Home Tech Tech n business Top 5 Tips to Reduce Real Estate Tax | Lowering Property Tax

Top 5 Tips to Reduce Real Estate Tax | Lowering Property Tax

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Territories across the world are charging duty from residents for their assets, automobiles, utilities and domestic purchases. Especially property taxes are the permanent financial burden on homeowner they kept on paying as long as they possess the ownership. Even if the mortgages are paid, dues remain the constant payment that tends to increase once the state government revises the rates or an owner started generating income from it. Although asset dues can never be zero, asset owners can significantly reduce and save amount from it. Here I am sharing few real estate tax tips to help all the homeowners worried due to increasing rate of tariffs.

How to Lower your Property Tax:

1. Study property tax card

Don’t assume all the owners in your neighborhood are paying the same amount. Being a homeowner, it is necessary for you to know the criteria for deciding rates. Visit the local assessor’s office and request him to give you the card to see the information they have compiled about the locality. This document will give you complete information about the size of unit, room dimensions and fixtures used in the property. It also includes special information like renovations and improvements made in the separate section. Carefully analyze this document and compared with standard rates advised by Governmental authorities to find out any inconsistencies and discuss with the officer. He will conduct the reevaluation and make rectification. Mistakes are common and there is no harm to confirm and rectify.

2. Avoid prominent extensions

Unless you need it avoid making major structural changes just to add the touch of luxury. Constructing a deck, pool or shady sitting area no doubt look amazing but it also adds up a significant amount in the annual charges. Being a homeowner, you should not neglect these aspects while planning a renovation project. To avoid trapping hard earned money in paying dues, investigate with the authorities before making renovations just to enhance the beauty. Save your money to decorate and equip the interiors. However, regular maintenance to conserve the existing structure are acceptable and don’t increase charges.

3. Ignore enhancing the curb appeal

However, authorities provide strict guidelines to evaluators to follow while inspecting properties to implement tariffs. There is always a possibility an assessor follows a certain amount of subjectivity while deciding rates. Houses that look attractive usually get a higher value as compared to a unit with a less physical appeal. Don’t forget the neighbor and other properties in your vicinity. Don’t put extra money just to stand out and make it unique in the location. It will not even pay you well for renting or reselling. Buyers and tenants always compare the rental charges and housing prices in an area to select a unit. No one will pay for the attractive exteriors.

4. Compare the amount with others in the neighborhood

Keeping all the factors in mind about property taxes you may have estimated the rate for your house and end up with a significant difference; then it’s time to research the community to see the amount they are paying for tax. Discuss these discrepancies with your evaluator and ask him to reevaluate to fix the amount. However, always follow the rule and don’t compare apples and oranges.

5. Be there at the time of assessment

Don’t blindly trust on assessors and always call them on a suitable time when you are available at home. It has been observed that inexperienced homeowners allow officials to stroll their place, which is a wrong practice. Few of them only note down the upgrades you may have made for the comfort of your family while overlooking outdated fixtures and implement higher taxes. To avoid this situation walk along with him and notify the deficiencies as well.

Summary:

Before concluding, I’d like to mention the name of one Dubai-based real estate consultant for sharing valuable inner insights on the ‘property’ related tax management. Don’t go extremes just to reduce the real estate taxes, rather try to maintain a good balance while making efforts to control the high tariffs. 

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I am a kind of person who thinks a lot, read and write on different genres of topics to satisfy my own quest of finding answers against different twisted scenarios. Real estate is my favorite area of writing, I have been in digital real estate for a while and currently holds a position in a property management company.

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