A 10% cap isn't going to do a thing....

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A 10% cap isn't going to do a thing....

Post  we all l on Fri Dec 07, 2007 4:21 pm

A 10% cap isn't going to do a thing....
Everyone looses in the end.
OK this is what happens when you own and rent out a rental property to your family and friends that can't afford to buy a house yet.
First someone buys the property; letís say you buy it before the property has increased, maybe back in the year 1990. Maybe you were break-even with your cash flow on the property. So this owner bought low. And now after all the major increases in taxes (because they don't have a cap, raises to what the appraiser says that it's worth 100%) you are then $3,000 dollars negative a month. So then you have to increase rents, which the market can't bare, so then the owner can't afford to fix up the property because of the negative cash flow. So basically the tax increases are causing rents to go up and substandard living for renters, because the owners can't afford to fix them up. Plus you'll be living next to this dilapidated rental house in your neighborhood. Because the owner can't afford to fix them up because of taxes. And it's going to keep getting worse if the state doesn't change the tax rate for rental property. If they don't open up the market to all property types more and more property is going to go on the market and really lower every ones property value. Plus if you want to move and you can't sell you home and want to rent it out. Your property taxes will increase to 100% of what the property is worth. So basically youíre stuck in your home forever, because you won't be able to sell it, and renting it will take lots of money out of your pocket. A 10% cap isn't going to do a thing....We need help!!!!

we all l

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