Tax Relief & Hammond Propety Values

The potential for meaningful property tax relief, coupled with the probability that the sub-prime crisis is closer to the finish than the beginning, now might be the time to contemplate future property prices in Hammond.

Taking away the uncertainty of property tax expense, will remove a major barrier for real-estate investors looking to invest in Hammond. Quality rental units are an asset to the city as well as the neighborhood they are situated in.

The Sub-prime mortgage crisis is in a critical phase in which the true nature of the problem is finally being acknowledged. There is probably more bad news ahead, but at some point in the near future, everyone will have had to come clean with their losses. At that point, capitulation will have occurred, which will set the stage for the inevitable recovery.

Without pointing the finger at anyone, Hammond did not participate fully in the previous upward cycle in the real-estate market. Now might be a time to consider some "contrarian" theory in regards to real-estate. Interest rates are low and going lower in the near term. As the probability of a property tax solution increases (in Indiana), coupled, with a resolution of the sub-prime disaster, combined with very low interest rates, that is a very positive combination of events IMO.

There is the immediate concern of numerous loans that will re-set during most of 2008. The chances are, that the "coast is clear" won't be given until sometime mid 2009. At that point however, it should be obvious the bottom is in, if my theory holds water. Tax relief and a bottom in interest rates would have to be in place before that mid 09 time frame.