Property tax is unavoidable in this day and age, and first-time condo buyers can often be caught off guard when it comes to this subject. So we’re going to break things down in simple terms and explain the basics.
What is property tax?
The municipal government charges a property tax on all homeowners, and the amount is calculated based on the assessed value of your home. The money collected ends up being invested in the local community and essentially provides essential services that enrich the population (we will go into more detail below). Although, it’s worth mentioning that renters don’t pay this tax outright, as it’s typically incorporated in their monthly rental fees determined by the landlord.
Enriching your neighbourhood
You may have heard a real estate agent utter the words “location, location, location” before, meaning the surrounding neighbourhood is a huge selling point when it comes to potential buyers. But how does the city pay for garbage collection, public transit, police services, and water purification? Well, it’s through your property taxes because the city collects the money uses it to provide these essential services. Smaller, quieter areas tend to offer fewer services required, which usually translates to a lower rate.
Property taxes also pay for the upkeep, so if your street has a giant pothole that need to be fixed – you’re partially paying through your taxes.
Funding the public school system
In Quebec, we take public education for granted, but we fail to realize our property taxes mainly support the public school system. If you refuse to pay your property and school taxes (which is illegal by the way), you’re harming the education sector. The salaries of principals, teachers, assistants, and administrative staff rely heavily on this revenue generated from this tax, and it’s important we continuously invest in our education program.
The benefits outweigh the costs
Paying your property tax is essential and helps enrich and advance your local community. First-time buyers may be a little wary in the beginning, but it’s a part of being a homeowner, and it won’t make a massive dent in your bank account.
Some might argue that it’s better to continue renting a unit, but you’re throwing away your money without getting a real return on your investment. At least with a condo, there’s a good chance if you decide to sell your place in the future, you’ll make a generous profit.
If you’re looking for a new condo, consider one of DevMcGill’s innovative construction projects. Whether you’re a first-time buyer or not we have something to suit your needs. Visit our website or call one of our agents at 514-288-4737.
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