The privilege of being a property owner is the right to do with it as you wish within reason. As a landlord, there are huge benefits, and responsibilities. However, as land is a “fixed” product, meaning that there is, and always will be, the surface area of the Earth to own and live on (in this context), so the value will hinge greatly location. When one area of the plant becomes desirable to live on, then so to does its value. With value, comes taxes, as land can’t move, or be relocated. Hand in hand, when its value goes up, so to does its taxes as most countries’ governments are depended on land taxes. Here is my take on Property Assessments, as my region undertakes what it calls Property Assessment Season, the time of year when British Columbia does it property assessments evaluations.
On one side of the table you have the land owners, who are loving the growing rates of real estate values in many regions, so their potential investments are, in some cases, beyond their wildest expectations. Where I use to live, the Lower Mainland near Vancouver, property values have sky rocketed, so many there are enjoying their investments grow over the couple of decades to the point that they are, in some cases, worth millions. Almost everyone has enjoyed this increase. Not too many property owners are complaining about their investments today, only those who wish to buy.
On this other side of the table, are the Governments, who all are enjoying this boom in property value as well becuase their cut of the pie is in the form of taxes. It goes hand in hand that both sides should prosper. Simple, eh? But here is where fun starts, in my opinion.
So the BC Government has just released their Property Assessments, and mailed them out to the property owners, plus you can go on-line and see them too. And so the grumbling starts. Many are not happy, and see this as a huge burden, especially those who have huge mortgages against their properties. Maybe many of those who are in this huge state of debt should think twice about being property owners in their desired area to live? But nevertheless, as a property owner, very few reasons can be given to kick you off of it, unlike a tenant in a rental situation. But back to the point, and I call this greed–plain and simple. Your investment has grown beyond your expectation, yet you see many parasites nibbling way at it. Sure, taxes can be seen to be that way, but when your bottom line is just barely able to keep up, any parasitic increases are seen as critical. Perhaps some land owners have forgotten what taxes do, and why inflation in land reflects in costs of services? It is called “inflation.”
One of the criteria built into the assessment is the land’s market value. But Property Taxes reflect more than just market value, they also reflect the community that you live in, such as what utilities you have servicing your community, and future developments. Sadly, I see land owners refusing to see this, but rather looking into their pockets and seeing the gouging by taxes taking place.