Yes there is. You own a more valuable asset, so now even if you want to keep it you could take out a loan against it for a greater amount than if it hadn't appreciated.
Yes there is. You own a more valuable asset, so now even if you want to keep it you could take out a loan against it for a greater amount than if it hadn't appreciated.
Your statement is based on assumptions that just don't hold for many people. First and foremost, you imply a subjective utility of receiving a loan. For many people, having loans - especially collateralized against your home - has negative utility, not positive. Case in point: someone who'd need to take our a loan to pay the property tax.
But even if you were right for the majority of home owners: feel free to tax collateralized homes as commercial property based on the volume of the mortgage. Case solved.
You mean take out a loan to pay for the increased taxes? The banks win with that one. Some people, especially as they age, are seeking out simplicity with their finances amongst everything else.