Increasing Property Tax and Assessed Value? (Seattle, Bellingham: low income, insurance, assessor)

[Ultrarunner]

Received notification of new values which is up double digits...

Is property ownership sustainable in the long term for those on fixed retirement income?

I know there is a mechanism in place for those that qualify to limit or freeze.

For those that don't do you move or keep working in your golden years?

[Ruth4Truth]

Originally Posted by Ultrarunner

Received notification of new values which is up double digits...

Is property ownership sustainable in the long term for those on fixed retirement income?

I know there is a mechanism in place for those that qualify to limit or freeze.

For those that don't do you move or keep working in your golden years?

Or both. I had a friend who was facing this. He lived in the home he grew up in, in Seattle. He was paying off a mortgage he took out when his brother required him to buy out the brother's share as their inheritance. So he had to keep working. Plus of course, there were property taxes to pay, which kept going up. He finally faced the fact,that he'd have to move, and find an alternative residence that offered workshop space for his business. I found some buildings in West Seattle that offered combined live-work space that were very affordable.

Unfortunately, he passed away from illness before he could initiate anything relating to a move. But I can't imagine he'd have been able to clear out his place of all the accumulated stuff. This can be an issue for seniors facing the disruption of a move due to property tax hikes. Imagine a lifetime of accumulated things, including for some couples--the extra furniture in guest rooms/adult kids' rooms, and having to downsize all of that. Clear out clutter, if any, and so on.

Depending on people's age at the time, it could be too stressful, unless they can get family help.


When was this mechanism put in place, for people who qualify for limiting or freezing the tax hikes? This is the first I've heard of it.

[mojo101]

slowly ridding household belonging,either donate to Salvation Army or local charity or sell on EBAY or just trash it.
Not long ago our Salvation Army is asking for slightly used items,they will come and pick them up.

[StealthRabbit]

WA property tax relief requires a very low income. IIRC, the tax reduction is a deferral that is liened against your estate, (with interest) and collected upon your demise.

[rkcarguy]

Originally Posted by StealthRabbit

WA property tax relief requires a very low income. IIRC, the tax reduction is a deferral that is liened against your estate, (with interest) and collected upon your demise.

Correct, seems predatory to me.
My grandmother had both SSI and a pension, house paid off, yet was $4000/year over the income limit for a tax break and was losing over $1000/month due to $7,200/year property taxes and $200+/month taxes/fees levied on various utilities. Her home was built new and furnished in 1994 for a total of $180K. Luckily? She passed last fall and still had about 18 months worth of savings left.
We had this discussion at work, only two high earning co-workers who inherited homes and big money were going to be able to stay, the rest (over 50 people) aren't going to be able to retire here. Move out or work until you die.

[Hemlock140]

Our property tax is now at about $12,000 here in Sammamish, and I plan to retire late this year. With the 60% reduction in income, but still making way too much for any kind of relief, we will be moving to a less expensive area. We will also downsize, will be looking for a smaller house on more land. What's left of our mortgage is $1,400/month, but the payment with tax and insurance is $2,600 now. So far in the last two years 4 of our neighbors that bought new here in the late 70s have retired and moved to places like Chelan, Anacortes, Bellingham and Gig Harbor.

[rkcarguy]

The Bellingham area still has a lack of supply, despite its plummet to the bottom 4% on crime and safety.
Anything that is a liveable house in the county on 2+ acres is north of a million dollars despite 7% interest rates. 6 of 10 buyers are paying cash.
Hemlock, that's silly, but not surprising. Our house isn't even landscaped yet and property taxes are already 1/3rd of the payment.

[Wile E. Coyote]

Originally Posted by Hemlock140

Our property tax is now at about $12,000 here in Sammamish, and I plan to retire late this year. With the 60% reduction in income, but still making way too much for any kind of relief, we will be moving to a less expensive area. We will also downsize, will be looking for a smaller house on more land. What's left of our mortgage is $1,400/month, but the payment with tax and insurance is $2,600 now. So far in the last two years 4 of our neighbors that bought new here in the late 70s have retired and moved to places like Chelan, Anacortes, Bellingham and Gig Harbor.

I would not mind moving to those places in retirement. You could take up sailing.

[StealthRabbit]

Originally Posted by Wile E. Coyote

I would not mind moving to those places in retirement. You could take up sailing.

Sailing has been pretty nice in Greece the last few months. It's not too expensive to live here. (But my 90 days are up).
I actually prefer Croatia (cheaper yet).

My monthly WA property taxes are 2x my highest ever mortgage, whether I'm home or not. Hotels do the housekeeping and laundry and provide breakfast for the same price as my WA property taxes. Assessor needs to step-it-up a bit.

[Hemlock140]

Our notice from King County arrived yesterday, and I was amazed to see that it actually reflected the current market reality, with the assessed value dropping from $1.35 million to just $1.06 million. Unfortunately, the tax bill based on the higher amount has already been rendered and the first half paid in April.