This Time…Next Year…Property Assessments and Property Taxes
Right about now…BC Assessment is preparing to create your property assessment for next year. I am sure it is no coincidence that they use Summer month sales (aka Peak Sales Time) to use for their data base of “comparables”.
I think it is a given that property values will be lower for this upcoming assessment period , most certainly they have peaked.
I am curious as to whether BC Assessment will try to massage the info so as to keep assessments as high as possible. I KNOW for a FACT they did this for the class of properties I belong to. The reason I have this suspicion is that I do feel BC Assessment is not neutral, it has an UNholy alliance with Local Gov’ts and cheap politics are being played.
You see…right about now, if this time period is used to determine property values, it will be before the Big Drops are recorded ,aka it is at the abyss, but not over the edge …..yet. Yes, some prices, as have been noted on ths blog, are in major decline re asking prices. That won’t count until SOLD. However, the Listings are approaching the 20,000 magic Number…….the dam is about to burst.
What I am anticipating is that when the Assessments come out in Early January, there will be a flood of people wishing to appeal. They will be royally pissed off when they see their assessment based on 6 month old data, when the market says their home is worth say 25% less…maybe even much less? .
The Local Gov’ts will draft an annual budget…and will play with the assessment numbers and mill rates. You can rest(?) assured that taxes will go up..ie the gross taxes collected will increase, on average 3%…1% is a given in Richmond to cover future infrastructure costs.
You see, if property values collapse the mill rate will go up, it is the multiplier effect. Hence there will be a lot of angry people who feel ripped -off having their property value drop yet still paying high property taxes.
Should they be angry? I think so. The City has been in bed with developers to literally flood the market with speculative building. When the music stops ….the oversupply will dilute ALL property values. Or , even worse,the city may be stuck with condos via unpaid taxes and no one willing to bid on them in Tax Sales.
On a positive note, it may be the PERFECT time and opportunity to start a revolution….we can no longer afford these clowns…..time to tighten the belt and whip out the sharp pencils.
Mark My Words…….