According to the numbers just released from the City of Cape Coral, home values are enjoying yet another rise in value. Is this always a good thing, or is there a down side to increases in property values? Read More…..
In our area the Lee County Property Appraisers office determines if the property values go up or down, based on market conditions and other relevant factors. Last year we saw an increase in property values, and it looks like the same will happen again this year, if we continue on the same economic track.
For 2018, it currently looks like the “just value” for homes is rising by about 3.95% over last years numbers. In 2017, we ended the year at a 7.61% increase, so if we are at almost 4% midway thru this current year, we certainly should end about the same as the 2017 numbers.
Is this all good? Everyone wants to see their home worth more than they originally paid for it. Equity in a home will grow over time, and often provides the only source of retirement income for most folks, besides social security.
So what can possibly be the problem? Well, the problem is that as property values increase…..so do the taxes. Unless the mileage rate set by the county is reduced, taxes will increase for every home owner within the county. Right now the mileage rate is set at 6.75 mills, or $6.75 for every $1000 in taxable value. If the value of your home jumps from $100,000 to $125,00 in value, then there is an additional tax on the property of about $200 or so.
So the bottom line is that for homeowners to truly enjoy the increase in home values, and enhanced equity positions, the mileage rate must stay the same or go down. Its called a mileage devaluation, and not uncommon for politicians to preach about when voting time comes near.
I personally like to see tax rates either stay the same, or decrease as the economy improves. New influx of people moving here, along with new business openings can sustain our tax base just fine without new taxes. So, the answer is simple, keep the home values rising, and no new taxes, and let everyone enjoy the additional equity position in their homes, that 2018 will bring.