Property tax increases are a popular method used by municipal and county governments to raise revenue, but they can also have a big impact on the local real estate market. For example, a slight tax increase may drive demand for local homes down, a shift many might characterize as “negative.” But a clear understanding of local market conditions can help real estate professionals, buyers, and sellers take advantage of any new tax scenario and get the most for their property investment.

In most cases property taxes are levied as a percentage of a home’s value, or an acceptable representation of the home’s value. Governments generally assess homes at 100 per cent or less of their estimated market value in an attempt to keep taxes affordable. By this method, local real estate trends are kept at arm’s length, and property owners don’t have to worry as much if a neighboring home sells for million. Property taxes often generate the majority of a city or county’s annual operating budget for hospitals, school systems, waterworks, parks, libraries, police, and other expenses.

Cities and counties can use a variety of taxation strategies beyond an outright increase to control revenue, stem urban sprawl, or change the local real estate market. One of the more common strategies for this is land value taxation, which separates the value of a property from its improvement value, applying a gradually lower tax rate as more improvements are made to a property. Using this tax rule, developers can make significant improvements to a property, like building an apartment complex, while still being able to afford the taxes. This method is commonly used to make high density housing more economically feasible in downtown areas. Current-use valuation is another familiar property tax control, whereby properties are valued only according to their current use, and not potential uses – this is often used to protect large undeveloped areas like farms from urban sprawl.

Some property taxes are also limited to a certain cross section of homes, or homes above a certain market value, in order to protect affordable real estate. One example of this was seen in summer 2007 in Ulster County, New York, where a proposed real estate transfer tax was only meant to apply to homes above the median sale value for the area. Values here were destined to shift as buyers searched out properties below the median price range.

Every property tax change is a new marketing opportunity for real estate professionals and their clients. The trick is knowing what to expect from different tax strategies, and how long those effects will last.

Ontario’s current property taxation system requires the value of each taxed home to be assessed. Allegations that the Municipal Property Assessment Corporation has made unfair or erroneous evaluations of the values of homes recently led the Ontario government to freeze property values until after the general election of 2007. In 2006, Ontario PC MPP Tim Hudak proposed a 5% cap on the annual increase in the deemed value of homes. PC leader John Tory has made it clear that the 5% cap is to be a major plank in his party’s 2007 election platform. In this first of a two-part episode of FPTV, Freedom Party of Ontario leader Paul McKeever examines Hudak’s proposal, and explains how it would cause problems without addressing the fundamental problems associated with property taxation.
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Due to plummeting home values and infrequent tax assessments, many home owners across the nation are finding themselves frustrated and annoyed by their property tax bills this year. Though the nation is suffering from a recession, many home owners’ property tax appeals are way up this year; in fact, appeals have been skyrocketing in recent years, since the beginning of the recession. In some areas of the country, appeals over assessments are 250% of what they were pre-recession.

A big part of the problem is that property taxes are based on home value assessments that are no longer valid. Property values are only assessed every few years usually; sometimes cities go over a decade before reassessing values. Due to the fact that the nation has been in a recession now for a few years, most home owners’ property tax rates are based on pre-bubble popping values. Experts estimate that it generally takes about three years for housing value changes to show up as a change in home prices.

Another problem for home owners paying high property taxes is that their tax bill isn’t always indicative of the price of their home anyways. Some municipalities bill residents based on how much money the city needs to bring in yearly; so, since the country is in a recession and many cities are struggling with their budgets, some property tax bills have actually been higher to offset that.

Regardless of the reasons for an increase in property taxes, home owners are angry and confused. When the entire country has been in a recession for a few years now—and still is—it’s hard to see the justification that any municipality could offer for an increase in assessed home values; many home owners feel like their municipal governments are participating in little more than a cash grab. While many of these home owners are likely to be appealing their tax hikes as well, it’s difficult to see how easily changes might be awarded when the rates are less tied to the value of the home.

If you think that your property tax bill is too high this year, there are many lawyers who are taking on a lot of business with property tax appeals. Home owners can fight their property tax bill on their own, of course; contact your local municipal government or town hall for information about how you can appeal your property taxes if you think that you’re being unfairly charged.

Real estate is a phenomenal investment, and anyone can get a piece of the action – regardless of their financial status.But not just any investment will work – you have to know what the
best property to invest in is, and how and when to purchase it. Here’s how to purchase a house for the delinquent property taxes and as little as a few hundred dollars out of pocket.

Isn’t the simplest way to purchase a house for the delinquent property taxes just to bid at auction? No, no, no. There is stiff competition at tax sale, and the bidding will never end low enough for you to profit. Also, how smart is it to buy property you can’t inspect? That’s right. No viewing properties before you bid on them! The last straw? Owners usually pay their taxes off before you get it.

Forget tax sale. That all doesn’t affect you. You’ll purchase a house for the delinquent property taxes an entirely different way. How? You’ll make a boatload of cash by simply buying from the owners at the far end of the redemption period. The owners that are still unpaid at this point are probably not planning to redeem. These owners will make you a lot of money.

These are often absentee owners that just want the property gone. Getting these deeds is as easy as simply asking for them. Tell them it’ll only take a few minutes to sign the paperwork, and you’ll pay them 0 for their time. It works like a charm. Once the property is yours, you can decide whether to keep it, or sell it – and walk away immediately with thousands in pure profit. To purchase a house For the delinquent property taxes is really as simple as that.

If you’re serious about buying property, this is the way to do it. It’s the right time to dive into the business. With the astonishing number of foreclosures in the last several years, now is a better time than ever to learn to purchase a house For the delinquent property taxes.

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