Wednesday, February 3, 2016

Tax Abatement - Good or Bad?


At first glance a Tax Abated condo looks like a really great deal, after all anytime we can pay less in taxes it’s a good thing! However, it is always wise to ask a few questions before jumping into the pool of buyers looking for a tax abated condo.

First question you need to ask is when does the tax abatement end? Do some research if it ends soon and see approximately what the unabated tax will be on the condo. The auditor’s office can generally help you with this type of research. If the abatement ends soon, be prepared to increase your housing budget by that much.

Second question is there a chance the abatement will be extended? If the answer is yes go a little deeper, has the request been made and if so when will they know the answer. Extensions are not a sure thing.

On the positive side if you are looking at a home that is tax abated and it’s going to be quite awhile it can be a really good thing! If you are paying on a $400,000 condo with a tax abatement it drastically reduces your monthly costs. Based on a tax rate of $7000 per year you are knocking off  over $500 in housing expenses per month. So possibly you can get more condo than you expected!

There is a good side to an abatement and a scary side – just be sure you are informed and working with an agent that knows the questions to ask before you  buy. If you are ready to start your home search!
   

When your ready to buy or sell please give me a call for a FREE NO OBLIGATION consultation!
My direct phone number is 330-304-9015 my office number is 614-383-7937

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