Property Taxes Are Going Up – Prepare! Post 84

Falling Home Prices Have Little Effect on Property Taxes

Real Estate Crash By Miodrag Trajkovic

It would certainly seem as though there should be one advantage to dropping home prices. Many homeowners assumed that when the value of their homes fell, their property taxes would as well. This has not been the case in many areas; however.

In some cases; …their property tax bills … have actually increased. This has been quite a surprise for homeowners as they struggle to understand why they are paying more in taxes on homes that are not worth as much as they were just a year ago.

One of the biggest problems, especially in Nevada, is the fact that property tax increases were capped during the housing boom. During this time home values skyrocketed rapidly. Today, the values of homes in these same areas are falling; however, the decreases have not actually been enough to compensate for the increases of just a few years ago. While declining property values have certainly been a problem, they simply have not decreased enough in many areas to provide any relief from property tax bills.

As the rate of defaulted loans and foreclosures continue to soar in many locations, numerous counties have discovered that the rate of unpaid properties taxes is also on the rise. The metro Detroit area, in particular, is experiencing a record high rate of unpaid property taxes. The lack of jobs and weak economy in the greater Detroit area are considered to be the primary factors contributing to the housing crash in the area.

Even if property owners are paying their monthly mortgage payments on time they could still be at risk for losing their properties through foreclosure if they fail to pay their property taxes. In such situations, the county would then take control of the home and auction it off to pay the balance of taxes owed. Counties in the Detroit area are currently struggling to recoup hundreds of millions of dollars in unpaid property taxes.

See full article at: http://ezinearticles.com/?id=1150107

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Coach Mitch’s REFLECTIONS

Little effect on property taxes???

Frankly, the opposite is probable. Just give it a little time, like one year, and you will see that many towns will have to raise property taxes in order to pay for needed town services as well as legislated mandates. The high costs of big government do not go away just because the taxpayer cannot pay. When any savings accounts that a town may have is gone, used to pay for obligations and not raise taxes, then the taxes will rise.

What will happen – Bank on it!

In the event that the economy continues to sputter and government continues to prey on its citizens, there is one and only one outcome; more and greater hardship. The middle class will continue to be squeezed, the poor will cry louder, the “needs” will outweigh the ability to pay, and taxes will be raised as inflation continues to reign. Disaster waits.

Towns need money

Your property taxes will be going up. There will be some gimmicks put in place to offset the increases, but taxes will still be up – significantly up. In my own town, there are expenditures in place that guarantee a 100% increase in town property taxes within six years; that’s a 17% increase each year. What do you think that will do for property values?

I asked an interesting question

During the last election cycle, I was a candidate for County Legislature. Reducing high property taxes was my major theme. Several mothers were upset that the local school district was trying to cut costs by eliminating a school programs. I asked, “According to the statistics, a significant number of townspeople will lose their property to tax auction this year. This school program will cost enough to displace 2 widows, who are at a time in life when they need their family, their friends, and the support of the town they helped to build. Since we cannot afford both, which is more important?” Not a single citizen cared to answer. We want our cake and we want to eat it, too. I lost the election. Apparently, citizens don’t want the hard questions to be asked.

Where does it end?

That is the future we are facing; a reduced quality of life, here, in America! The reason is bloated government. At least 33% of government expenditures can be attributed to waste, fraud and abuse, according to Citizens Against Government Waste. The level of nonsense that our governmental leaders are allowing and promulgating should cause them to be ashamed. It is as if our national symbol is no longer the stately eagle, nor the mighty grizzly, but rather Porky the Pig. This can only end badly.

What to do? – Gather hard assets.

In times of financial stress, hard assets have always been the best store of value. Silver, gold, precious gems, fine art, collectibles, have all risen in value in these times, just as the paper money has lost its value. Real estate is the greatest store of value, IMHO. While gold and gems are portable, where are you going to go? If America is lost, there is nowhere else. Oh yes, if you are storing gold, Executive Order 6102 was signed on April 5, 1933 by U.S. President Franklin D. Roosevelt making it not legal to own gold. Think it can’t happen here? It already has happened, more thane once.

Real estate is the best hard asset

No matter what, people need a place to live, and they will always want to own their piece of the pie. If you can make that possible, then you will be safe, no matter the economic circumstances; at least and until private property is outlawed. At that point the effort to “socialize” US will have been accomplished.

Coach Mitch’s “Ridiculously Simple System…” shows how to invest in Tax Delinquent Property. It is safe and easy. It is profitable and desired.

Tax Delinquent Property investing is safe because you will normally only pay about 10% to 40% of the Fair Market Value for the property. By purchasing at 40% of value, you almost can’t help but make money. Tax Delinquent Property is the only investment vehicle that I know of where you can get these kinds of values, consistently. Can you go into the stock market, each day, and find stocks that can be gotten at 40% FMV? No, of course not.

There are many advantages to buying Tax Delinquent Property. Download my pamphlet, “10 Ways Tax Delinquent Real Estate Is An Extraordinarily Profitable Way To Invest.”

See Coach Mitch’s “Ridiculously Simple System…” ™ for details.

Anchors away,