Thursday, July 7, 2016

My sympathies to the Chicago home owner

Chicago Tribune: Just when you were breathing a sigh of relief at the close of another tax season, a new study comes out showing the hit that Illinoisans take on property taxes compared with residents in other states.
Illinois has the highest median property tax rate in the nation, with various agencies and entities taking a combined 2.67 percent bite, according to a CoreLogic analysis of real estate property taxes nationwide.
Nationally, the median property tax rate is 1.31 percent, said the Irvine, Calif.-based data provider to financial services and real estate companies. That means that a home valued at $200,000 will, on average, pay annual total property taxes of $2,620.
In Illinois, that homeowner would pay $5,340.

Mortgage rates are 3.41 and tax rates  2.67 (on assessed value).   So much of the debt  cost of owning a is government expenses.  But government expenses are going up, the interest cost Chicago pays is 8%.

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