On 5/19/2012 1:19 AM, Trevor wrote:
"Stefan wrote in message
...
You need to brush up on how Property Taxes are calculated. Property
taxes are not the same as Personal Property taxes. Basically, in the US,
the formula is:

((Home's value * Assessment Rate) - Exemption Credit) * Property Tax Rate
= Property Tax

When the Market Value of a home increases, the tax increases. It can't
do otherwise unless the Assessment and Tax rates are LOWERED or the
Exemption INCREASED. All three of which require a time consuming
legislative process to change. And in some states in the US, a vote by
the people in a general election, too. Plus, the amount of change and
the maximum that can be charged are usually limited by law.


OK, over here they just make them up to suit the budget each year. Seems
your system sucks big time, so blame whoever made it law. Although ours is
no better when greedy governments can easily decide to increase rates by
multiples of the inflation rate every year, whether house prices go up OR
down :-(



I'm not familiar with Australia's economy or its banking laws, so I can't
speak on that, but in the US, in hindsight analysis, it was determined
that a piece of legislation championed by then President Clinton was the
single pebble dropped into the sea that became the tidal wave which
devastated the US and, ultimately, the world's economies. This was
reported in newspapers, magazines, TV, etc., over and over (with extended
commentary) for weeks a few years ago at the height of the recession here.


"Determined" by who? And what proof did they use to arrive at that
conclusion?
Don't believe everything you read in the right wing press! :-)


As an aside: At what rate are housing prices currently appreciating in
Australia?

They are actually fairly static, or falling slightly at the moment
(depending on location). The bubble has stopped growing, especially for land
prices, but hasn't burst like many other countries since there is still
demand, unemployment is low, and construction costs continue to increase,
meaning established dwellings haven't dropped too much except for those that
were *drastically* overpriced.


In the US, during the boom, in the areas greatest affected,
home prices were increasing on average 25% to 33% per year. Middle class
homes were selling the same day they were listed (or the next), many for
cash, that is, no loan. I had a friend who bought a place (with a loan)
just as the boom was beginning and sold it about 4 years later, about a
year prior to the bust, for almost triple what he paid for it.

Ours never went that high, but many doubled in that time, perhaps tripled
over about 10 or 12 years.

Trevor.

We have an easy to use system of appeals. No lawyer is needed. You may
appeal only the basic valuation of your property, or the mathmatics. In
the nY area the basic apeals are failry liberal.





--
Peter