Real Estate Broker · Portland, OR · Member since 2016 · 97 posts · 90 votes
Hey all,
I've been contemplating the impact that gentrification and real estate investing have in under served communities. I'm curious if anyone knows.... I heard that counties/states property taxes go to benefit schools, parks, etc of local neighborhoods/counties. If you buy properties outside of your county/state, do the property taxes still go towards these things? Or are they redistributed to where you live?
In other words, does it negatively impact the neighborhood tax resource wise if I buy properties outside of my county and rent them out?
Real Estate Broker · Portland, OR · Member since 2016 · 97 posts · 90 votes
10y
Thanks @Patrick Liska! Any ideas on how to most ethically invest in under served communities, beyond being a great landlord? I don't plan to buy in rough areas, but the question often comes up in my network of professionals (as I am a social worker in my day job). I want to begin offering financial IQ classes at inner city schools in the future, but also curious what someone can do as a landlord to help the community without necessarily pushing out long term residents.
Investor · Verona, NJ · Member since 2014 · 1k+ posts · 832 votes
10y
this has been a question for many years, people have invested only to see it fail, but you do see some areas that do embrace it. its very tough to bring back an area that is falling or has fallen. This just popped in my head, what if you were able to convince a few local investors to buy one place, dedicate the place as a community center, a place where your students will go to, but have them pay into the place for part ownership ? let them see the financial part of owning a place ( minimal investments for maybe 1 % share ) let them get involved in ownership so they can understand and take pride in something they own. IDK just a thought, otherwise as a landlord you have to be careful of how much you spend to fix up your places, the value may not be there in the end and you will lose out.
Investor · Redondo Beach, CA · Member since 2013 · 147 posts · 50 votes
10y
@Patrick Liska is right. Your property is taxed by a few jurisdictions (generally the county, city/town, school districts, and utility districts) where your property is located. It doesn't matter whether the owner lives in that house or is an absentee owner living in another state. The paid taxes will go to benefit the county, city, schools, etc of that property.
Real Estate Broker · Portland, OR · Member since 2016 · 97 posts · 90 votes
10y
Sounds like ultimately taxes increase for a local area when property values increase (and probably new ownership/new land to value appraisals). Doesn't matter if it is owner-occupied or rented out. Property values increase when neighborhoods improve. Perhaps the buy and hold investors contribution to the neighborhood is helping the neighborhood improve, one property at a time. Thanks for the feedback all!