Real Estate 101 – Property Taxes

When it comes to owning a home or property in general, property taxes are just part of that package. For first-time homeowners, it may seem overwhelming to have to factor in property taxes in addition to the mortgage and any other routine expenses. To better understand property taxes, we break it down and explain how they are calculated.

What are they?

Property taxes are based on location or municipality. When we pay property taxes we are paying for schools, community services such as garbage pick-up, snow removal, policing and much more. In addition to these services that are paid for by the property taxes, some regions may have additional charges that are specific to the location.

How are they calculated?

Property taxes are calculated by taking the value of your current property along with the total tax rate (which is designated by the city) and then multiplying the two. The number that you get when you do this is the amount you will owe in property taxes.

Do I have to pay them?

Yes, if you own a home you are required by law to pay property taxes. Don’t be afraid by the number that you get every year. Most cities allow for a payment plan that breaks it up into smaller payments. If, however you rent the home, you do not have to pay for the property taxes; however, chances are your landlord has included that into the rent you are paying.

Are property taxes the same everywhere?

No, property taxes will not be the same everywhere. Property taxes will vary on the location – parts of a city that are much denser and there are a lot of services, their taxes will be much higher that rural places where there may not be as much services required. Some cities will offer a breakdown of property taxes based on location. Something to keep in mind though – property taxes are unavoidable and though they will vary on location, this should not be a reason to not look into moving to a specific community.

How can I prepare when paying for property taxes?

When you purchase a home, the previous owner or your real estate agent will be able to provide you with information on your property taxes. This information will include when to pay, how to pay and what is covered in your property taxes. It is important that once you know when your property taxes are due and how much that you plan and save for it. The last think you want is to have a lean against your home.

Buying a home is a big step for most, and paying taxes is never fun; however, it is part of our responsibility if we want to ensure our neighborhoods are safe and are roads and sidewalks are maintained. If you think you won’t be able to afford the property tax in an area, sometimes looking at homes that are below your allotted budget can help with this problem; however, it is best to not let property tax dictate where you live and what you chose to buy.

Whether you’re looking to buy or sell in the Kamloops area, for a greater probability of success you need a dedicated professional. I can guide you through the process and be counted on to protect your investment!

Categorised in: Buyers, Kamloops, Real Estate

This post was written by kamloopshomesearchcom