Property taxes on a house priced at $42k could not possibly be $5k.
Sale price and tax assessment aren’t always the same. Often the tax assessment is lower.
Also, if you live there, the homestead exemption automatically lops off another chunk of the taxable amount. You need to find out what your homestead exemption will be.
For instance, if your state’s homestead exemption is, say, $25k, then
only $17k (or less, depending on assessed value) is subject to property tax.
The fact that the property has a rental unit may increase it by a little bit, but still, the annual total tax should be way less than $1k. I’d guess around $500. Nowhere near $5k.
In fact, the $0 tax shown could be correct, and perhaps it simply wasn’t explained to you correctly. You should go back and clarify. The “homestead exemption” is the key phrase to ask about.
Also, many municipalities increase your homestead exemption when you turn 65, reducing your property taxes even more. You could end up with $0 property tax at retirement.
You should go back to the realtor and get prequalified, and ask for a cost breakdown, ie, what will your monthly note be?
A $42k house will be far less than rent.
More importantly, though, I’d wonder, why is the home’s asking price so cheap? What’s the catch? The current owner you named might be a clue!
I’d check with the local police department for the neighborhood crime stats.
Also the racial demographics.
I looked up similar homes on the county website and the taxes were a bit less than I thought they could be but still astronomical. I’m in a 4000sq ft home now in Missouri and the prop tax is just 1600/yr
The 42,000 house is clean and in very good condition, the street and the area is quiet and safe. It’s something I could just pay cash for..another reason I’m interested.
This one is very similar to the one I’m interested in..same size..same area..same price range.. taxes are 2.192.66 on a value of 21,385 ... seems like an awful lot for a cheap tiny house :-/
http://jacksonil.devnetwedge.com/view/RE/1522181002