Monday, August 3, 2015

Real Estate Vulnerable During Liquidation Phase (Deleveraging) of Business Cycle

Cities from Chicago to Salt Lake Counties are looking to raise property taxes to support the public sector. The property tax increase search highlights a new city on a regular basis. Rising property taxes will not only drive homeowners crazy but also lighten their pocketbooks when the global economy is contracting. Raises taxes on property (real estate) that cannot be moved during a cycle of higher interest rates that will last for decades will without a doubt dampen the demand for real estate. Real estate, the biggest purchase and investment Americans, Europeans, and Asians make, will struggle during the global deleveraging process.

Headline: Chicago City Council coming to grips with big tax hike

Amid a torrent of bad financial news, many members of the Chicago City Council recognize that a property tax hike is needed to help fix the city's pension problem, perhaps $250 million or more.

That would be a 32.3 percent increase over the $774.4 million property tax levy in 2014, which is being collected this year, according to figures compiled by the Cook County clerk's office, which tracks property taxes.



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