Local rent inflation (by BRAD 20,000 [IN]) Dec 4, 2022 1:42 AM|
Local rent inflation (by Ray-N-Pa [PA]) Dec 4, 2022 8:40 AM
Local rent inflation (by RB [TN]) Dec 4, 2022 8:57 AM
Local rent inflation (by don [PA]) Dec 4, 2022 1:52 PM
Local rent inflation (by BRAD 20.000 [IN]) Dec 4, 2022 3:15 PM
Local rent inflation (by zero [IN]) Dec 4, 2022 7:22 PM
Local rent inflation (by Ray-N-Pa [PA]) Dec 5, 2022 6:37 AM
Local rent inflation (by S i d [MO]) Dec 5, 2022 9:34 AM
Local rent inflation (by T [IN]) Dec 5, 2022 10:19 AM
Local rent inflation (by Pmh [TX]) Dec 5, 2022 7:43 PM
Local rent inflation (by zero [IN]) Dec 6, 2022 7:01 AM
Local rent inflation (by T [IN]) Dec 6, 2022 11:46 AM
Local rent inflation (by Jennings [IN]) Dec 6, 2022 12:52 PM
Local rent inflation (by zero [IN]) Dec 7, 2022 8:49 AM
Local rent inflation (by T [IN]) Dec 7, 2022 7:25 PM
Local rent inflation (by zero [IN]) Dec 11, 2022 6:39 AM
Local rent inflation (by T [IN]) Dec 11, 2022 7:52 PM
Local rent inflation (by zero [IN]) Dec 13, 2022 7:08 PM
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Local rent inflation (by BRAD 20,000 [IN]) Posted on: Dec 4, 2022 1:42 AM
Itís a spiral.
Locally, property taxes on rentals are based on the rent being charged. Officials worked up a GROSS RENT MULTIPLIER for each neighborhood based on retail home sales and rents in that neighborhood.
Meanwhile, the govt almost doubled the value of the land which was an instant tax increase. Retail home sale prices also soared, making the multiplier higher.
Because the taxes went up we needed to raise rents just to stay even.
Now as they examine this yearís increased rents the taxes will go up based on the new numbers.
A spiral. The machine that calculates the tax raises the tax which causes the tax to up up again. A never ending Spiral.
Local rent inflation (by Ray-N-Pa [PA]) Posted on: Dec 4, 2022 8:40 AM
GRMs are one of the worse methods to value anything real estate. So am I surprised that government is using any rule of thumb at all?
It is a handy tool to inflate taxes, but I would never use to calculate what I would pay for anything. --24.101.xxx.xxx
Local rent inflation (by RB [TN]) Posted on: Dec 4, 2022 8:57 AM
Its a racket - Meaning scam or swindle. --24.183.xxx.xxx
Local rent inflation (by don [PA]) Posted on: Dec 4, 2022 1:52 PM
Re-assessments are supposed to be revenue neutral overall. If the total assessments city-wide go up, the rate is supposed to come down in proportion. Unfortunately, in some places (like my city of Phila.) that does not happen and increased assessments act as an undeclared tax increase. --73.141.xxx.xxx
Local rent inflation (by BRAD 20.000 [IN]) Posted on: Dec 4, 2022 3:15 PM
Our local govt brags they have not increased rates in years, ďVote for me!Ē
But the assessments have increased dramatically, thus bringing in more tax money.
Local rent inflation (by zero [IN]) Posted on: Dec 4, 2022 7:22 PM
This year when I disputed the increases on almost all of my doors I explained that I didn't jack the rents up astronomically like so many others did in my area. I explained that I am in the business to make money, but not to rip people off.
I could have, and maybe should have, sold off a few of my SFHs and made a killing. I decided I wanted to stay in it for the long haul though.
Not sure if it helped, but every one of the disputed increases was dropped. The only down side was my primary residence went up and I couldn't complain too much or look like I was just complaining about everything.
Still worth it tho. --107.147.xx.xxx
Local rent inflation (by Ray-N-Pa [PA]) Posted on: Dec 5, 2022 6:37 AM
Hmmmm How do they reassess the owner occupied units? It might be viewed as targeting just one niche of real estate and not the entire real estate market. This could probably be challenged if the LLs could get organized. --24.101.xxx.xxx
Local rent inflation (by S i d [MO]) Posted on: Dec 5, 2022 9:34 AM
It's not supposed to be a spiral. The Govt simply raises taxes, and the rich landlord is supposed to eat the increase with a lower income...
That's how the vast majority of the population thinks this works: raise taxes on "the rich" who will docilly sit by while politicians pick their pockets. It never ends up working that way. The rich are clever and have access to resources to find strategies to reduce their taxable income, while the poor and middle class who don't want to spend the time, money or energy finding ways to protect their income end up paying the lion's share of the "free" stuff that was supposed to be paid for by taxes on the rich.
I don't know how many times the cliche "There is no free lunch" has to be repeated, but apparently at least once more because some people think they can vote their way to prosperity.
Local rent inflation (by T [IN]) Posted on: Dec 5, 2022 10:19 AM
The only thing I learned from the assessor... charge the highest rent you can. Be the high # in the GRM calculations. My local assessor throws out the low #'s (admitted to me) and calculates it. Assesses your property based on the average.
Local rent inflation (by Pmh [TX]) Posted on: Dec 5, 2022 7:43 PM
here in TX we can dispute appraisals- you canít do (??) --107.115.xxx.xx
Local rent inflation (by zero [IN]) Posted on: Dec 6, 2022 7:01 AM
Rentals are topped at 2% and owner occupied is topped at 1%.
I didn't dispute it because I had the taxes down to poverty level while I was building/rehabbing the property. I got done, got my occupancy permit and moved in. They caught up the next tax cycle. While I didn't like paying more taxes it was a fair assessed value considering.
Next year when it goes up a lot I will dispute. --107.147.xx.xxx
Local rent inflation (by T [IN]) Posted on: Dec 6, 2022 11:46 AM
PMH- local assessor sends out an assessment in May, have to June 15th to appeal. Last year, there was no way I could fight it. Recent sales data showed much higher prices. GRM, that's the assessor data and hard to fight. With that said normally the GRM method lowered the assessment. Usually my best argument is their own assessments. Example: my 4 unit was assessed at 239k, one straight across the street and identical building (just poorly managed and lower rent) was at 179k. --170.203.xxx.xxx
Local rent inflation (by Jennings [IN]) Posted on: Dec 6, 2022 12:52 PM
Zero, rentals in Indiana taxed at 2% assessed value and homesteads at 1%. However on a $100K assessment, homeowners get $45K homestead exemption plus mortgage exemption. etc. so at the end of the day landlords are paying $2,000 tax (2% of $100K) and homeowners paying around $500 (1% 0f $50K). Most unfair thing about Indiana taxes. --68.38.xx.xx
Local rent inflation (by zero [IN]) Posted on: Dec 7, 2022 8:49 AM
T: I have five duplexes all identical, in the same town. Three on one block, two on another. Every single one of them is assessed at a different value. I have asked how that is, but get the run around every time. I just fight it and get it lowered a little each time.
Jennings: I hear you on the unfair part. Cost of doing business doesn't help with the sting. I think the mortgage exemption is maybe 3k. I no longer have a mortgage. Wish they allowed an exemption like that for rentals.
I was really ticked when they stated the caps were going in place when they raised sales tax to 7%. Yet there was a year gap so the rentals assessed higher and the sales tax was already raised. --107.147.xx.xxx
Local rent inflation (by T [IN]) Posted on: Dec 7, 2022 7:25 PM
zero- keep appealing to them on the duplexes. One year I had a 50K spread on a 8 unit (identical). I appealed, complained.. asked for a little common sense. 8 months later, they hired an outside appraiser and came up with identical assessments. Fast foreword 3 yrs, they are starting to creep apart again. But currently only like 5k spread....
Mortgage exemption is 3k. Homestead is 45k. You also have a veteran/armed forces one I believe. Either way, rentals and commercial properties get hit. Our local school distract passed a referendum. Instead of the 2% cap, we pay in close to 2.4% of assessed value --170.203.xxx.xxx
Local rent inflation (by zero [IN]) Posted on: Dec 11, 2022 6:39 AM
How can the school change state law?
Guess I need to check my county records to see what the schools around me have done. --107.147.xx.xxx
Local rent inflation (by T [IN]) Posted on: Dec 11, 2022 7:52 PM
Zero- A local govt entity can pass a referendum. This gets put on the ballot, the local people vote y/n for it. Simple majority wins.
Our local school district likes to pass these on the primary vote season/spring and not in a president elect race. less turn out, easier to swing... I mean get passed. They have now passed it to help pay for the new school pool building, last one was a double whammy... One for 3 yrs to increase the general fund to help pay general operations (they sold it as a way to increase teacher pay; which mounted to an extra $500/yr for teachers) and another referendum to spend 65M for build a 5/6 grade school and do 10M improvements at the high school. Both passed by less than 400 votes in a town of 31K. The following April, lots of people were very surprised when they opened their tax bill. Because it didn't match up what the school said it would... --170.203.xxx.xxx
Local rent inflation (by zero [IN]) Posted on: Dec 13, 2022 7:08 PM
Politics.... after that you lost me to the rage I guess.
Makes sense that they would sneak it in like that. I am in a small county but I still have lots to learn it seems. --107.147.xx.xxx
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