@Neat Hat wrote:
Our PMI should be dropping off in the next month or two, as we’re getting really close to that 20% mark.
We hit the magic number on our balance with the last mortgage payment, and received a confirmation letter from the bank today saying the PMI will be removed on our next payment. That will cut our mortgage payment by about a hundred dollars a month (at least for a year or two, until rising property taxes cancel out those savings).
Speaking of which… my property taxes have gone up by 90% since 2003. I very much doubt my home’s value has increased that much in the same time period. I understand a few school levys have passed since then, but the amount we’re paying in property taxes on our house is insane.
Property taxes in MN are terrible.
We’ve had property taxes on some farmland increase by up to 300% in a year before. Its a huge racket.
Does your land have multiple use opportunity? Because I knew a guy up by Hastings who farmed on what was later to become a development. The county appraiser finally appraised his holdings with both possible uses in mind and his taxes skyrocketed. He sold the land just prior to the real estate bust for something like $25MM. I believe he bought it two decades earlier for less than $1MM… and for years was taxed well below its current valuation. It was painful though when the switch was made but given the sale he did ‘okay’ even after cap gains taxes.
Other thing was they used to heavily subsidize farm land property taxes – legislature appropriation for counties to keep farm property taxes lower than they would be. Did that almost every year as land prices were going through the roof – then for a while they stopped. Part of one of the legislative logjams a few years ago. I remember because my accountant did work for a number of farmers in S Central Minnesota and they got huge increases one year. Not sure what they do now.
The problem with farm land is the actual value of the land [what it would sell for] is a lot more than the typical income the land produces [profits from farming all told]. So if they tax based on its value [like most real estate is] it will be painful. If it was based on the income the land produced – that would be a lot easier for farmers to digest but quite volatile for counties as income goes up and down quite a lot. Also harder to assess and audit income. Appraisals are much easier.
Still sucks I know.