Buying a cheap home (Columbus, Cleveland: credit, neighborhoods, income)

[10leej]

So where would be the best place to find an affordable home in the columbus area?

I see from searches on realtor sites that eastern columbus is cheapest but all I hear from friends is that I don't wanna live there.

So what are some other places that don't have homes going for 100k+?

[SWOH]

Franklinton

[Meemur]

Also, the City of Reynoldsburg

If it doesn't make you too far from work, live somewhere other than Franklin or Delaware counties for lower tax rates.

Beware! Ohio has this tax code where you have to pay taxes where you live and where you work, unless they are the same city. That's why a lot of people who work in Westerville or Delaware have moved there.

[Bodycount]

Originally Posted by Meemur

Also, the City of Reynoldsburg

If it doesn't make you too far from work, live somewhere other than Franklin or Delaware counties for lower tax rates.

Beware! Ohio has this tax code where you have to pay taxes where you live and where you work, unless they are the same city. That's why a lot of people who work in Westerville or Delaware have moved there.

Well actually you pay full tax of where you work. Then if your home tax is more then you pay the remainder of that tax.

For example, I live in Columbus and work in Gahanna. Columbus is 2.5%. Gahanna is 1.5%.

Thus I pay 1.5% to Gahanna, then pay 1.0% to Columbus equaling out the 2.5% total.

If I worked in Columbus then I'd still be paying the same amount of tax. Only time it screws you is if you live in a place where tax is cheaper than where you work. So if I lived in Gahanna and worked in Columbus, I'd be paying 2.5% to Columbus instead of 1.5% to Gahanna if I lived and worked there.

[dxdtdemon]

If you work in the western part of the area, perhaps looking at West Jefferson or London might be a good idea. They are both in Madison County.

[Dewddd]

There are neighborhoods in some of the suburbs (like Reynoldsburg, some in Gahanna, Westerville, etc) full of two or three bedroom ranch-style houses -- most built in the 1940s to 1970s era. They are most likely going to sell for near 100k and this would be where you're going to get more bang for your buck, not the east side of Columbus. Some neighborhoods in Columbus offer safer, cheap(ish) housing, the northeast side comes to mind (just nowhere near Cleveland Ave).

[Zen_master]

Originally Posted by Bodycount

Well actually you pay full tax of where you work. Then if your home tax is more then you pay the remainder of that tax.

For example, I live in Columbus and work in Gahanna. Columbus is 2.5%. Gahanna is 1.5%.

Thus I pay 1.5% to Gahanna, then pay 1.0% to Columbus equaling out the 2.5% total.

If I worked in Columbus then I'd still be paying the same amount of tax. Only time it screws you is if you live in a place where tax is cheaper than where you work. So if I lived in Gahanna and worked in Columbus, I'd be paying 2.5% to Columbus instead of 1.5% to Gahanna if I lived and worked there.

Technically that is incorrect. Workers will pay the tax rate that applies where their employer is domiciled. In your case you will pay the 2.5% to Columbus. The part that varies is what you will pay the community where you live which depends on that community's local laws. In your case Gahanna offers a 83.33% credit for taxes paid in another community therefore you owe to Gahanna 1.5%-(.8333*1.5%) = 0.25%. In sum, Gahanna dings you for 0.25% of your income in addition to what you pay to Columbus.

On the other hand, Reynoldsburg or perhaps it's Pickerington, offers a full reciprocity. However, those communities also have a higher income tax rate closer to 2% or 2.5% so if you work there, perhaps you work from home, you're paying more than you would if you worked in Gahanna.

[Bodycount]

Originally Posted by Zen_master

Technically that is incorrect. Workers will pay the tax rate that applies where their employer is domiciled. In your case you will pay the 2.5% to Columbus. The part that varies is what you will pay the community where you live which depends on that community's local laws. In your case Gahanna offers a 83.33% credit for taxes paid in another community therefore you owe to Gahanna 1.5%-(.8333*1.5%) = 0.25%. In sum, Gahanna dings you for 0.25% of your income in addition to what you pay to Columbus.

On the other hand, Reynoldsburg or perhaps it's Pickerington, offers a full reciprocity. However, those communities also have a higher income tax rate closer to 2% or 2.5% so if you work there, perhaps you work from home, you're paying more than you would if you worked in Gahanna.

But that's not everywhere. It's a Gahanna law that you pay them in addition to Columbus. And this is only if you live in Gahanna and work in Columbus. Gahanna just wants more of your money.

It's law that you pay your work location taxes first, home location taxes second (only if they are more than work location taxes).

Local laws could make you pay more as with your Gahanna example.