[Music] It's a good World good World welcome back to real estate Mindset today's video is going to be Absolutely Bonkers now the data is in And right now property taxes are Absolutely skyrocketing for multiple Reasons now one of those reasons is Because the counties are over assessing The property values by a substantial Mount here in Texas we have a major Massive problem Brewing where the count Is going out to assess properties to Obviously have them pay taxes and They're assessing them for hundred to $150,000 more and so what's happening You guys in turn and we're about to find This out it's pricing some people out of Home ownership meaning that property tax Increases are actually forcing some Homeowners to sell now on top of that we Also finally you guys have updated 2024 Q1 bankruptcy statistics and I'm going To tell you guys every single area of Bankruptcy is up now as always if you Guys can if you learn something hit like On this video but if you enjoy the Content shoot me a Bonkers below now What we're going to do is we're going to Go into three different areas what we'll Do first is we're going to listen to Three different videos on how property
Taxes is absolutely wrecking homeowners Whether they're investors or it's their Primary residents after that I'm going To go into the statistics on Bankruptcies property taxes and you guys Let's not forget homeowners insurance Are property taxes and homeowners Insurance the new adjustable rate Mortgage I mean think about it back in The GFC we had mortgages go up because The interest rate changed right now we Have mortgage payments going up because Of skyrocketing property taxes and Skyrocketing homeowners insurance now The first video we're going to listen to Is on how property taxes is actually Forcing someone to sell their house Because they are priced out and cannot Afford the increase in property tax Liability you're seeing an unwelcomed Surprise she wasn't expecting in her Property tax Bill yeah her property taxes climbed Well above 100% and now she's been Priced out of her home and we also spoke To an attorney who says there's a Specific reason buyers are facing this Challenge more often especially over the Last few years The Perils of property Taxes taking a toll on Tamar Ransom she Bought her Winter Haven home last May But less than a year later it's on the Market after receiving an unwelcome Surprise I felt like I'd been baited and
Switched when you buy a house I see the Taxes at 2700 I I expect it'll vary a Little bit you know a few hundred ,000 But no in no way did I expect it would Go up 174% many new homeowners face this Sticker shock when they received their Trim notices with their new assessed Home value those bills were due at the End of March you have been doing what You can to try to make this work it's Very upsetting because I put most of my Savings into the house the down payment And the things you know alarm systems And things like that and I'm losing all Of that because I have to sell the house And I'm not going to get really anything Back and then I have to look for a new House this is definitely a buyer beware Type of a situation Michael Finn is an Attorney based in St Petersburg values Have soared in Florida particularly Anywhere near the water and somebody That bought a house five years ago May Realize a value increase of two to three Times you can dispute it but you're not Going to win a significant decrease Because the property assessor's office Is very skilled at at their valuations Now I will acknowledge that he's Actually right but nevertheless you Still again some people they can't help It especially new owners that weren't Expecting property taxes to vary like
This but a lot of people do understand That you should immediately file a Residential Homestead if your county and State offers it residential Homestead Depending on the county again put caps On certain assess value increases and Then depending on your age group there Could be retirement caps there could be Veteran caps and certain incentives like That but also you guys on top of filing Homesteads what you could do is protest Your assessed value now I personally Think that everyone should always Protest their assessed value and despite With the video is saying how skilled They are generally you're going to get a Break on your assessment so again don't Forget to protest your assessed value And follow your residential homesteads Now let's move on to the next video that Again acknowledges how bad the County Assessment values really are I'm telling You guys numerous listings on MLS right Now you guys know this when you watch my Morning lives have assessed values that Are 100 to $150,000 more than what the house is Listed at and they can't even sell their House for1 $150,000 less than the Assessed value you guys that's robbery Comment below is that not robbing why Would I be paying taxes on A500 ,000 House if the house is really 350,000 that's robbing us tell me again
Seriously you guys is that not robbing Us do you guys agree do you not agree Let me know either way here's video Number two the Cook County Assessor Admitted that some South Suburban Homeowners were over assessed in our Recent investigation now more homeowners Say they're also dealing with Questionable assessments which will turn Into property tax hikes we're going to Be out taxed from all of our homes in South Suburban Lions town Township Jamie Flaws her husband and many of their Neighbors fear the end of their Close-knit neighborhood they're anxious That they may have to move because of Property tax assessment spikes some face Increases of nearly 650 per. residents Say those assessment increases don't Match the market values of their homes We probably won't be able to sell these Homes because they're not even close to Being worth what the assessment says Because of the new assessments the flaws Property taxes will more than double From 7,000 a year to more than 16,000 a Year it will destroy my kids Futures Because all of our investment has been For 36 years in our home and land after Losing their first appeal the flaws Hired an independent appraiser who found The market value of their home to be Half as much as what the Cook County Assessor's office declared
$450,000 compared to the assessor $878,000 Property assessments have jumped across Cook County south side The ABC 7i team Researched single family residential Homes in Lions Township and found that The average increase since 2020 is more Than 32% Rich Township has the highest Average increase over the last three Years at 64% I'll probably move Tom Ahern was Shocked when he saw that his land Assessment increased 643 nearly doubling his yearly tax bill From 10,000 to more than 18,000 a year He says he's left with just one choice Sell the house take my losses and move On WE contacted the Cook County Assessor Fritz kegi about these two properties His office replied admitting that they Made an error when calculating land Values adding we have submitted a Request for a correction to the Cook County board of review which will Determine whether to reduce the values Of these properties before they certify Property values in Lion's Township the Flaws contacted the IT team after seeing Our investigation about huge tax Assessment increases in unincorporated Rich Township near Tinley Park homeowner Lisa marwitz is facing a jump of 210% Are you kidding me are we going to lose
Our house after questioning ki's office The IT team was told mistakes were made In many of the rich Township homes would Be reassessed and here's the reality you Guys these mistakes are happening Across The Nation in fact again like I said They're happening in my own in my own Backyard so I know if it's happening in My own backyard I'm we're watching Videos we're seeing data you guys again If you already own a home please please Check your property assessment and make Sure they're not making errors these are Not small errors your tax is going from $10,000 to $118,000 in one year insane I mean if You're on a fixed income you can't Afford the extra $8,000 you can't do That now here's the crazy thing not only Are the property taxes affecting people That own primary residences these Massive property tax increases are also Affecting investors because the Investors are passing along the Additional expense to the renters you Guys this is hurting us in more ways Than we realize and it's fraud I mean It's stealing it's not accurate they're Making mistakes and we we are paying for It video number three 4:00 the price to Rent much like everything else is rising Not just in the cities but also in the Suburbs let's show you some examples According to apartmentlist.com here's
The average cost to rent a two-bedroom Apartment in Arlington Height it's Nearly $2,000 a month up 6 and a half% From last year Aurora just about the Same up 5.7% and in Westmont it's more than $1,600 a month up nearly 4% so what is Driving this one Suburban landlord says It all points to an increase in property Taxes nbc5's Lexi suor has the Story Paul backin opened his property Tax assessment paperwork three weeks ago And was totally shocked said whoa wait Wait what so that kind of threw me back Taxes on his 4un plane field apartment Building went up 55% that's about $5,000 more than he Currently pays I spoke with the landlord That owns the building next door th of Mine and he was in shock also he said He's never seen anything like it and he Felt the same way Paul can't absorb the Additional expense on his own so he says He'll have to break up the burden Meaning his tenants will be on the hook For 100 bucks more a month he admits It's not ideal knowing how I'm always Seeing and reading about you know the Housing crisis and affordable housing I Feel it's very unfair a 55% tax increase That I cannot you know have the burden Of and have to pass that along to my Tenants the Will County assessor's Office says in a statement to NBC 5 the
Planfield Township Assessor revalued the Subject property along with other Properties in the subject neighborhood Based on recent sales for 2023 the Assessed value was increased and this Was a 55% increase in value I used to be A renter at one point in time in my life And I understand it and I'm you know Trying to make it better for my tenants Um and understand their point of view Because you know is going up it's not Just this um and it's it's hard to break Even nowadays it really is I mean this Is a real problem affecting all of America you guys this is just you know Shocking people don't realize that when You buy a house they you know your Mortgage even if you have a 30-year Doesn't Matter 15 30 whatever it is it's A fixed rate so people assume that their Mortgage is going to be fixed but They're starting to realize that's not The truth their property taxes are Adjusting like never ever before in the History of the US have we had massive Fluctuations in property taxes that are Essentially forcing forcing people to Sell and not only that you guys it is Bankrupting homeowners let's look at the Bankruptcy statistics now and you guys This just came out this is bankruptcy Filings and this is for the first Quarter of 2024 now filings increased Across all chapters okay okay I'm just
Going to read down these two paragraphs Right here this is going to be linked if You guys want to come back here it's Going to go into commercial bankruptcies As well but I'm mainly want to look at Chapter 13 bankruptcies there's chapter Seven and 13 seven people can just walk Away from their debt chapter 13 is a Restructure and normally if you own a House that's what you have to do so Let's look at this guys the 12,944 14% increase from 5,000 filings During the same time period last year so Bankruptcies are going up year-over-year 14% double digigit increase before Recession before job loss remember the Labor Market's red hot as is the economy So this is crazy consumer filings Increased now we're going into consumer Filings increased 133% to2 filings in Just the first quarter of 2024 that's up From 999,000 consumer filings Year-over-year now individual chapter 7 Filings okay that's where you just get a Walk away during the first quarter of 2024 were 66,800 increase over the 57,000 Individual chapter 7 filings Year-over-year now chapter 13 okay Chapter 13 is the homeowner bankruptcies Now homeowner bankruptcies in the first Quarter of 24 our loan was 4,958 now that again remember is in L in L of
Foreclosure okay so that's in Le of Foreclosure that's a 9% increase Year-over-year from 42,000 so again you Guys it is going up now here's what they Have to say as we expected the upward Trajectory in both commercial and Individual related bankruptcy filing Volumes continue mark March marks the 20th consecutive month that the Individual and Commercial bankruptcy Filings have registered monthly Year-over-year increases again 20 months In a row that's actually what was that Is that four or five months after Quantitative tightening do you think There's a pattern there factors Contributing to this trend are the Higher cost of funds and interest rates A reduction in consumer discretionary Spending higher housing costs and a Continued draw down of excess savings And not to mention real wages have gone Down real wages which means adjusted for Inflation if you're interested I'm also Going to have this article Linked In My Description this is property taxes by State you guys can see the darker blue Has a higher property taxes here's my Great state of Texas right here at a tax Rate of 1.63 and I'm going to be honest I wish my taxes were that low in fact my Taxes are 3.52% on the house that I own even Though I'm renting a lot of people don't
Realize that now look at New Jersey's 2.33 insane Illinois 2.11 that's crazy I Mean that's really crazy to me now take A look at this Guys number one worst state New Jersey Okay effective tax rate 2.33% look at This median real estate taxes paid $9,300 a year year median household Income 97,000 that means about little Less than 10% of their income little Less than 10% of their income goes Towards property Taxes have fun owning it's real fun Owning real estate right now am I right But as I said it's not just property Taxes homeowners insurance is absolutely Skyrocketing as well especially if You're in Texas I just got dropped for My insurance provider they're not going To renew me my insurance is going up $1,000 a year year now take a look at This guys the national average cost of Homeowners insurance is 2151 per year For a $300,000 house it is insane and that's Not even counting flood insurance you Guys flood insurance makes it way worse But look at again if you want to come Back here some of these states you know Roll over some of these states and it Will tell you how much insurance is now Look at Texas again Texas on average per Year I guess I should be happy because My insurance is less than average
$4,039 a year to ensure a $300,000 house That's insane you guys that is Absolutely crazy and look at this Somehow California is less than Texas $1,400 a year for California that's Crazy Oregon only $1,000 how is the West Coast so cheap and here's Florida Florida is hurting badly guys Florida is $5,700 per year on average holy smokes That is bad I'm going to just say it Like like this you guys renting is Sounding better and better as the year Goes on as we you know especially when We see these buyers remorse surveys Which is going to be the next video I Make you guys depending on the survey That you're looking at recent buyers Over 90% have buyers regret they are I'm Telling you the market the media the Industry is fooling people into thinking Right now is a good time to buy and now Those people that purchased homes based On the fear of missing out with their Heads in the sound are going bankrupt And being forced to sell their house Because they can no longer afford to own It you guys property taxes and Homeowners insurance are not fixed and So again I'm going to say this you're Going to buy fine whatever so be it but Please please have the proper Expectations and understand what to Expect if you're going to purchase a Home in 2024 no other than that guys if
You like this video again shoot me a Bonkers below if you learn something hit Liked and other than that if you're out There investing in real estate you guys Know that I wish you luck and I hope you Win
