AUSTIN | Projects & Construction III

[AviationGuy]

Originally Posted by drummer

I have friends who own an old bungalow north of Lake Austin Blvd near Deep Eddy. They bought it in the early 80s for $20K or something. I think it's worth somewhere around $1.3M now. It's a small 2/1 with a studio shed in the back.

I guess the downside is the property taxes when you own a place in such a prime location. And the property taxes in Rainey must be especially astronomical.

[ILUVSAT]

Originally Posted by AviationGuy

I guess the downside is the property taxes when you own a place in such a prime location. And the property taxes in Rainey must be especially astronomical.

Yeah. The tax rate is basically the same citywide. It's when the property values skyrocket - so do taxes owed. However, I'd much rather pay a little more in property taxes than pay a state income tax.

[AviationGuy]

Originally Posted by ILUVSAT

Yeah. The tax rate is basically the same citywide. It's when the property values skyrocket - so do taxes owed. However, I'd much rather pay a little more in property taxes than pay a state income tax.

The property taxes on these properties can be so high that the owner can't afford to keep the property, and has to sell. You have to have a high income or a lot of money in the bank to pay the really high property taxes.

[ILUVSAT]

Originally Posted by AviationGuy

The property taxes on these properties can be so high that the owner can't afford to keep the property, and has to sell. You have to have a high income or a lot of money in the bank to pay the really high property taxes.

Yes. But, that is just one scenario. The issue is more complex than you laid out and it does have some remedies.

[AviationGuy]

Originally Posted by ILUVSAT

Yes. But, that is just one scenario. The issue is more complex than you laid out and it does have some remedies.

Curious about what the remedies would be. I'm not doubting you...just hoping you'll explain.