Property taxes are going up in Philadelphia. Is that really smart?
Raising property taxes is of course, one of our main soap box issues on this blog. Not only are property taxes too easy to raise in many places, we think property owners are reaching a saturation point.
We can’t predict where that saturation point will be, but we can see signs of unrest. Let’s look at it from a business stand point.
Real estate investors and landlords must bring in enough revenue to make their bottom lines. Rents must be high enough to cover expenses but not so high to drive your tenants away and you out of business.
There are improvements we need to do to some of our properties right now, and we can’t because we are paying very high property taxes here in Davidson County. Perhaps our city stressed out city leaders don’t need reminding about our recent ‘500 Year Flood’, but we’re stressed out too.
Which brings us back to Philadelphia. A 9.9 percent jump in property taxes is huge. And can Philadelphia property owners really believe it will be for only two years. Please…
Here’s the story about the tax increase
Here’s another bit of bad news from Detroit.
Mayor Dave Bing is planning to demolish 10,000 structures, one of which is Massachusetts Gov. Mitt Romney’s childhood home.
Maybe this is one of the tragic things that can happen when people can no longer pay high property taxes because of the economy. Current news is that nearly 30% of the city’s housing stock is vacant.
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