How Property Taxes Affect Home Affordability

[Bette Hochberger]

Prospective homeowners, consider property taxes when budgeting for your home. They can vary widely and significantly impact the overall cost of homeownership. When calculating what you can afford, factor in these taxes to avoid surprises. Sometimes, a more expensive home with lower property taxes can be more affordable than a cheaper home in a high-tax area.

[Spencer Abeyta]

Insurance is important to factor into the rental equation as well. The past year we have had insurance prices increase up to 40% for some owners. This can mean an increase of $100 per month in costs. In many cases, the market has not supported a $100 increase on the tenants to cover the cost. This causes owners to take a cashflow loss of $25 to $50 per month.