With all the vacant properties lingering on the market for months, and even years, why don't we all pitch in and help out? (all meaning federal & local governments)
Here is how we can do it: Let's say that:
The owner pays $ 1,000 month in mortgage payments (PITI)
Fair market rent is $ 1,000 for the area.
The property taxes are $ 2,000 per year.
Here is my solution:
Qualified, needy family rents the property and pays only half the fair market value, so $500 per month. In return, the owner receives:
Property Taxes cut in half - at the local level
Losses doubled on the Federal level.
In the end it the situation which now looks like this:
Owner pays $ 1,000 month in mortgage payments, so $ 12,000 per year.
Fair market rent is $ 1,000 month, so $ 12,000 per year.
Actual rent received is $ 500 per month, so only $ 6,000 per year.
Annual property taxes $ 2,000.
The loss he can now take on taxes is only $ 6,000 (the difference between the mortgage payments made per year and actual money received).
Under the new program it would look like this:
Annual property taxes $ 1,000.
Loss the owner could write off: $ 12,000 (double).
Maybe that could help some of these strapped owners AND put some roofs over some of some needy families. It saddens me to see a family of 4 live in a one room mobile home, while these properties are vacant....
Please don't say that family of 4 chose to live that way! If you've ever served food at a shelter (I have), you will hear stories of people like you and I, normal middle class folks, with good jobs and nice homes, who lost it all because a child got sick and they had no insurance.
If you are going to argue that the drop in property taxes will affect our local coffers, think again! Will these properties going into foreclosure fill those coffers? At the federal level, the credit would make such a small dent; maybe it will reduce some of the aid we provide some obscure nation for their arms proliferation...
What do you think? Could my idea work? I would love your response on this!
Your Myrtle Beach Real Estate Connection, Mirela Monte
www.MyrtleBeachHomes.us
I feel the same way you do...Phoenix has a boat load of vacant homes...great homes...doing nothing!
Jess