Seven most commonly made mistakes investors make when buying property in the USA – Pt3
3. CITY TAXES
As property owner you are required to pay city taxes. Similar to any council tax system, the money is used to pay for rubbish removal and local emergency services amongst other things.
Each property has an assessment by a government official every 4 years. This assessment sets the taxes for the property and the market value. Often the ‘assessed’ value is incorrect. Sometimes it can be higher than the market value, sometimes lower. Because these taxes affect your overall profit it’s always good to buy properties where the taxes are low. However, this often means buying in less desirable areas. Be careful with assessed values, use your professional property finding service that knows the areas and can research comparables for you properly.