Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: EQ who wrote (24010)	8/22/2006 6:43:42 PM
From: J-L-S	Respond to of 42834

Zoned residential, but ... By purchasing with cash, I have been very successful at finding desperate sellers and at buying well below market. Also, all of the improvements are contracted out (by me) or implemented directly by me; therefore, tax appraisals on additions are done on a square-footage basis and not cost basis (as it would be if you purchased an expensive house built by someone else). I demolished structures which were on the property when I bought it. I got permits for the demolition, so my tax basis for the entire property was lowered from what it was at time of purchase. I have added over $200k in improvements which were permitted when required. Most did not require permits. For tax purposes, these improvements only added about $8k to the overall property value because of the way property improvements are appraised. My tax bill is still well below where it was at time of purchase. Example: you buy a new house wherein you opted for granite counter tops, and that option cost you $12,000 added to your purchase price. You will pay property tax on the additional $12k because the tax board bases your home value on the purchase price. If I go buy the same granite counter top (for $4,000 directly from the granite supplier) and install it myself, my taxes remain the same. If I don't want to do the work, there are laborers who know how to do it and have the tools, and it will only cost me a few hundred bucks; but it still wont add to the property tax bill. I usually opt to buy the tools and do the work myself.