Quote:
Originally Posted by housejunk
The only thing that comes with high property values are higher taxes.
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While a common preception of reality, it is in fact false.
Taxes do NOT go up with home values.
Taxes go up for a home owner when (A) the city raises taxes or (B) their home
appreciates by more than the average home in the city.
So if the city sees 40% home price growth and your house went up 40% in value then your taxes should stay roughly the same. If it went up 60% then your taxes will go up and if it went up 'only' 20% they will likely go down.
The base amount of taxes is simply split among home owners based on home value compared to the city average.
Of course that base amount itself does go up, usually by ~4%/year, but this is quite reasonable when you consider that inflation is about the same (and inflation for the city, whose 'basket of goods' is different then the average consumer, sees inflation of 5%-7%/yr+).
(Income taxes by comparison take a set percentage of your wage as it goes up, and as such grow with inflaiton without seeming to have been raised directly.)
Calgary also has some of the lowest property taxes in Canada.
Claeren.