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This may not be so hot overall. As I see it the more land prices are inflated the more property taxes are also inflated. This does not make me feel good.
Will a financial institution loan money at $5000 per acre for unimproved property? While real estate executives ask $35,000 per home lot?
Home buyers should be very careful about how much they are willing to pay regardless of their wealth. It is odd to realize the wealthy are the ones promoting inflation in the real estate industry. Nothing frugal nor fiscal conservative about that mentality.
It is risky business for home buyers to get sucked into the "Lawrence Frenzy". Do home buyers realize owing more than property is actually worth can be a real live possibility when paying inflated values? It can come back to haunt homeowners should the GOP pull off a third home loan scam that sends the economy down the tubes. Many in Lawrence,Kansas have yet to recover.
Inflation as an industry is NEVER healthy for any economy. I tag these economies as "boom town" economies. "Boom" always crash sooner or later. BUYERS BEWARE!!!
I DO NOT want these "Boom Town White Collars" inflating my property value because I am interested in paying higher property taxes to support their foolishness.
good points, yet LAND is still the only thing they can't "manufacture" -- you can make more Fords and Chevys and iPOD -- but you cannot make more LAND. it's still WAY undervalued compared to other assets --- it's illiquid market - farmland - but worth it's weight in gold.
The tax issue is another matter and i agree 100% with you there.
$25000 dollars for a HOME LOT (to build a house on) doesn't sound at all unreasonable to me - because you get all the infrastructure in town to go with it. But the taxes are too high .
Neither does $5000 per acre for farmland --- in fact it sounds very reasonable to me.
the Taxes point is very well put. WHY tax farmland at all??? they don't hardly use any city services.
Inflation is a reckless economic policy.
One might be able to sell a home lot for $100,000 to some buyer however that does not make all
lots worth $100,000 therefore a lot must be assessed at what it might bring at rural farmland value of around $1,000 per acre.
Builders and speculators are not about to pay a farmer $25,000 per one eighth acre sized home lot. However in all fairness builders and speculators should be offering the family farm families no less than $100,000 per acre. 8 homes on one acre of land could bring $1,600,000 or more.
Tax Assessed Value and Market Value are two very different animals so when the powers that be decide Market Value should be assessed Value for sake of increasing taxes that is unacceptable. Market Value is all over the place therefore an an unreasonable approach. Under Reagan,Bush and Bush market values went straight to hell.
Not only that who wants to pay taxes based on market values or an assumed market value which is based on speculation.
Ben, I won't dispute these--figures $4,500 and $5,000 per acre, but I can tell you that I don't know a single seller in Jefferson County, the NW county adjacent to Douglas, who has sold land for much more than $3,000 and this area is equally desirable.
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