Finance and Cash Informations » Renting & Real Estate

Property tax in Europe

Tue, 04 Oct 2011 04:13:46 +0000

Within Europe, there are varying systems of property tax assessment and collection. Property tax systems prevalent in the western European nations differ from those in the central and eastern European countries. Most of the Eastern as well as Central European nations are
just developing a property tax assessment, and management systems.

Such taxes are essential source of revenue for local bodies, which undertake several works for common good, such as organizing free medical help, building roads, ensuring water supply, arranging for drainage and waste collection, etc. The official valuation of property often forms an important part. A percentage of such official valuation of property is collected as property tax.

This is the commonly understood property tax or the main property tax. In many countries such as Spain and France, this amount ranges between 0.5 and 1 percent of the official valuation of property but it may be higher or lower than these percentages in some regions. This type of property tax is often collected annually.

Periodically, the official valuation of property is revised upwards. Accordingly, the property tax too keeps on increasing. In addition to this property tax, there are other property related taxes such as those collected for drainage, and waste collection. These are comparatively lower and may be paid every quarter or every half year. Property tax in Europe may at times be based on the rent that the property can fetch.

This rental value may be determined from the records. It is also discounted as per inflation rate. In France, property taxes are differentiated between those that are to be paid by the property owner, and those that any person occupying the property has to pay. If the owner occupies the property, then he or she has to incur both types of taxes. The property taxes payable by the owner have to be remitted on or before the first day of January of every year. Such taxes, or part of such taxes, can also be transferred to the seller. This is necessary at the time of sale, as the property owner would be interested in paying only the taxes proportionate to the period for which such property is held.
But, any conveyance document should specify how much the person selling the property has to pay, and how much property tax is payable by the new owner. As far as the occupier’s share of property taxes is concerned, they cannot be transferred. These have to be paid by the occupier. But there are exemptions here. If the building is too old for anybody to occupy, then there are no occupier property taxes. Likewise, there are exemptions for occupiers who are over 60 years of age. Countries like France also collect property taxes on open land. Therefore, property tax is payable in respect of any lot on which there is no building. The rate of property tax on open area surrounding the building is different from the rate that is applicable for any building forming part of any property. However, no property taxes are collected from owners of specified type of agricultural lands. Likewise, people who purchase new properties do not have to pay any property taxes in respect of such property for two years.

Property tax in US

Fri, 23 Sep 2011 07:21:06 +0000

In the US, property tax rates differ from State to State and locality to locality. These taxes are the source of finance for counties, municipalities, or local governments, as the case may be. Such governing bodies are responsible for providing required infrastructure such as roads, power supply, water, gas, police protection, free medical facilities, schools, etc. Therefore, facilities available at a place have a direct impact on the rate of property taxes of that locality.
Apart from such facilities, other factors such as appreciation in land value and any improvement in building adding to the value of property also result in higher property tax rates. The size of the property, quality of construction, age of the property, etcetera are the usual factors that are considered while assessing the rate at which the property is to be taxed. Commercial properties are taxed more than any residential properties. Property taxes may also be levied on different types of business properties. In some jurisdictions, personal properties are also considered for determining property taxes.

Usually, the local government is the administrative authority for such taxes. There are local officials who assess such taxes based on the fair market value. In general, property tax rates applicable for homes in US may range from 0.2 percent to 4 percent of the property’s market value. For the purpose of this ratio, annual fair market value of the home is taken into consideration. This fair market value is often based on some recent unrelated sale of similar property in such locality. There are alternate methods as well for determining this fair market value. One of the important adress in US is the Department of Revenue

The income that the property can generate may be considered for assessing the property taxes. Depreciation in value of the property is also a method adopted to arrive at the market value of the property. The assessing officer intimates the revision of property taxes to the property owners. Property owners, however, are not obliged to accept that valuation or tax assessment. They may present their reasons to a review board of the local authority, and obtain a revision. Property taxes or part of the property taxes may, at times, be charged and collected by the State Government. In such cases, the property owner has to dispute the proportionate amount with the State Government’s property tax office. In some places, property owners assess their property taxes, but such cases are rare.

Almost all states also collect property taxes on any motorized vehicle that the person may own and register in the US. Property tax in US is payable for varying intervals. Such taxes are legally enforceable taxes linked to the properties.
This means any new owner of the property continues to be liable for any existing property tax liabilities. In other words, any sale of the property does not exhaust the liability. These taxes are also payable on or before a specific date. In the event the property owner defaults on such legal obligation, then the authority as the case may be can take possession of the property and auction it for recovering the dues, if any.

Renatal homes, free credit report

Fri, 16 Sep 2011 06:47:19 +0000

Rental homes become a necessity when the person is on transferable job and has to reside in a particular city or town for a couple of weeks, months, or years. Hotels and motels are an expensive option. Paying guest accommodations are hard to find. Finally, buying and selling homes is not very easy. Different states and countries have different set of rules relating to rental homes.

There are a few things that the owner of the property needs to check about the person to whom he or she is letting the property. Likewise, the person renting the home needs to inspect the home and check whether everything is in order before stepping in. In addition to these, there are some legal obligations for both the parties. The property owner needs to ensure that the home has the entire required infrastructure for being called habitable. Primarily this means that the house has access to water, power, sewerage, and gas.

Apart from these basic amenities, the house structure should be in a good condition so that the building remains in good condition for the entire rental period. Therefore, there should be no walls or roofs, or any part of them that are likely to collapse. In most countries, there are notices given to home owners if their buildings are too risky for living. Such notified buildings should not be rented. If not, there could be legal implications for the rental property owner. Such home owners also need to check the credentials of the person arriving to take the property on rent.

This means:

that home owners need to confirm
whether or not the person is employed
and whether he or she has a good credit score

This is a precautionary measure as it ensures that the rent would be received in time, and there would be fewer hassles. After the bombings of the World Trade Center, many countries have introduced laws for knowing the customer, and this includes knowing the person to whom the property will be leased. There are identification papers, passports, and such documents that have to be checked before letting the property on lease.

A record of all fixtures and fittings is to be maintained by the owner so that when the tenant is leaving, these fixtures and fittings can be recovered. Insurance is another factor that needs to be discussed by the landlord and the tenant. More often than not, in rental homes, landlord insures the infrastructure and the house construction.
Tenant has to incur the insurance for any losses due to thefts, or natural calamities. Such coverage would include the fixtures and fittings belonging to the landlords. Tenant should also inspect the premises at the time of entering to confirm whether or not there are any major repairs that are needed, such as any plumbing job, sewage job, electrical repairs, etc. These should be specified before entering into agreement so that it becomes obligatory on the part of the landlords to take up such works. Even clearing any molds and insect infestation is part of such inspection.

If necessary, services of a qualified property inspector can be taken to ensure that every part of the property being taken on rent is truly habitable. There are several websites these days that list the rental homes in various localities. How much rent is reasonable for a particular locality can be easily determined from these sites. Real estate brokers or agents help people in finding the right type of rental homes.

Reasons to own a own property

Wed, 03 Aug 2011 07:42:47 +0000

Owning a property makes a person financially secure. Let us consider the rent that is paid every month. It increases annually or biannual. However, any money that is deposited in banks or in government securities does not increase as regularly. Rental increases are compounded, i.e., the 10 percent increase in rental of this year would be added to the previous year’s rental charges to arrive at the new principal amount for the next year.

Therefore, if the monthly rent paid this year were $100, then next year it might be $110, and the year after that, it would be $121.00 and not $120. Unlike this, interest on government securities, corporate deposits, and bank deposits are not compounded. Over a period, this gap becomes insurmountable. This gap can eat away retirement savings very rapidly. It is not easy to generate income that matches with rental increases, especially at retirement.

Rent paid is an amount that is lost forever because it is an expense that leaves nothing in the hands of the person paying the amount even if the individual has been paying rent for several years. Unlike it, if the person buys property using loans, the installment paid leaves a property in the hands of the owner at the end of the loan term. Installments do not increase at regular intervals like the rents. Therefore, over a period, the ratio of such installment to the income of the person becomes negligible. In other words, the property owner does not feel the strain of paying the loan at later stages. Property owner can withdraw any built up equity, i.e., the value of the property that is free from loan, for any emergencies such as medical expenses, or education expenses, by mortgaging the property.

If the property owner is a tax payer, then taking loans for purchasing properties makes more sense. This is because the interest amount out of equated monthly installments applicable for the loan can be written off against income for the year, effectively bringing down the income on which tax is computed. Another tax advantage is related to capital gains. Capital gains are periodic increases in the value of the property. This amount is not taxed each year.

If, however, the amount invested in property were invested instead in government securities, the individual would have to pay tax on income from such investments, in each year. Therefore, capital gains to compound almost annually.

Unlike traditional valuables such as gold, and diamond, it is not easy to steal properties. There are specific procedures that are necessary for transferring any property. In addition, there are government authorities that can be approached for required assistance in case of any encroachment or for obtaining any details. The possibility of too many witnesses in the registration offices also prevents property thefts by stealing.

Do you like houses like this?

Owning any property is also a good way of estate planning. Since the actual value of the property can only be determined based on demand and supply at the time of sale, any taxes related to the property are paid based on estimates, which are always lower than actual value of the property.

How much money should I have saved to buy a new house?

Mon, 04 Jul 2011 12:09:42 +0000

Apart from the money that needs to be spent on getting the home,
there may be so many hidden costs that are involved.
We must also take into consideration these costs, when buying a home.
For instance,

one needs to pay for the insurance of the home
title insurance (for transferring the title to our name)
private mortgage insurance
water or property tax amount
some fees called state recording fee
survey fee
credit report fee
fee for document writing
pest inspection fee
origination fee
stamp duty

Solicitor’s fees to perform all the legal work, escrow amount,
appraisal fees and so on.

Many people wish to build their own home according to their own
interest and plans.

The cost involved will

change according to the builder
the raw materials procured
land area used
interior decoration
land value

and so on.
On an average, one needs to spend 65 to 110 dollars for one square
foot in United States, to build a house.
This involves the labor cost, profit earned by builder, land value and so on.

According to the US department of housing and urban development
the no of houses that have been sold in 2009 and 2010 includes
375 and 323 homes, respectively.
In 2010, 55 houses were sold under 150 000 dollars and 8 houses
sold under 750 000 dollars. Thus in US one can buy houses of the
price range between 150 000 to 500 000 dollars and can reach
even beyond 750 000 dollars.
According to the estimates of the economists, the new homes
(with the new raw materials, furnishing and new appliances)
will cost more, compared to the older refurbished homes.

In January 2011, the cost of homes for the older homes was
157 900 dollars and for the new homes, it increased
to 230, 600 dollars.

The cost of the house depends greatly on the location. A single bedroom home with 2 baths and square feet of 1000, built in 1930s is around 239, 800 dollars in Suffen, New York. A similar home in Copenhagen of New York is just 54 000 dollars. In Wisconsin, one needs to save at least 200 000 dollars to buy a 4 bedroom home of 1400 square feet (built five years ago). To buy a 5 year old home with four bedrooms and 3 baths, with 3428 square feet, one needs to save at least 320, 000 dollars in California.

What is the capitalized cash flow method?

Fri, 11 Dec 2009 11:54:10 +0000

Christopher B asked:

For assessing rental properties value ten points for assessing rental properties value ten points for assessing rental properties value ten points for who ever answers first and provides reference.

For who ever answers first and provides reference.

Cash flow method for who ever answers first and provides reference.

Are there any programs to finance debt into a new home purchase?

Thu, 10 Dec 2009 18:03:20 +0000

blackbronco92 asked:

Finance into the time of 35000 have heard have 10000 high interest auto loan would really like to finance into the time of.

Finance into the purchase have 10000 high interest auto loan would really like to finance into the time of approx 63000 will be purchasing.

An accepted bid of 35000 have to wait six months and then refinance but are there that could use to wait six months and then refinance but are there that could use to wait six months and then refinance but are there that could use to wait.

Is there a way to finance a home with poor credit?

Wed, 09 Dec 2009 16:31:47 +0000

Dolphin asked:

Finance the home with large property but do have poor credit it would be my poor credit past and finance the home of my first home of my first home with large property.

What is the best way to finance a new home purchase and addition simultaneously?

Wed, 18 Nov 2009 21:36:51 +0000

Jim asked:

Finance this all at the best way to add two bedrooms and plan to add two bedrooms and.

What is the best way to finance the purchase of a storage units facility?

Wed, 18 Nov 2009 03:10:29 +0000

GoPack asked: I’d like to buy or build something like Public Storage. What’s the best way to know where to build, find the land (or existing storage facility) and finance the purchase? Related posts: Are there any programs to finance debt into a new home purchase? Purchase Order Finance – Your Tool For Unlimited Sales … Continue reading Related posts: