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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Cage Rattler who wrote (31049)	10/18/2010 11:33:30 AM
From: benwood	2 Recommendations Respond to of 71462

Aye, that's the rub: property tax. The hubris of the last two decades in the form of new stadiums, roads, tunnels, expanded police, fire, quarter billion dollar libraries (Seattle), vast prison systems to incarcerate addicts, etc. has created a desperate situation for many local and state gov'ts in which they may go after property owners everywhere since they can be compelled to pay taxes even if they don't spend any money and even if they don't have a job or an income. Still... it won't be crazy everywhere. Where you buy is key, I think. I believe that the metropolises will see an exodus as people do not want to support the piled on 30-year bond projects which have dramatically escalated taxes for which there is little economic justification, e.g. taxpayer subsidies for bloated professional athlete salaries or tunnels which cost a fortune and are used to create higher property values for well connected developers whose properties now boast a better view.

To: Cage Rattler who wrote (31049)	10/18/2010 1:28:50 PM
From: Horgad	Read Replies (1) \| Respond to of 71462

My estimate of a 3% return from leasing out farmland included property taxes as they stand now (but not income taxes). Increasing confiscatory property taxes would be a risk. Example using some realistic Indiana based numbers: Cost: $4500 per acre Rent: $158 per acre Property Taxes: $25 per acre Income: 2.955% (Gross for the guy farming it would something like 130 bushels of corn produced per acre at $5.00 a bushel or $650 per acre.) Property Taxes on Classified Forest are almost nothing. The income is hard to predict or generalize so I won't even try. I know someone who bought forest that paid for itself after the first logging done the year he bought it and others that will have to wait 20 years before any hope of a harvest. Example $15.00 a year in property taxes for 44 acres bought for less than $2000 per acre... www.mibor.com #21016064