These usually work in the seller's favor.
There is a premium paid over rent.
If for any reason the deal doesnt go through,
then the seller keeps the premium.
If someone cant buy outright at the beginning
theres a fail chance they wont at the end
of the contract too.

In a rapidly appreciating market, the buyer
locks into a lease price.

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On Jun 19, 4:25*pm, "Gil Faver" <rowdy'sb...[at]xxyz.com> wrote:
- quote -

My total annual property tax bill is reassessed ANNUALLY and it still
constitutes less than 1% of the value of the purchase price of my home
and I don't live anywhere near California. In addition, many of the
states with higher property taxes offset that burden by not having
state income tax.

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On 2008-06-19 12:50:57 -0700, PeterL <po.ning[at]gmail.com> said:

- quote -

That is not a valid assumption.

- quote -

I did click on the link and read on for a while, but would not
recommend that anyone else bother to do so. There is much gross
exaggeration throughout leading up to a sales pitch. Any financial site
that says: "Once you fully understand the power of the Lease 2 Purchase
contract, you will never buy or sell a home the conventional way
again." sets of alarms. When you get through all the text, at the end
you are asked to send $145 for lease to purchase software. But that
price is only if you ACT NOW. The price soon goes up. I pass.

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On Jun 19, 2:25*pm, "Gil Faver" <rowdy'sb...[at]xxyz.com> wrote:
- quote -


The addition of local taxes, and the annual increase, are relatively
minor. For example, I have now owned my home for 11 years, and it's
value has doubled. Yet my real estate tax remains 1.1% of the
original purchase price. So my effective real estate tax is 0.5% of
the value of my house.

The main point is my property is not reassessed periodically and my
real estate taxes don't increase materially.

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We pay 1% of the sale
- quote -

what are you talking about? In California, where property taxes are rather
low, we pay more than 1% of the purchase price (when you count the various
district taxes, etc.), and it does increase year after year.

Other states, I assume, are even worse.

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On Jun 19, 11:39*am, Pseudonyme <norman_cougl...[at]2cuk.co.uk> wrote:
- quote -


You made a lot of assumptions here, so let me make one. I assume you
are not here to spam your site. That said, point 001 may or may not
be true, depending on what you mean by "huge". We pay 1% of the sale
price, and property tax do not increase as long as we own the house,
which I think is very fair.

Points 3 & 4, what is your basis for making these assumptions? I
doubt that your #4 is correct.

#5, I didn't bother to click on your link. but lease to purchase has
been in existence in the US for a very long time.

#6, huge assumption, scare tactic. It may or may not happen. And
whether, if it happens, that it will also apply to individually owned
homes is not known.

#7, you are welcome.

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Pseudonyme <norman_cougloff[at]2cuk.co.uk> writes:

- quote -

The US Average property tax rate is 1.38% of the property value.
The very highest state-level average is 2.57% (Texas, which has
no income tax).

There are individual exceptions - these are averages - but your
numbers are way off.

(source: Moody's Economy.com, via the New York Times)

- quote -

A property with $3000 taxes should be worth, depending on the
state, something on the order of $250,000. Are you really
charging only $1000 rent on a property valued so high? Sounds
like you need to raise the rent - or get your property
re-assessed if it's not worth that much.

- quote -

Please clarify.

- quote -

Actually, he's said, variously, 25% or 28% (the latter is what
it was under Reagan).

He'd have to fight pretty hard to get that increase passed,
but regardless, at the moment, this is pure speculation.

Given your incorrect numbers re property taxes, I wonder
what you're trying to say/ask. And what "lease to purchase"
has to do with any of this.

--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
http://www.greenend.org.uk/rjk/2000/06/14/quoting

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001
Owning a property in the US implies to pay a huge amount of Property
Tax
(local ass USD 1.000.000 house leads to a USD 30.000 P.Tax/year)


002
25% of the yearly house gross rent goes to the Property Tax.
(3 months of rent : USD 3.000 of P. Tax for a US 1.000 month rent)


003
Is the Property Tax social prohibited in the U.S. (taboo) ?
60 hours carrefuly listening to CNN Financial analysts and Tresury
Chief : NONE of the gurus never mentioned to Property Tax as the
Number 1 or 2 reasons to Banks Foreclosures.


004
20% to 40% of house owner would still honour their mortgage payment
with a 0-value Property Tax.


005
LEASE TO PURCHASE

This model might be an alternative to buy a properties in the US.
I am not aware that model exists in Madrid.
http://www.lease2purchase.com/featuresnbenefits.php


006
if a non-republican is elected the exit tax (Capital Gain taxation)
will increase. (15 to 30%) This not an increase of 2 or 3 points, this
leads to double the C.G. tax !

007

Any feed back experience using the LEASE TO PURCHASE ? or any
analysis ?

Many thanks for your analysis that relates to the LEASE TO PURCHASE


Cougloff

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