In some of the newer subdivisions in the Houston area, there is a tax for the development and operation of the water and sewer system. This tax stays in place for several years until the cost of infrastructure is paid off.
Here is a definition from the Houston Chronicle.
Municipal utility districts, which install and operate water and sewer systems in many new neighborhoods outside incorporated cities, frequently charge homeowners $1.50 to $2.50 per $100 assessed valuation to pay off the costs of the infrastructure. That leads to neighborhood property tax bills that are wildly inflated for several years until the MUD costs come down.
Hi, I live in Chicago and am considering buying a SFH in the Dallas area. I have a business partner who live in Mesquite, Tx. so he will be my prop. manager/assistant for the area.
A 4bed, 2bath home worth around 125K-150K. Does anyone know how much the property taxes and home owners ins. runs for a home like this. I will be buying in a middle class area. Are their some suburbs that have cheaper property taxes than others, but would still be considered “middle class” nice areas to live? I am trying to gage about how much I will need to pay for the prop. taxes and home owners ins. In my area of Chicago I pay 3400/yr for a 300K appraised home and home owners ins. is about 550/yr.
James
First, sit down. Property taxes in “most” metro areas are going to be about 3% of appraised value. TX appraises at FMV. There will be no “homestead exemption” as it won’t be owner occupied, so on $150K you’ll be paying about $4500/year.
A “Fire and EC” insurance policy will run you anwhere from about $1100-$1800. The good news is that TX allows 3% deductible now which will probably put you on the low end of that. The bad news is if you’re credit isn’t really good, or if you’re a minority you’ll be at the upper end.
I’m sure a Realtor will tell you that our political heroes (state lege) just passed a ppty tax cut, and that the (moron) Governor’s radio ads tout that the cut will save the “average” homeower $2000*. In actual fact no one can tell where the $2000 number came from, the true number is about $1500, and that is OVER THE FIRST THREE YEARS of the cut!
On the plus side we do get appreciation of about 3%/year now in TX big cities.