Posted on 04/08/2018 6:55:58 AM PDT by george76
Skyrocketing property taxes, a sluggish state economy and Illinois’ outmigration crisis could spell trouble for the housing market.
Most people view their decision to buy a home at least in part as an investment. For most households, the net equity in their home represents the bulk of their net worth. But it’s more than just a financial decision – it’s a sign of trust and certainty in the future of a given community.
Unfortunately, government data suggest home prices in Illinois are still down 10 percent compared with 2006. And over the same time, property tax bills have gone up more than 51 percent.
That doesn’t inspire confidence or certainty for prospective homeowners.
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Despite the decrease in home prices over the decade, the average household property tax bill in Illinois rose 51 percent
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Illinoisans have seen their property tax bills grow six times faster than household incomes. Are those bills driving down home values?
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an increase in the property tax rate has a negative effect on property values, even after accounting for local public services.
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Employment growth in Illinois is lagging the rest of the nation and could actually get worse. If home prices begin to decline, the labor market could take another hit.
In order to move Illinois back from the edge of disaster, the right policy prescriptions would be to reduce property taxes across the state in order to make buying a home in Illinois a worthwhile investment again. To make that realistic, lawmakers must address the main cost-drivers of government. A good place to start is consolidating the state’s nearly 7,000 units of local government, which fuel high property tax bills.
Enacting long-term property tax relief would gift greater certainty to homeowners residing in the Land of Lincoln, not to mention homeowners-to-be.
(Excerpt) Read more at illinoispolicy.org ...
Which state will fail first, IL or CA?
Property taxes, proof you aren’t the king or queen of the governments castle. It proves you only rent the abode from the government. Proof, if you improve your home your taxes go up. If you don’t the taxes go up. More if you improve it.
Asking professional looters to stop looting? They would rather let the entire society collapse first - as long as they think they have a shot at the final crumbs.
Illinois. Its biggest employer is the State of Illinois and its state constitution has been interpreted to require a 7% growth in pensions a year for all state employees.
With California, a federal push against illegals would cut a fair amount of their fiscal burden.
Over 25 years in our house. Tax was originaly $5,000 and now $11,000. Purchase price $396,000. Current appraisal only slightly higher. Great investment. F illannoy.y
I believe that it was Raegan that said “the problem with socialism is that they eventually run out of other peoples’ money”. The insane morons will tax/spend until there isn’t a single penny left to collect or spend....then, the collapse comes. We’ve seen it over and over throughout history.
Property tax, like income tax, is a hideous thing. You just think you “own” that property. You don’t. You just “rent” it from the government. Don’t think so? Just don’t pay the “rent” and watch what happens to ya.
“Asking professional looters to stop looting? “
They don’t give a rip. They take their retirement and move to FL.
Bankruptcy to include cuts in spending, including the ridiculous pension benefits, is the only way I can see them getting out of this situation. When will governments stop buying votes from employees by offering early retirement with inflated levels of pay? Not until the dominos begin to fall, and then only reluctantly.
Friend of mine and her husband bought a nice piece of property in Alexander County (extreme southern Illinois—Cairo is the county seat). They felt as if they were the only ones in the county who were paying any taxes. Services, like fire, sheriff, road maintenance virtually non-existent. After about 20 years, they moved back to Missouri.
The owner is hoping some sucker will buy his house.
So, he can escape with a few dollars in his pocket.
Illinois needs more taxes so they can build libraries in the south side
The only people the government can control are the ones who have a stake and something to lose. Just another shakedown.
Which state will fail first, IL or CA?
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Interesting question. Bankruptcies have been scaling-up. We’ve moved from personal, to business level, to the big banks, and even cities declaring bankruptcy. It’s logical at some point an entire state will declare bankruptcy. What then? Does the state go into receivership? Who runs it? It’s all very weird.
Although he didn’t work for the state, my brother timed his house sale to his retirement date. He couldn’t get out of Illinois fast enough to suit him.
A home is NOT an investment, it is a place to live. Unfortunately too many have bought into that notion. It is also a good example of the greater fool theory i.e. prices of a commodity rise until there is not a fool left to buy it (or afford to buy it).
There are three winners in every home purchase: the seller, the real estate broker, and the financing industry plus the state which also gets a cut with the various taxes on the transaction.
I am not saying that buying a home is a bad thing, frankly it leads to stability unless one is planning on a “flip”, but I don’t think one should look at buying a home is an investment.
Oh, your home still is a good investment.
For public employees.
Add CONN and RI to te list....NYS would be on the list if not for NYC..
When the supper rich leave it is over...
After taxes NYS is poorer than Miss... except NYC
I think of it as extortion money. The property can be completely paid off and debt free, but fail to pay that annual 'fee' and they will take away everything you spent your life working for and destroy you.
I live in the rapidly depopulating ghost town that is Upstate NY. Foreclosures for back taxes have hit close to home, and small businesses are dropping like flies. Only new housing going up is low income, and most of the few new full-time private sector jobs are the result of taxpayer-funded bribes.
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