<p><a href=“Parents, the Children Will Be Fine. Spend Their Inheritance Now. - The New York Times”>Parents, the Children Will Be Fine. Spend Their Inheritance Now. - The New York Times;
<p>Mad, I agree with you. The rich will find ways to save money. It will reduce incentive for people who want to leave a little bit to their heirs.</p>
<p>Actually, dstark, our taxes still went up about $1500. I’m sure they would have raised it more if they could, but each taxing district can only raise the pot of overall taxes collected by 1%. I think we were unfortunate that they chose to raise ours more than others because of a similar house selling for a high price. Thinking of disputing it, but you never win these things.</p>
<p>1% rent increase is ridiculously low.</p>
<p>Busdriver11, I would not be happy with a $1500 increase. I like Calif’s prop 13. </p>
<p>We do have a very high income tax. We dont have an estate tax. Retiring in your state is a turnoff with escalating prop taxes and the estate taxes.</p>
<p>The 1 percent number is too low. It is ridiculous. With rent control, you cant raise rents at the inflation rate. You have to wait for a tenant to leave. Older tenants dont leave. If you have 1 bedroom units, you would rather rent to young people. Hope they get married and have kids and leave.</p>
<p>On the positive side if you own rentals, the cap rates are ridiculously low. People pay a big premium to buy here.</p>
<p>I was told if you have 20 units or more, there is enough turnover that the rent control has a smaller impact. </p>
<p>If your unit is new, renters pay through the nose. My daughter and her boyfriend pay $3300 a month for a 1 bedroom. No rent control on newer units.</p>
<p>I would never allow pets if I rented a property. We lived in a rental for 9 months while we built our house. The prior tenants had a puppy and apparently allowed the dog to pee at will on the family room carpet. We had it cleaned twice, once at the landlord’s expense and one at ours and it never stopped smelling. It apparently had seeped into the sub-flooring and would never go away. Ugh. It was so gross. I wish we had had other decent options at that time, but other than that room, it was in a good neighborhood and a hood house. Except for the no insulation at all it seemed…LOL. </p>
<p>
@notrichenough - Are you looking at 30% of gross income or of net income? </p>
<p>My dh and I disagree on leaving money for the kids. My brother and I begged Mom and Dad to spend their own money and have a good time, etc. but they were the tightest tightwads on the planet. We stand to inherit well. That danged raised-in-the-Depression generation. While I am thankful, of course, I still don’t think folks “owe” their children this luxury. Dh is determined that we will leave the boys an inheritance. Time will tell, of course.</p>
<p>People certainly need to consider all aspects of taxation where they choose to retire. In Washington, it works well for someone who has a high retirement income, but lives in an inexpensive property. All of our condos have property taxes less than 2K per year, so one can choose to live with much lower taxes. It is unfortunate to be taxed out of your home, I wish we’d pass the protections CA did. Estate taxes kick in at a little over 2 million, but you can pass your exemption to your spouse, so a little over 4 million for the both of you. Maybe we need to move to CA right before we die, but that can be hard to time. You never know what your legislature is going to do with estate taxes, they’re always changing that.</p>
<p>$3300 a month for a one bedroom is really high. My kid pays about $4700 for a 3 bedroom, with 2 roommates in the financial district of NYC. I think he’s getting a deal.</p>
<p>We plan to live well but sometimes there will be money left over. We rather not give to government.</p>
<p>So I didn’t dare asking my sister about her new home, but I did email the mortgage person and she said my sister did sign the contract to the new house. Whew! I thought she was so stressed that it might not happen. But I promised my husband, I won’t call her, won’t worry, nothing. Zen seems to work out sometimes.
Her little condo is 3/4 of a million. Crazy price for this neighborhood.</p>
<p>There was an article that the Chinese are bringing their money to the US because of the American government.</p>
<p>Seattle real estate is booming. Cap rates have collapsed in Seattle.</p>
<p>What is cap rates?
The Chinese are all over my neighborhood. There is a Maserati and Porsche in the garage too for the kids.</p>
<p>A little condo for 3/4 million? Crazy.</p>
<p>Well, I call it condo, but the builder calls it single family home. Tiny yard, really tiny, no parking in the front garage, 3BR, 2.5 bath, starter home.</p>
<p>
</p>
<p>Because I have 2 kids from my first marriage, and two from my second, it gets complicated. I don’t know what my ex’s plans or resources are, but it is likely to be less of an inheritance than my now-wife will leave. Otoh, those kids are also older and will, at any point in time, probably be more established than the young’uns. </p>
<p>For all of the kids, they inherited smarts and a sense of humor, a work ethic, education to the extent they wanted it. They will 99.9% likely not be asked to support Mom or Dad in the future. The bank of Mom and Dad is open for discussion if they get in a bind. They probably will be left money after we die, possibly a large amount, but I don’t feel an obligation. </p>
<p>We don’t plan to leave any inheritance to DS but, because we can’t predict the time of our deaths, there may be something left over for him. He knows that he will get whatever is left, but we aren’t planning to preserve principle in retirement. OTOH, whatever he doesn’t use of his 529, we will roll over into an investment for him (sans the hit for non-education withdrawal). We have provided him with the best education he is able to consume. Now he has to use it and make his way, just as we did.</p>
<p>VaBluebird you could take half what you inherit and put it in trust for the kids. That way you walk the walk on your beliefs. Kids do not 'deserve" an inheritance and your parents should have spent their money. You get the benefit of 1/2 what they should have spent while also taking into account your spouses views.</p>
<p>@patsmom - 30% of gross, but at that income level you are paying next to nothing in taxes anyway, so it is pretty much the same as net.</p>
<p>Thanks. I’m never sure which figure to use.</p>
<p>I really like your list of rules. They’re pretty much the same ones I go by, too. And after 36 years of landlording, I completely agree that your Rule # 1 is the most important.</p>