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Landowners in Montgomery County, Illinois are grappling with a dramatic spike in property taxes after having their bills reassessed.
Brandi Lentz told 5 On Your Side she paid $756 in property taxes last year on a 96-acre tract of woodland in Montgomery County. Next year, she has confirmation that her property tax bill will be more than $10,000 — a shocking 1,222% increase — and she’s not alone.
“People are going to lose their property,” said former Montgomery Co. Finance Chair Megan Beeler in her interview with 5 On Your Side. “When you’re looking at a 1,500% increase, a 3,000% increase on property, we’re not going to have the ability to maintain and pay the taxes.”
What caused the sudden increase?
The increase in property taxes stems from a 2007 state law requiring woodland tracts to be taxed like homes, according to Montgomery County Assessor Kendra Niehaus. Up until this year, the law wasn’t correctly implemented in Montgomery County. As a result, woodland properties are now taxed at 33.33% of their market value.
Property owners can challenge the assessment through the Board of Review, though a resolution may be difficult due to the lack of township assessors. The Montgomery County Board of Commissioners recently held a special session to address these concerns.
What else can property owners do? They should start by reviewing their assessment details for accuracy. They can also compare recent sales of comparable properties in their area to see if their valuation aligns with market trends. Gathering documentation to support a claim of overvaluation can help build a case for an appeal.
Once an appeal is filed, owners may be scheduled for a hearing to present their case. So, it’s important to prepare a well-organized argument supported by evidence and be mindful of deadlines. Having a solid emergency fund can also help homeowners navigate large tax bills without risking losing their properties.
How to own property without the hassle
Investing in real estate has always been an attractive option for building wealth, but the thought of managing properties can be daunting.
Homeshares is changing the game by allowing accredited investors to gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning, or managing property.
The fund focuses on homes with substantial equity, utilizing Home Equity Agreements (HEAs) to help homeowners access liquidity without incurring debt or additional interest payments.
This approach provides an effective, hands-off way to invest in high-quality residential properties, plus the added benefit of diversification across various regional markets – with a minimum investment of $25,000.
With risk-adjusted internal returns ranging from 12% to 18%, the U.S. Home Equity Fund could unlock lucrative real estate opportunities, offering investors a low-maintenance alternative to traditional property ownership.
The commercial real estate market is another avenue for real estate investment.
First National Realty Partners (FNRP) allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.
Simply answer a few questions – including how much you would like to invest – to start browsing their full list of available properties.
However, owning a share of a project or property this way holds some risk — for instance, you could receive no returns and these assets are often illiquid. Speak to a professional if this investment is right for you, especially if you are retired or close to retirement.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
