Real Estate Investing: The Best and Worst Markets for Property Taxes
April 2, 2015
Depending on where the property is, paying property taxes on real estate you own can be a curse or a blessing. For real estate investors, it’s normally the second biggest fixed cost they need to consider, next to their monthly mortgage payments, when calculating potential cash flow on investment properties.
Although they can be averaged out at the state or metro level, setting property tax rates is usually a function of city or county government, since the money collected goes to pay for public services, such as police and fire departments. With a wealth of new data added to its database, RealtyTrac recently released the results of its first-ever study of property taxes, called the "U.S. Property Tax Rates Report for 2014."
“The highest tax rates are on people who have owned between five to 10 years and 10 to 15 years,” says Daren Blomquist, vice president at RealtyTrac. “Those tend to be the people who are still feeling the worst effects of the housing bubble.”