Profiting from a real estate bubble seems quite unimportant to those individuals who plan to spend their retirement years in a house they worked for decades to purchase. The growing appreciation of their home is, instead, a frightening liability for seniors living on a fixed income. Each year brings a double digit assessment increase for those who cannot afford any additional cost. City governments, benefitting from greatly increased coffers at the expense of its citizens, splurge on beautification projects, replace perfectly good school buildings, and construct high rise parking decks to benefit wealthy businessmen.
It is my belief that the only fair method of assessment for a family’s primary residence is to fix that value at the purchase price of the home. The family may then choose the mortgage cost and tax burden that they can afford. And they can plan a retirement strategy based on the costs they choose. When a home is sold it is then subject to an automatic assessment increase based on its higher value. Individuals purchasing at higher prices would pay at higher values. It would be an individual’s choice whether to remain in one’s present home with its fixed assessed value or move into a more expensive home with a much higher assessment. Under the current system a family is forced into higher costs that are completely out of their control.
Will the municipalities be able to afford this method of assessment? Of course! Millions of dollars are currently being spent on projects that have little value for the average citizen. Lots of us would like a new home rather than continuing to live in a 1950’s model. But we remain in the home we can afford. City government should learn that same lesson in frugality.
Ownership of private property is a legacy of our Founding Fathers that should be cherished and preserved. And government should never threaten its citizens’ senior years.