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These guys suck at actually doing the math. Property taxes won't remain constant. They will rise with inflation while the bond repayment stays the same.
by treis 6y ago
These guys suck at actually doing the math. Property taxes won't remain constant. They will rise with inflation while the bond repayment stays the same.
- munk-a 6y agoOn average property taxes will increase - in some areas they will decrease. If everyone is betting on their local tax pools increasing there are going to be some big losers.
- scott00 6y agoI was also annoyed by that. However he didn't include interest in his repayment numbers either, and the two errors roughly offset.
- treis 6y agoI'm not an expert, but usually bonds are bought at a discount. The city would sell 1.5 million worth of bonds for 1.3 million, for example. The effective interest rate comes from that discount. That said, they don't seem to provide a lot of details and I've seen some wildly misleading numbers from Strongtowns. They're not to be trusted to provide objective numbers.
- brockwhittaker 6y agoWe largely live in an inflation-free environment right now, so I just don't believe that argument necessarily, as I might have twenty years ago. 30 years of 1% inflation = 26% diminished buying power 30 years of 4% inflation = 70% diminished buying power
- Invictus0 6y agoWe can expect 3-4% inflation for the next 5 years as a result of the Fed's stimulus programs.
- hinkley 6y agoPresumably the road will increase the value of neighborhood, but after a point that's the city causing gentrification.