This reminds me of what I saw recently about Detroit in the US. A number of houses there are up for sale at ridiculously low prices such as 500 dollars or less. When people leave, the land and property basically loses all value.
The $500 houses in Detroit are a bit of a scam. You get the deed to the place and then you get hit with the property taxes. Those places are empty for a reason.
The difference is that the back taxes don't fall on the previous owners, they stay with the property and keep piling up along with penalties, interest and fees. The new buyer has to pay it all.
Once a property "sinks" (becomes worth less than its back taxes), its over.
Comments
This reminds me of what I saw recently about Detroit in the US. A number of houses there are up for sale at ridiculously low prices such as 500 dollars or less. When people leave, the land and property basically loses all value.
The $500 houses in Detroit are a bit of a scam. You get the deed to the place and then you get hit with the property taxes. Those places are empty for a reason.
How large would be the property taxes for such houses? Is it significantly higher than in other cities/states?
The difference is that the back taxes don't fall on the previous owners, they stay with the property and keep piling up along with penalties, interest and fees. The new buyer has to pay it all.
Once a property "sinks" (becomes worth less than its back taxes), its over.
What a pity! But there is still infrastructure: roads, water, electricity, telephone lines...