Is it time to move out of a high tax state?
I have an issue that I never though of until I started looking at real estate in different markets. I'm from IL which is what I learned a high tax state not just for property but for everything.
I inherited the family house a 3 bedroom 1 1/2 bath ranch, my grandfather bought the property, dad built the house and i remodeled after my fathers passing. This makes a decision to leave emotionally difficult.
The numbers $300K+ value, nice neighborhood, park across street, forest preserves nearby, friends all around area from 5 min to over an hour away. Property taxes $10K per year with home owners exemption. I work an hour away, in an area close to Indiana and south of Chicago where housing is cheaper.
I have 4 rentals that have good equity but low cash flow. High taxes cause loss of cash flow. All rentals near work as houses were much cheaper but good rental market.
So I started looking for rentals in Indiana and Vegas and saw taxes 10%-30% of IL for similar houses and values. As I looked I found some nice 3 bed 1-2 bath houses for $130-150K with 1K property taxes. Some with up to 1/2 acre of land by a nice lake. Gas is $0.20 a gallon cheaper in IN then IL on average, so many costs would be reduced.
Looking to retire in 5 or so years looking that moving to IN (15 minutes to work) would save me time, money and property taxes. $8-9K per year. In the 5 years to retire I could have an extra $40K and that saving continues. I could use the extra money form the house sale to fund some cash flowing properties in areas with reduced taxes that I could afford property management.
I'm slowly working on the emotional attachment to my house but wonder if anyone else has made similar choice, and how to worked out.