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Financing, Mortgages and Insurance What options are best for you and your situation?


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Old 2012-05-24, 08:29 AM
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Zorro Zorro is offline
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Default Property Taxes & Banks

Hi,

I was wondering how this all works since; technically the city doesn’t assess the property for close to a year (from what other people have said).

Now at closing I know that I’ll be paying the ‘Land portion’ of the property taxes back to the builder (if they have prepaid for the whole year) for when I move in (June 26 in my case).

If I combine mortgage & property taxes…will the bank only charge me a portion of the taxes?

Also I’ve heard that 80% of purchase price is a good estimator for property taxes…can anyone confirm this?


Thanks!

Zorro
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Old 2012-05-24, 09:07 AM
Stitts Stitts is offline
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I suggest you tell the bank how much you would like to pay for your property taxes. Most likely they will not calculate the correct amount which will result in a large deficit come tax time (meaning afterwards your property tax payments will significantly increase in order for you to catch up).
Once you figure out roughly how much they will be, you can do the calculations from there.
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Old 2012-05-24, 09:15 AM
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good2know good2know is offline
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short storey is mpac advised by city of completion

they do the assessment and provide that to city a couple times per year

city will issue a supplementary tax bill to catch up

go to city websie for calculaor 80% of purchse is good ballpark
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Old 2012-05-24, 10:13 AM
nasdaqbull nasdaqbull is offline
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I'm sorry I'm not following! How is 80% of the purchase price a good estimate? If I bought for $100k my taxes would be $80k!!! Sounds a little off!
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Old 2012-05-24, 10:18 AM
homeshoppin homeshoppin is offline
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Originally Posted by nasdaqbull View Post
I'm sorry I'm not following! How is 80% of the purchase price a good estimate? If I bought for $100k my taxes would be $80k!!! Sounds a little off!
They mean with the calculator on the website, you need to input your purchase price first. So enter in only 80% of that and the calculator will base its calculations from that.

Once you see it you will get it. I was wondering wtf first too and then I remembered. LOL.
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Old 2012-05-24, 10:33 AM
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Thanks…yes I meant using 80% of purchase price when using the city estimator/calculator.

Now what I’m finding confusing is the timing of the taxes. As far as I see, taxes are due in March & June for the particular year.

So if I move in June 26/’12, does that mean that once March of next year comes around will I have to pay for (June 26 to Dec.31/’12) & for half 2013?

thanks!
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Old 2012-05-24, 10:41 AM
Almost_Home Almost_Home is offline
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Quote:
Originally Posted by Zorro View Post
Thanks…yes I meant using 80% of purchase price when using the city estimator/calculator.

Now what I’m finding confusing is the timing of the taxes. As far as I see, taxes are due in March & June for the particular year.

So if I move in June 26/’12, does that mean that once March of next year comes around will I have to pay for (June 26 to Dec.31/’12) & for half 2013?

thanks!
Yes, I remember getting two full years at once at our last home and expect the same again.
So start saving so it doesn't come as a complete shock....lol
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Old 2012-05-24, 10:43 AM
homeshoppin homeshoppin is offline
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Quote:
Originally Posted by Zorro View Post
Thanks…yes I meant using 80% of purchase price when using the city estimator/calculator.

Now what I’m finding confusing is the timing of the taxes. As far as I see, taxes are due in March & June for the particular year.

So if I move in June 26/’12, does that mean that once March of next year comes around will I have to pay for (June 26 to Dec.31/’12) & for half 2013?

thanks!
It depends on how quickly the city assesses your property.

For us, we moved in Sept 30/09 and paid taxes on land only. In January we received a supplementary bill for the last 3 months of 2009 ($600). February of 2010 we received a bill for the first half of 2010.

The best idea is to call the City and sign up for their direct payment plan for 10 months (Jan-Oct) so you pay every month on the 15th and don't have to worry about a big bill twice a year. You must sign up by Jan 15 of something like that though.

If the City assesses your property soon enough then yes, you will owe two bills at the same time. Sucks eh?
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Old 2012-05-24, 01:35 PM
Stitts Stitts is offline
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A simple way to look at it for payments if you are moving in June 2012.
By June 2013 you will have had to save for the remainder of 2012 (June -Dec) and all of 2013. So say your taxes are 4k per year. You will have to have approx 6k saved by June 2013.
This just gives you a ballpark of the amount you will need. After June 2013 bill you would reduce your payments back to a normal amount.
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Old 2012-05-24, 10:49 AM
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Oh man that's crazy!! :S
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