Should I combine my 2 properties to save money and increase equity?

[wkhhw]

What is the name of your state (only U.S. law)? South Carolina

Hello. I am trying to figure out if I should combine my 2 properties or not. My home is on 8.1 acres and was last appraised at $340k. Several years ago it was $499k. The property beside us came up for sale at a good price. It has a 2200 sqft brick home (In need of major repair) siitting on 5 acres. We refinanced our primary residence when it was appraised at 499 and bought the property beside us fo $80k. At the time that still left us with $40 in equity.
The home is not livable and we are paying property tax on both. What is odd is that the second house is being taxed at a higher rate than my promary residence. It is costing us $2000 out of pocket every year. I did have the tax assesor reasses it and he said he was going to list it as storage and bring the tax value down from $179k to $130k.
I feel like I am not managing this correctly and it is costing me money that I could save. Should I combine the properties and refinance the entire property? Would that lower the taxes? Is there anything I can do to not be charged so much on the second house since it is not livable?

Thanks
Wade

 

[nextwife]

Raze the structure and make it a land value only property? That also will reduce insurance costs.

 

[FarmerJ]

Wade seriously , were you going to rent the other home out at some point ? so I take it that you now own one home and its land free and clear ? As i see it here you go. 1 the home and land you bought is not getting a tax credit for being lived in by its owner like a homestead property tax credit so it likely was being taxed as if it was a rental. 2 if you have the land combined and re fi the whole deal part of your property taxes wont likely change too much since they are based on structures and land ( if it was just a land only addition to the lot you now live on then id say combine them because its likely to drop the total of the two just a bit ) 3 , you realize that if push came to shove and things got real real bad as long as the two lots are totally individual if you had to let the orig house and land go via say foreclosure you instantly would have some where else to live. 4 you certainly are free to fix it up enough that you could rent it out and if by chance you find you want to use some of that houses land your free to spell out in a lease a smaller lot size for tenant to have for use EG , you want to raise hay so you can get a horse and instead of buying hay , you might be able to grow enough hay now no problem between the two parcels if say other lot as is is has 8 acres like yours but house and garage are alot closer to road , so you can easily fence off 5 acres leaving 3 for tenant to use then you can specifiy in your lease that tenants leased areas inc the front 3 acres that are not fenced. ( then you not only collect rent for house and smaller part of yard but get to grow your hay

 

[wkhhw]

Thanks for the replies. Yes the older house with the 5 acres I own outright. I have always looked at it as a safety net incae something went wrong and I had to sell my primary residence. The house needs a lot of work but is fixable the budget just does not allow for it right now. We had considered tearing it down but that was going to cost about 10k. Then we tried to sell it cheap for someone to move it. Several were interested but the cost of raising it and moving it was to great for them.

So if I leave the 2 properties seperate. Is there anything I can do that would lower the yearly taxes? That 2k in January hurts!

Wade

 

[nextwife]

Thanks for the replies. Yes the older house with the 5 acres I own outright. I have always looked at it as a safety net incae something went wrong and I had to sell my primary residence. The house needs a lot of work but is fixable the budget just does not allow for it right now. We had considered tearing it down but that was going to cost about 10k. Then we tried to sell it cheap for someone to move it. Several were interested but the cost of raising it and moving it was to great for them.

So if I leave the 2 properties seperate. Is there anything I can do that would lower the yearly taxes? That 2k in January hurts!

Wade

Auto Pay 1/12th the 2k into a savings account monthly.

 

[FarmerJ]

if the roof is not leaking your allways free to do it other way , move into the one that needs work , and rent out your original home for a couple years or so as a way to not only get income but free up funds for the second home . I know the taxes stink just budget for it other wise.