One of the most overlooked costs that goes into owning a home is property tax. Most longtime homeowners know that property tax hikes are unavoidable but new home buyers are probably not going into the process expecting their taxes could increase anytime soon.
Studies show that state and local property tax collections nationwide have been on the rise since 2006. It is very important for a new homebuyer to research property taxes before making an offer. Property taxes can be calculated differently based on your location but are for the most part based off the value of the home.
Once you evaluate the property taxes take a look at your budget to make sure you will be able to afford your monthly payment with this added cost, as well as leaving extra room in the budget for potential tax increases.
While property taxes can be a burden they are in place to benefit the community we live in by funding schools and libraries as well as firemen and police officers.