Have you have outgrown your current residence? Do have a generous down payment available and good credit? You got there by watching your expenses and following reasonable budgets. You work hard. You don’t waste your money. You have $9,000 allocated for property taxes, how much property can you buy and stay within your budget? Or have you have been pre-approved for a $500,000 mortgage and decided to build your dream home?
Where do you begin looking for that new home or building site?
|Property Valuation for $9,000 in Taxes||Tax Rate||Property Taxes on $500,000 Home||Additional Investment @ 5% Required to Pay Variance with Durham Taxes|
If your $9,000 budget for property taxes is firm then only look in Portsmouth or Greenland to build your dream home. If you have more flexibility in your budget then the fifth column above (Additional Investment) is the investment at 5% required to fund the variance between Durham’s property taxes and the other communities. For example, Durham’s property taxes are $2,585 higher on a $500,000 property than Madbury’s. In order to pay that $2,585 each year, you would need to have $51,700 invested at 5%. Conversely, you could say that by building your home in Greenland you saved $149,100 more than if you built in Durham.
Actually the numbers above are very conservative. When was the last time a Town held their tax rate consistent year after year? If both Towns increase their tax rates by 2% then the variance along with the required Additional Investment will increase by 2%. Unless drunken sailors take control of Madbury or Durham’s Town Council comes down with Fiscal Constraint Syndrome (FCS is apparently not contagious), the variance in local property taxes will not change and most likely increase.
Do you want to invest in real estate or pay property taxes? Where will you begin your search?