Nobody wants to pay more than necessary to the government. That’s why many home buyers look for areas with lower property taxes.
Before you write your offer, consider these little-known fees and taxes that may increase your overall expenses.
How Property Taxes Impact Your Monthly Payment
When you buy a home with a bank loan, your monthly mortgage payment includes principal, interest, taxes, and insurance – commonly known as PITI.
Lower Property Taxes Don’t Equal Lower Cost
If Dublin taxes seem high you could move to an area with lower property taxes, like a township in Delaware or Union County.
While your property taxes may be much lower, many unincorporated areas as well as a few cities impose a School Income Tax
Here are some Central Ohio School Districts that charge a school income tax (click here for the complete list)
- Jonathan Alder
- Madison Plains
- Teays Valley
- Bexley
- Big Walnut
- Buckeye Valley
- Canal Winchester
- Pickerington
- Reynoldsburg
Other Hidden Cost You Should Consider
Condominium Fees can make a big dent in your monthly budget. Costs vary widely starting as low as $100 per month up to $500 and more.
Condo fees often include water and trash service, as well as property insurance. So, you’ll see some savings over single family homes. Sometimes condo fees are higher to build reserves for capital improvements, such as roof replacement.
Homeowner Association Fees are typically charged on an annual or quarterly basis. They run between $50 and $150 a quarter and mostly cover landscaping for common areas.
You will encounter much higher association fees for patio homes, as they include fees for a club house, fitness center, and swimming pool.
Special assessments should be disclosed if known to the seller. However, it is good practice to check with the building department and local tax authority on any upcoming assessments that may impact your tax bill.