| Investing in real estate is a wonderful activity. It allows | | | | But there are certain times when you should challenge |
| just about anybody with the right hard work and | | | | that are more opportune than other times. For |
| attitude to create a substantial fortune within their | | | | instance, you should challenge just before you make |
| lifetime much easier than many other forms of | | | | any necessary repairs to damages or any forms of |
| investing allow for. It's a great way to build something | | | | deterioration in your property. This should be |
| for the future which everybody wants to do to some | | | | self-evident. If you are arguing that your property is not |
| degree or another. | | | | worth as much, you can't very well do that right after |
| One thing that drives me crazy when it comes to real | | | | you fixed it up. So challenge it, get the taxes reduced, |
| estate investing though is property taxes. Now I should | | | | and THEN fix up the property. |
| say this right off the bat, I hate all taxes. I know there's | | | | Another good time to challenge is when the price that |
| some people that believe we should pay taxes and | | | | you pay for the building is lower than the assessed |
| that we are obliged to pay taxes and that we get the | | | | value. Take now for instance, we are in the midst of a |
| benefits of roads and bridges and security from our | | | | recession and the country is full of houses that are |
| army and, blah blah blah I just don't care. I hate paying | | | | assessed at high values that are not selling at those |
| taxes! | | | | high values. If a house is assessed at $200,000 I might |
| But that's not what I hate the most about property | | | | buy it for $120,000 today. As soon as I do you can bet |
| taxes, what I really hate is the fact that cities can raise | | | | the first thing I'm going to do is challenge the property |
| your property taxes for absolutely no reason and they | | | | taxes because they will be assessed based on that |
| do so all the time. Nothing destroys your business plan | | | | $200,000 price. And I can prove that the property is |
| quicker than an unforeseen increase in local property | | | | only worth $120,000 because that's what I just paid for |
| taxes. | | | | it! |
| Luckily there are several things you can do to | | | | Another good time to challenge is when your net |
| challenge property tax increases and there are certain | | | | income has dropped and you can prove that it has. |
| times when it makes more sense to do it than others | | | | Rental properties are assessed based on their value, |
| and that's what I'd like to talk about in this article today. | | | | and their value is determined by how much income |
| First off, property taxes are calculated by two things; | | | | they produce. If income has dropped, then by definition |
| the tax rate multiplied by the assessed value of the | | | | the value of the property has dropped and you can |
| property. You can't do anything about the tax rate, the | | | | easily prove that with your tax statements. |
| town will set that at whatever they want. But you can | | | | So there you have three times when it may be |
| challenge the assessed value of the property. If the | | | | opportune for you to challenge a property tax |
| town thinks your property is worth more than you | | | | assessment. Don't be afraid, get your facts and figures |
| know it is, then you can challenge them and often be | | | | straight and make your case and you will be surprised |
| successful. | | | | how easy it actually is to win. |