Wednesday, December 07, 2011

Every incremental dollar of future property taxes drives down home values

Never thought of it this way.  Very interesting.

"When you buy a house, you’re not just committing to a mortgage. You are also promising to pay the future property taxes on that house. What drives those local property taxes are the future costs of paying state and local workers and retirees, particularly retirees’ pensions and health care. These costs are going in one direction: up.  

Unless state and local governments take steps now to reduce future costs, or unless they plan on suddenly repudiating their promises to their public-sector work forces one day, every dollar in unfunded pension and health-care costs is up to a dollar less in the future value of a house."

~Nicole Gelinas, NRO article "How Taxes Drive Down Home Values"

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