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Can you plan ahead when it comes property tax?


Ella
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I am wondering if you can do this in a logical manner. 

Property tax goes up and down year after year. For someone looking to buy their first home, this can set them up for failure if they are not prepared for the cost to go up. I have heard of people whose property tax had gone up  nearly $200 a month and for someone on a tighter budget, that can be terrible. 

Is there a way to calculate and plan for this if it happens when buying a home? I am asking for a friend of mine who is house shopping right now and is worried with how tax-heavy the government is getting lately. 

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Where I live we have property taxes once in the winter season and once in the summer season, usually around $250 or so each go around. So I tend to save a little bit of money through the year and I have both payments set and ready to go each time. I'm sorry to hear you have property taxes every month. Where do you live that it charges per month? I guess you must live in a decent house to have to pay that much. I live in a trailer home and own my own property, but that's it. 

I'd say count up how much you've paid already and calculate the average per month, and consider that to be what they may ask for each month. That's what my uncle does, and sometimes he's right, sometimes he's not. But you won't always be right if they charge differently each month. 

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Property tax is paid every 6 months. Are you adjusting to the cost to cover it each month? I would imagine this is what you meant. Most property taxes in my area average around $4,500 per year which is $2,250 every 6 months or $375 monthly. I live in a higher taxed area but we have some of the best schools in the area as well as a stellar police force. You do get what you pay for when you pay higher taxes if schools and public services are important to you. 

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Yeah you can look backwards at how much property taxes go up every year in your area. Then you can find the average increase and project the future so you know what the property taxes will likely be in the years to come. 

Property assessments take place yearly and they tend not to jump to much unless your area has seen a huge supply and demand problem and the value of land is skyrocketing. 

Most of the time when you have a mortgage the bank bundles together your mortgage, insurance, and taxes so the payer does not even really need to worry to much about it. 

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  • 2 weeks later...
On 9/20/2021 at 3:25 PM, James said:

Yeah you can look backwards at how much property taxes go up every year in your area. Then you can find the average increase and project the future so you know what the property taxes will likely be in the years to come. 

Property assessments take place yearly and they tend not to jump to much unless your area has seen a huge supply and demand problem and the value of land is skyrocketing. 

Most of the time when you have a mortgage the bank bundles together your mortgage, insurance, and taxes so the payer does not even really need to worry to much about it. 

If it is bundled in, does this mean the cost will go up every year? I am trying to get an idea of how this all works myself! lol

It seems like it is done at random. Like I read online that people recommend not making your yard or house exterior "too nice" as it can increase your property taxes. What the heck is that about?

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5 hours ago, Emma said:

If it is bundled in, does this mean the cost will go up every year? I am trying to get an idea of how this all works myself! lol

It seems like it is done at random. Like I read online that people recommend not making your yard or house exterior "too nice" as it can increase your property taxes. What the heck is that about?

Well it is really dependent on the neighborhood and what is happening around you in the market. The way that real estate values have been skyrocketing property taxes will likely follow. 

It has been a long time since I have had bundled property taxes and insurance with my mortgage but my understanding was money was held in escrow by the bank to pay these bills on your behalf. Yes there may be minor adjustments over time but it all equals out in the end. 

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