There is almost no private land in this area. So, it was a super-shock to see the price of vacant land triple in one year.
Got to love seeing LAND prices double every year.
- Thread starter Sourdough
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Personally, I don't like to see land prices climb. If I sold and bought a new home and/or land, this just means I pay more taxes than I would staying here. When I die, the kids may enjoy until this spikes my net worth, and death taxes get involved, and my family once again pays more taxes.
So in effect, price increases aren't worth the paper they are written on.
So in effect, price increases aren't worth the paper they are written on.
Last I knew if you sell your home and purchase or build another with-in 24 months you pay no tax on the sale, you simply move your "bases" forward.
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Land prices are shocking. We had an appraisal on our ranch last summer and I couldn't believe the estimate. The only time the high land prices benefits a person is like in our case. We own a large property and the kids don't want it. So when we sell this place we'll scale down to maybe just 20 - 40 acres and build a modest house and bank the difference.
It's funny how the land prices change. When my grandpa passed on in 1984 his farm was valued at $2100/acre. When Grandma passed in 2012 (10 years and one week ago) it was 7100/acre. When my mom and uncles sold it last December it brought $9100. The capital gains are going to be insane...
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I believe there's a capital gains tax exemption on the sale of some properties. The last several properties that I've sold didn't have a capital gains tax liability. It pays to have a good tax accountant when selling real estate.
My uncle is the executor and he's pretty finance savvy. (He is an MBA.) This is how he explained it to me: The land is actually in two trusts dating to 1984 and 2012. The portion in the 1984 trust will have a lot of capital gains. The 2012 portion will have quite a bit less.
It's the property tax that is the problem. Here, even if you don't sell, your property tax is based on the sale value of whatever sold in your neighborhood the prior year.
If your neighbor's house seĺls for double its previous value, your house will also double in value and you pay property tax accordingly.
If your neighbor's house seĺls for double its previous value, your house will also double in value and you pay property tax accordingly.
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That is true. And that is why its important to buy a property where you can take advantage of agricultural and/or timber exemptions on your land. I think in my case the county separates out the house and 1 acre and tax it one way and the rest of the property is taxed very low as agricultural (grazing) and timber land. Even the smallest ranch around here is valued in the millions, nobody but the very rich could afford property taxes like that.
There is also I believe a one time exemption once you turn 65 years of age.
Most locations in Alaska there is NO property tax on your personal residence after age 60 or 65 (generally capped at first $300,000.00 of assessed value)
That sure is a low cap!
Not sure what a house goes for in Alaska, but in California that 300,000 exemption means you don't pay tax on your closet.
https://www.realtor.com/realestateandhomes-detail/102-SE-2nd-St_Ogden_IA_50212_M79987-69574
I mean, in my town in Iowa a 2200 Sq ft brick Victorian on a corner lot - with a sun room, wraparound porch, and the original 1880 carriage house still intact - is sale pending for $189,000. What's that worth in SoCal? The taxes each month in Cali would probably be more than the house payment in Iowa.
Reason #2,494 not to live in California, confirmed...
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Since the lot size and square footage is about the same as my house, except I have 1 more bed and 1 more bath, I'd expect that house to be ~$850 - $900k.
This all varies by state. Some states have the Ag/Forest land tax rate, some do not. I don't believe we have a tax cap and I know we still pay property taxes after 60-65. Also, we sold our place in Oregon last spring. If it's your primary residence, you only pay cap. gains over $500K. Our cap. gains on the sale were less than that so we did not have to pay additional taxes (for that at least).
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Our property taxes on land are generally low. Structures or mprovements are higher. House is okay just hard to at on fixed income. We are locked over 65 which will help as well as homestead and agriculture use. Husband has 350 acres, I own 128 and we own 40 in both names. We are selling 8 to neighbor for 5500 an acre. It s landlocked so it joins his property. Sister sold her 80 acres for 2500 an acre about 5 years ago. Brother sold 70 of his landlocked acres to same person at 3200 an acre. Taxes are holding steady but value of land has increased. Husbands taxes on his oil/gas royalties are more than he gets annually. That’s why at our age we bought a double wide when we sold our house. My girls can sell it, burn it or use it when we are gone. My stocks will provide income to pay taxes so not a burden on them. Nit enough for house taxes, but will cover land taxes. Large ranches bought, subdivided and sold are selling for 10,000 an acre with no water or power. Going like hot cakes. If sold property attaches to your home you don’t pay capital gain
That's how our new property is. It's all zoned timber, and we pulled out one acre to build a house on. Property taxes will be a lot lower.
Looking around at property in the area, we could sell ours (that we bought in August) for about $150k more today.
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One thing about high land prices is it makes it a challenge for young folks to get a start.
