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Tips in Reducing Property Tax

Owning a home undoubtedly gives a person a feeling of satisfaction and security. However, living in the real estate bubble and with the rise of home prices, it’s not that easy to have one. Not only must a person think about house construction or renovation, but there’s also property tax to think about.

Property taxes are the assessed taxes on real estate as well as other personal properties, including those owned by the government and private entities. The tax rates vary from one place to another depending on the assessment of the property. A tax authority uses some metric in determining the assessed value based on the percentage of the comparable sales or the current market value.

How to reduce the property taxes?

If you have noticed that the assessed value of your property is too high, don’t fret because you have the right to file an appeal. In order to get a real edge and have your property tax reduced, here are some tips to follow:

  • Ask help from the tax authority – Filing an appeal to lower the property tax involves a set of steps. That’s why it’s important to seek the help from a tax authority so that you’ll know the best way to do it.

  • Find the value of the assessment – As a taxpayer, you have all the right to know the real and current value of your home. Otherwise, you’ll end up paying property taxes higher than the actual assessment.

  • Determine the current sales value in your area – To know the current real value of your property, the best thing to do is to research for the current sales value of other properties similar to yours. You can do it online; however, the value you’ll find there is just an approximate, and you can’t use it as evidence in filing your tax appeal.

  • Consider a property appraisal – Property appraisal is a procedure that should be performed in order to know the value of your property. The appraisal usually includes the features and size of your home and a comparative report with a similar house.

  • Minimize structural changes – Building additional structure in your house, such as a pool, a deck or any permanent fixture will weigh down your property tax. That’s why, before building new structures, homeowners must know their additional cost first.

Prior to filing an appeal, you must gather the necessary pieces of evidence that you can use, including all relevant house photos. However, not all people can win an appeal. Most of those who end up with a property tax that is more that they can afford resort to taking out a mortgage. If you’re living in Toronto area and you want to seek help from professionals, the best thing to do is to hire a mortgage broker who can help you solve your tax problems.

Conclusion

Buying your dream home is exciting; however, it can also be stressful, especially once you receive your property tax report. Mortgage broker Toronto aims to help clients own a house without suffering from a high assessment of property tax.

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