check where you’re like, whoa, I need to put something on here to make sure that’s wow, that’s the right number. I’m going to be paying that much. Interesting. So you’ll be getting a lot of calls and discussions about that.
And will people actually be taxed out of their home? Think about that one, right? With all these things that are going on and we have inflation going up and it’s like through the roof and how much is it going to go up next year? 20%, I say. Yep. 20% is my number that I think inflation is going to go up year over year. Over the next 12 months. I think we’ll be up 20% with everything considered, which is a lot.
And I think homes are going to go up by that same amount and then all of a sudden we’ll be totally scratching our heads and we’re like, wow, that’s really crazy. So are they people going to be taxed out of their homes? I’m not sure.
So how much money does the local government really need to run? I don’t think they really need any more than they currently have. So then they have to keep the actual amount that they tax you the same, plus inflation. Right. And they should all be good. And hopefully that’s exactly what does take place that your actual amount you pay to them over time doesn’t double.
If your property taxes go up in value or your property goes up in value and your property doubles over, you know, a short period of time, what in the heck would the government do it? Twice as much money, right?
So I think what they’re probably end up doing is changing the millage rate, giving a larger deduction, having maybe more investors pay for it as secondary property owners hopefully help out the people that actually live in their own home, you know, and raise the the minimum cap for for homestead exemption and raise that considerably because there’s no protections for investors as secondary homes.
So what that ends up meaning is that investment properties are going to be really, really taxed. There’s not like a cap. It can go up, there’s not like deductions for it. And then when that tax rate goes up, you’re going to see rental rates skyrocket and then we’ll have a problem there.
So we’ll figure that one out when we get there. But yeah, I see inflation going up dramatically and as well as tax inflation.
So when your property goes up in value in your taxed more, then that also is a component like the increased taxes, also a self- fulfilling prophecy that adds to the inflationary index. So now you’re paying more for and it just continues on. So I don’t know when like somebody hits the brake and this inflation stops, but I don’t know that it’s happening any time soon.
So my prognostication is 20% inflation for the next year, one year from today will be up another 20% from where we’re at. And that does cause a whole host of challenges. And I do hope that we come up with some property tax reform because like, it’s just not going to work.
People’s property taxes going up by so much. I did get a message the other day from Dr. Blake Bennett of Texas A&M. He’s been a guest with us here multiple times. And he’s a very smart man. And he did confirm for us. That people who own their property can file a homestead exemption as of the first of the year after they purchased the property. So then they file this homestead exemption, but then your property cannot go up in value by more than 10% once you filed your homestead exemption.
Okay. So what does that really mean? So what that means is if you purchased a property today. Okay. And then you file your homestead exemption on the first of next year. Your property taxes can actually go up by any amount between now and next year.
And then once you file your homestead exemption, then it can only go up by 10%. So any time between now and the first of the year, it’s like unlimited appreciation as far as whatever goes on for your homestead. So you’re not limited by any type of cap. And he made sure that he reminded me to that fact. He did call up the Colin card and confirm that exact information.
I do have it in an email correspondence if anyone needs it and is questioning me and you’re like, Well, that’s kind of crazy. And I would say that it actually is. Anyways, yeah, I think things are out of control. Let’s get some taxes down. Let’s lower them like lower everything.