Property tax rate plays an important role in real estate investment. A high property tax rate (e.g., about 3% rate in Taxes) often makes its housing market difficult to increase a lot. As a result, the appreciation value of real estate investment is limited. On the other hand, high property tax rate will eat your monthly case flow significantly. If you get neither good cash flow nor good appreciation, but you want to do real estate investment in that area? A low property tax rate area will thus be more attractive. The appreciation can be better, and the cash flow is also good.
On the other hand, the house price of a high property tax rate area is more stable, no matter in good or bad years. The house price of a low property tax rate may fluctuate a lot, making a roller coaster experience, and real estate investors may get burned.
To find the property tax rate for an area such as county, you can use website topcounty.com. It shows not only the property tax rate, but also population, population distribution, median home price, median household income and a lot more information about each county. Very useful for real estate investment study.
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