BVC AW Blog

Is there a Property tax bubble? Are some major cities like Atlanta about the verge of total monetary collapse?  Numerous cities and counties around the nation assess home taxes on actual estate based on the “fair market place value” on the property. Several tax assessors in these cities will tell you that the fair market place importance is dependant on the price a purchaser will pay for the asset under typical current market conditions. So the question here’s: what are standard market place conditions? If you look at the genuine estate market place in the town of Atlanta, you are going to notice that most of the homes for purchase available now are foreclosures. It is not unusual to locate a home selling for $100,000, nevertheless with a current tax benefit of $250,000, with annual taxes of $4000-5000. The query is: How can the tax assessor continue to justify  such substantial taxes on a house that isn’t selling for their “tax values”? Is this genuinely fair? There’s no doubt that the city wants money, but the town demands to be truthful to household owners.
 
Many household consumers are being turned off by the very substantial house taxes on these properties. Take as an example a residence selling for $100,000 with a asset tax of $4000. This can be a monthly tax payment of $330. The principal and interest payment on this home might be about $600 per month on a 6% loan. So a residence buyer is expected to 30% or a lot more of the monthly payment towards taxes.
 
Take this real scenario: The residence at 101 Haygood Ave, Atlanta, GA 30315 is presently for sale at $22,000. The tax benefit for this asset was $122,000 in 2007 and won’t be a lot distinct for 2008. So how does the city justify the somewhat higher taxes on these properties? The taxes on this asset are about $2000. So when you take out a 30 year mortgage to finance the property, you are going to be paying more in taxes to the asset than on the principal and interest. Most consumers shy away from such deals once they know what the taxes are.
 
In assessing the taxes on these properties, the tax assessor doesn’t take into consideration the truth that most of the homes for purchase inside the neighborhood are all foreclosures and distress sales. So the tax assessor cannot proceed to ignore these sales. The assessor will simply not have any “regular” product sales in these Atlanta neighborhoods inside the next 2-3 years. They is going to be forced to go with the actual purchase figures, irrespective in the form of sale. You might wish to discover more info at this site dealing with Okaloosa Tax.