The property or opportunity may seem like a solid investment and/or location for a residence or business, but some investors overlook the status of the municipality. I see plenty of situations, such as those in Illinois as detailed in the below linked research, in which there could be cost increases put in place by the city, county, or state. Increases in property taxes can make the difference between a solid investment and a questionable one. When corporate taxes are increased, the location becomes less attractive for businesses to locate there or stay there. If sales taxes and transaction fees are increased, the area becomes less attractive for consumers, who will shop elsewhere if the savings add up.
Obviously, we don't know what will happen in the years to come, but there is plenty of data and trends out there to help decision makers gauge potential problems. However, monitoring for these problems can also be monitoring for opportunities along with allowing for attempts at prevention. Legislative changes are proposed and typically allow for or require feedback. If and when passed, there is an advance time frame for when they will take effect. For example, a tax bill approved in August takes effect the following January 1st.
It is also obvious that many owners and landlords do not keep up with proposed ordinances and legislation like they should, or do not fully prepare for the consequences. Using the aforementioned August passing for a January enforcement example, that would leave four months for a landlord to sell, lease, or somehow adjust their situation before the direct impact of the change takes effect. Since these happenings are not part of the property, new legislation is not a disclosure requirement.
Having the right information can make you and your team "first in" on great real estate opportunities. It's the difference the right research person or team can make!
https://www.illinoispolicy.org/illinois-local-governments-lose-out-on-10-9b-in-state-taxes/
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