Martin Armstrong writes a very interesting phenomenon happening in west where govt are looking at reasons to increase Taxes because they are bankrupt and what better assets to tax than real estate because it is easy to tax immovable property.
India has also seen a residential boom which contributed significantly to tax revenues of state government. Already high value property registrations have come down significantly across states and this will lead to higher deficits for the state govt budgets. This in turn will lead to rising property taxes as it is easier to tax something which is immovable.
Martin concludes “This is why I rank property in the last category for investment. It should NEVER be everything. The population of Rome collapsed from 180AD because taxes kept rising and people were just forced to walk away. History does repeat so caution is advisable with real estate. We need a place to call home. It should not be 100% of your assets. It should be limited to a portion of your portfolio that you can afford to walk away from and survive.”
