Cook County Treasurer Maria Pappas Shows Real Estate Share Of Public Debt
“The idea behind this is that people are starting to understand that when they buy real estate in Cook County, they are also buying a long-term credit card,” says Pappas. But as governments look to property taxes to help reduce debt, more and more people will walk away, she argues. “The bigger the increase, the bigger the exit. So we’ll have to look for other sources of funding.”
The invoice is not due immediately. Debts are repaid over several years or decades. Pension commitments may also vary from year to year depending on market and economic performance. An improving economy, an increased population, more development or pension reforms could reduce liabilities. On the other hand, if fear of increased debt scares people and investments away, those numbers could go up.
In heavily indebted areas, property tax bills are already so high that homeowners will be paying more in taxes than their homes are worth in a relatively short period of time. For example, the owner of a $ 100,000 home in Ford Heights with high leverage will pay that much tax within 18 years.
According to the Pappas report, “Annual property taxes in some municipalities are so high that homeowners end up paying a lot more in taxes over a 30-year mortgage than they paid for the house in the first place. . Take Park Forest, where the annual taxes per $ 100,000 of a home’s value are $ 6,558. This means that home buyers in this village would pay twice as much in taxes over 30 years than they paid for their home in the first place. $ 100,000 – which means homeowners would pay as much tax over 20 years as their home – are Riverdale, Ford Heights, Country Club Hills, and Harvey. “