«

»

When Evaluating Properties: Look at the Property Tax

This past weekend the Chicago Tribune had an article about the taxes that city’s put on their tax payers.

For example the City of Bellwood Illinois, with a population of 19,200 has a debit of $99 million. Have of the property tax bill goes to pay for the debt.

Is seems that some elected official feel it their part to take on debit to benefit the local economy. Which would be fine if the tax payer had  a chance to vote on it. But sadly they don’t.

So what happened. Will according to the article the city (Bellwood) bought up properties over appraised value and they were going to get improvement but they never materialized. They mayor is still the mayor and A consultant was in prison and now is out (in another case). They city administrator is under indictment.

Then what? The money is gone and the city still have the debit. With THE highest sales tax in the state who wants to do business there?

This is where you know the markets. If you are looking for commercial space to lease it would be better to be on one side of the street then the other. Your customers would not visit your store if you sales tax is high then one across the street. That does not include the cost of the space with property taxes high too it is a double whammy.

Some city officials feel a need to spend tax payer Dollars to bring in more business but if it does not pan out the tax payers on the hook while the officials are out and not responsible for the debit to be paid back. The article does come other examples like soccer stadium that don’t make money, or mall being build.

Moral of the story know the market and read about it. They more you know the better you can find places that your  real estate can work a higher rates and attract better tenants.

 

Please leave you comment below and join out Newsletter.

Free image courtesy of FreeDigitalPhotos.net

Share/Bookmark

Permanent link to this article: http://passiveinvestor.com/when-evaluating-properties-look-at-the-property-tax/

Leave a Reply

Switch to our mobile site