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Updated almost 5 years ago on . Most recent reply
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Tax Deeds in Charleston
Hey Everyone!
I'm an investor who has some midwest properties but would like to buy closer to family. I was wondering if anyone had any experience in acquiring properties via tax lien/deed auctions in SC, also are HOA fees only a Myrtle Beach thing or is that more or less statewide? will I have to worry about that in most of Charleston? I see SC is one of the states hit the least by corona, are people in business right now? Looks like businesses in NYC are just starting to prepare to come back.
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I haven't done any Tax auctions but i am aware that they are subject to redemption by the people who lost the property for a year or two, make sure you know how long and what interest rate they would have to pay/financing you can get before bidding. it also may make a flip less do-able.
Also read up on "Heirs land" as a lot of these end up on the tax auction rolls and can be troublesome. Basically, its land owned by descendants of former slaves that may have passed through generations without any deed change, so dozens of potential heirs may have claim to it.
Erik is correct on HOA's but technically incorrect on taxes. Owner occupied homes can assessed at a lower rate (4%) and be exempted from school operating taxes. All other non-industrial properties are assessed at 6% regardless of where the owner lives. The net effect though is that an owner occupied home will pay about 1/3 of what a rental home will pay. Also, a transfer of ownership triggers a reassessment of the property a year after the sale and wipes out any caps or exemptions that may have been in place, so don't assume prior taxes will be anything close to what you would have to pay.