As real estate prices continue to fall in the residential sector, more and more homeowners are hoping to cut their losses at least a little by cutting their property taxes as well. In fact, in states like New Jersey, the number of appeals has tripled in the past four years and, in many areas, the volume of appeals is expected to go even higher[1]. Property taxes are based on the “real value” of the property, meaning what it will go for on the open market (in theory). However, most local governments do not actively lower assessments without some prodding from homeowners, which is why it is so important to appeal your property tax assessment if you believe it is too high. Factors that might contribute to a decrease in the value of your home include short sales and foreclosure sales in your neighborhood and low-priced homes in the area.
The deadline for appeals on property taxes is April 1 in most areas of the country, although there are some exceptions. County governments are concerned by this increase in appeals because it places already strained local budgets in jeopardy and if these appeals are successful – as many are likely to be – property taxes could go up in the future. What does this trend mean for tax lien and tax deed investors? It could be positive or negative. When property taxes go unpaid, then the opportunities to invest increase. Higher property taxes could lead to more unpaid property taxes. However, most investors are not actively hoping for people to lose their homes, as they agree that there are plenty of opportunities for profitable investing in this arena without wishing others ill.
Do you think that your tax lien investing business will benefit from these new trends in property taxes and property tax appeals?
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[1] http://beta.courierpostonline.com/article/20110321/NEWS01/103210336/1006/Appeals-surge-on-property-taxes?odyssey=mod|mostcom
I think tax lein investing should be outlawed, as well as property tax. Fire all public workers except very few. Anyone facing tax foreclosure should burn their house down and shoot to kill.