Quote:
Originally Posted by golfnutjtl
Could he buy a slice of the neighbor’s property so that he could use his original plans?
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Be careful in places that are hungry for taxes and existing are capped to small yearly increments.
Research accordingly...get it in writing.
Even an hour consultation w/a good RE attorney or two might be worth it.
The value spent on a new addition should be worth it. ie resale or rental income in the meantime. The 1% rule.
https://www.rocketmortgage.com/learn/gross-rent-multiplier
Visual appeal is premier.
Anything additional should be based only on any added value theoretically, but they may re-assess the entire property whenever the footprint of structures is added onto (ie decks morphing into enclosed extensions over time), or new structures created, or the lot size increases.
YMMV locally.
Despite a City law which excepted family transfer of property, plus a previous letter of exemption from the city to Dad, my father's little ancient rental which I received got uncapped and taxes literally doubled. Which equals ten grand plus plus per year. Or a hundred thousand dollar plus per decade. That's a lot of hamburgers.
My money at the end of it.
Their valuation was exceptionally out of normal with neighborhood valuation including the one next door. Fraud.
I had to go before a City review board, State tax tribunal, finally a premier attorney and independent appraiser, the works, which cost seven grand(cheap), before the City finally agreed to normalize back to the higher scale of Fair Market Value.
Over half my affordable rents still go straight to the City...aka other people.
The housing market is 'up' right now but the commercial market is crashing hard and conversions will probably happen.
The best time to build is at low points.