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Updated over 8 years ago, 07/16/2016
Property Taxes in Indianapolis - Don't these have to rise?
Hi All,
I've run the numbers on a few investment ideas in Indianapolis, the numbers look good on paper, but the cash flow seems to be to be helped by the low property tax rates. I'm curious people's thoughts on the risks of property taxes rising over the long term.
How is it sustainable for a 3 bedroom house to have $1300 a year in property taxes? How much would it cost the town to send 2 kids in that house through school? Plus all the public services that need to be provided? I'm no expert on municipal budgets, but it seems hard to get my head around how they make it work. With the increasing debt levels of municipalities in markets like these, isn't it reasonable to think there has to be some tipping point in the next decade where these town are insolvent and even right leaning towns have to raise property taxes?
And taking that thought a step further, what happens to the small investor with maybe a half dozen rentals in Indy when property taxes double and their properties are negative cash flow now????
I'm very curious for thoughts from those who understand property taxes better then I do. I also think this can apply to many markets besides Indianapolis, but it was just the one I was looking at today and thinking about this.
Thanks all
Ben