patrick.net
An Antidote to Corporate Media
1,363,455 comments by 15,736 users - HeadSet, PeopleUnited, stereotomy online now
« First « Previous Comments 71 - 77 of 77 Search these comments
tatupu70
2010 Jun 29, 11:41am
UnitedSocialistStatesofAmerica says
A tax means less money in your pocket no matter what you call it.
Completely agreed. I was merely pointing out to these stunads that in one country the failure to pay them can result in your losing the house while in the other it DOESN’T.
Suggestion for YOU then. Say that--instead of saying they DON'T have property taxes.
Vicente
2010 Jun 29, 11:47am
People think that because Amazon or NewEgg aren't obligated to collect a sales tax, that there is no need to ever report any taxes for items purchased. However, your state income tax form may have a requirement for it. And to dodge it, is just a game of whether it's a piddling amount or not and whether you get a hard-ass audit.
Many consider property tax to be the fairest of all taxes. If you are using a piece of property to generate income, you can easily pay it. If you are letting the land lie fallow, that does not serve the greater good. Having to pay property tax is a small lever preventing this guy:
from hoovering up land during every downturn, and building a dynasty by virtue of eventually owning all the land.
UnitedSocialistStatesofAmerica says
It’s two completely different ways of collecting taxes.
So by your own definition it's a tax (property, asset, personal, whatever you want to call it) on your property, just with a different collection process and penalties. WTF are you splitting hairs over and why are you so fixated on this?
Consider these two scenarios:
1.Buy a property for $200K with 50% down @ 5%.Monthly $536.You will never see that down payment again unless you sell.
2.Buy the property with no down(VA if qualified) or 5% down(FHA if qualified).Ladder the $100K or $90K into CDs and make up the difference in payment($536) out of interest and out of pocket.If you have to default(job loss,etc.)you lose $0 or$10K and still have the CDs.
Why hand over $$$ to the lender?
tatupu70
2010 Jun 30, 12:58am
Consider these two scenarios:
1.Buy a property for $200K with 50% down @ 5%.Monthly $536.You will never see that down payment again unless you sell.
2.Buy the property with no down(VA if qualified) or 5% down(FHA if qualified).Ladder the $100K or $90K into CDs and make up the difference in payment($536) out of interest and out of pocket.If you have to default(job loss,etc.)you lose $0 or$10K and still have the CDs.
Why hand over $$$ to the lender?
Well, it's not quite that simple. There will be PMI in the 2nd case and usually a higher interest rate. But, I agree, putting down as little as possible is usually a good strategy.
Consider these two scenarios:
1.Buy a property for $200K with 50% down @ 5%.Monthly $536.You will never see that down payment again unless you sell.
2.Buy the property with no down(VA if qualified) or 5% down(FHA if qualified).Ladder the $100K or $90K into CDs and make up the difference in payment($536) out of interest and out of pocket.If you have to default(job loss,etc.)you lose $0 or$10K and still have the CDs.
Why hand over $$$ to the lender?
Only if the interest rate is high enough, and when you're able to take some money out to make up your expenses. What's the current rate? Can you do that with CD? Think about it. CD in these days are more like a safety box rather than an investment.
Here are some quotes from your article that you conveniently left out -
http://www.apartmentsba.com/argentina-real-estate-consulting-&-property-management-69/annual-property-taxes-in-buenos-aires-91/
"It doesn't really matter what you call the tax, there is a tax that is due each year based on the value of your property or assets owned in Argentina. "
"As a foreigner that is purchasing property in Argentina, it is ESSENTIAL that you pay this property tax. When you go to sell your property you must get the blessing of the AFIP office via a certificate/permit saying you are up to date on your property taxes. If you aren't up to date you will not be given this certificate. Not only do you have to pay the back taxes but there is a penalty of up to 25% for each year that you didn't pay the property taxes." (ESSENTIAL capitalized in the article)
"For all the economic problems in Argentina going on, one would assume the government would make paying this tax very easy. WRONG. The government won't allow you as a foreigner to pay this tax. Yes, you heard this correct. You must hire an accountant to prepare this property tax for you. Most of these accountants can easily prepare it for not a huge sum of money but not cheap either. I use one of the most respected accounting firms in town and I was charged about u$s 450 to prepare mine for EACH property. There are cheaper accountants out there but I tend to use the best in the business when I do business in Argentina. You might think you are saving money by using someone with a cheaper fee but more times than not it will come back to haunt you when it's all said and done with most professional services here in Argentina."
So Argentina has a property tax that you are required to pay or else you have to pay a hefty penalty when you try to sell. Not only that, but you also need an accountant (whom you have to pay) to prepare your property taxes. Sounds like pure utopia...
« First « Previous Comments 71 - 77 of 77 Search these comments
I am one of those homeowners with a house "underwater" and awaiting a final decision on a loan modification. I hear many stories of people walking away from their homes. I do not blame these homeowners in many respects. But one has to consider what happens "the day after" as follows:
1) You will be put on a black list operated by Fannie Mae and Freddie Mac. You will not get another home loan for ten years.
2) You will avoid Federal income tax liability through 2012. You will owe State of California income tax on any losses to the lender.
3) Yes, for now, you will find a rental. What happens when all of the landlords also default and all of the real estate is owned by the banks? When you go and apply for a rental, you might get turned down because you're on the big bank's black list.
4) You may believe that if everyone walked away, it would "bring the big banks to their knees." This is a false assumption. The monster banks will turn to the taxpayers for reimbursement. Your grand children will still be paying for this.
5) With a foreclosure on you record you will have employment problems and problems with your security clearance.
6) One day the market will come back. I have seen crashes like this in HOuston and Buenos Aires.
A saner strategy is to default on your second lien. If there is no equity to secure it, the bank will not be able to foreclose. If the second lien was purchase money, the bank will not be able to sue you. Your credit will take a temporary hit but you will survive it.
#housing