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DynamicTrends.com
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Unfair Property Taxes and Buying a Home NOW |
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Any one who is considering buying a home right now really needs to reconsider and here’s why:
Interest rates are still way too high in comparison to the amount of liquidity that’s been pumped into the market by the FED. There is plenty of cash available, but banks are unwilling to loan it out at a fair price because now they know that the government can step in and arbitrarily manipulate interest rates that banks can charge. Think bailout here. Another reason they are less willing to loan money is because of the huge losses they have already experienced due to the real estate crash. Another reason is that property taxes are based on the previous year. Because of this, taxes you will pay will be based on last year’s value, but as we all know, home prices have been falling for almost two years and will continue downward for some time. The only sane way to approach the situation when making an offer is to offer FIFTY CENTS ON THE DOLLAR. That would adjust for the falling values, the higher interest rates and the unfair property taxes. If you’re smart, you MUST follow this guideline, because believe me, once you sign those closing documents, nobody is going to care about you and your overpriced and overtaxed home especially the local taxing authority that stands to lose millions in revenue if they did the moral thing. The bottom line here is that you must protect yourself, because nobody else will. The fairest thing that the local taxing authorities could do is to call for a moratorium on property tax increases for a five year period. That would equate to the 2.5 years that homeowners were overtaxed and 2.5 years to adjust to appropriate levels of taxation. By Michael Scoglietti
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