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Old 2018-06-25, 01:25 PM
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gerapau gerapau is offline
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Originally Posted by reens09 View Post
The only thing i can really see it affecting is your mortgage qualification if you are already close to your maximum purchasing power, but if you are not then you should be fine.

Property tax is 1% of the property value that will be assessed by the city after closing. Any upgrades are likely to increase your home value regardless of how you pay for them so even if you pay for your upgrades upfront and the purchase price remains the same, your property tax will likely increase as opposed to if you left everything basic. Some upgrades are more valuable than others, such as hardwood, upgraded counters, cabinetry in the kitchen etc.

We put approx. 50K of upgrades that we paid for upfront (including the design centre bonus we received) and i am fully expecting our property taxes to reflect this. Same with if you finish your basement afterwards, that will increase your taxes.
For the most part upgrades do not affect your property taxes. There are certain upgrades (adding a finished basement, adding a bathroom, adding a bedroom, etc...) which may but most don't (upgrades to counters, tiles, carpets, etc...). So if you and you neighbor buy the same model and have the same sized property and you add $50K in upgrades and your neighbor adds $25K you can expect to pay roughly the same taxes.

That said, if you do go really overboard and add a lot more than the normal in upgrades then they can evaluate you higher.
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