As reported by the Edmonton Journal, most Edmonton home owners are in for a jolt when they receive their 2011 tax assessments from the City of Edmonton. That’s because after two years of declining prices, Edmonton’s 2010 property value assessments jumped an average of 9%.
Overall, the City of Edmonton assessed 319,608 properties worth $134 billion. The average home price in 2010 was $363,000.
Property value assessments are made up of a number of factors, including location, features, current selling prices for comparable properties, and more. In addition, neighbourhoods play a significant factor in overall value increases (or decreases). For example, Mactaggart and North Glenora are seeing average 20% price increases, while Windermere and Oliver are seeing average price decreases.
On average, Edmonton home owners are in for a 3.85% tax increase, since that’s the amount City Council approved back in December. Home owners whose property values exceed the 9% average will pay proportionately more, while those whose property values declined less than the 9% average will pay less.
While nobody likes paying taxes, if you’re in store for an increase, here’s some good news, at least: you still have a few months to save up – the first bill isn’t due until May.
My Advice for Edmonton Home
If you’re renting, then you should expect to see your landlord pass on the increase to you – which is another incentive to take the smart step into home ownership. Frankly, while you can’t avoid property tax increases, you should at least pay them on your own property and not someone else’s! Furthermore, as a home owner, if you use part of your home to run a business, you may be entitled to write-off a portion of your property taxes (relative to the amount of space you use in your house to run your business) when you file your taxes.
My Advice for Edmonton Home
If you’re thinking of selling, then the property tax increase may push your home outside the affordability range of some potential buyers. However, if your home is strategically positioned in the marketplace, professionally staged, and marketed the right by an expert Edmonton Realtor using all kinds of channels (including Internet exposure, MLS and Open Houses), then you’ll be on your way to a successful and profitable transaction.
Contact Me to Buy or Sell your Home
I specialize in helping first time home buyers and sellers achieve their real estate goals. I’ll help you understand the implications of this property tax hike, and create a customized strategy that positions you to succeed – either as a home buyer who incorporates this increase into your overall budget, or a home seller who ensures that you maximize the value of your home and present it to qualified, targeted and motivated buyers. Call me at 780-709-0811 – I’m here to help!