Blecher_onthe_Hudson t1_iu0j9jd wrote
I'm not any happier about the taxes than anyone else, but I just want to inject some reality in to the "taxed out of our home!" hyperbole. If you owned for the last 5 years you saw a 30-50% increase in your value, you're sitting on a pile of equity, you're not poor. Lets say the rate goes up to 2%, do you really think that over the next 10 years your appreciate will average less than 2% annually?
So many people want the financial benefits of owning property but aren't willing to pay the overhead. If you are cash poor, there's a number of ways the banks can help you pay your taxes.
As I said during the reval, the city would be smart to set up a "tax deferral lien" bond system in lieu of the much maligned reverse mortgage. The way it would work is if you can't pay your taxes, the city puts a lien on your property to be resolved upon eventually transfer (similar to reverse mortgage), and sells the bundled liens as bonds. You essentially get a loan at interest, the city gets it's money, the bondholders make profit. Everybody wins, including the property owner who still gets their appreciation while not paying taxes.
mbstor23 OP t1_iu0k0l0 wrote
This effects renters too. Rents will have to go up because operating costs have gone up. It’s now all about the DTJC gentrifiers.
Blecher_onthe_Hudson t1_iu0lsnj wrote
But by how much? Lets say there's a 3 family worth $1m and taxes go up 0.3%. That's an extra $3k, or $83 per month per unit. More, but not devastating by itself to most renters.
mbstor23 OP t1_iu0lzl9 wrote
That sounds about right, TBH. Point being is there will be rent hikes. Renters should not assume that property tax hikes are only a property owner’s problem.
Blecher_onthe_Hudson t1_iu0njeu wrote
Of course, but if they're rent-controlled then they might be well protected since the city uses CPI and don't take taxes into account as far as I know for allowable rent increases.
mbstor23 OP t1_iu0y8zs wrote
Very few are actually lucky enough to be in a rent-controlled apartment. They should count their blessings that they’re well shielded from this massacre. For everyone else renting at market rate or a homeowner, you’re all getting fucked.
Rent controlled apartments are a very small part of the overall market.
Mindless-Budget9019 t1_iu0q0v9 wrote
Landlords can apply for a hardship increase in order to increase the rent past 4%. There are a few rules around that though.
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