With rising home prices and increased property taxes, the cost of homeownership is surging. And although Texas homeowners don’t see the spike as much as other high-cost housing marketing across the U.S., the explosive rise in tax expenses is taking many Texas homeowners by surprise.
It’s estimated the price of homes during 2021 escalated 16% so it’s not a big surprise property tax values have increased as well. Analysts, however, find the number surprising. They see a gap between the increase in home prices and property taxes, and they see this uptick in rising costs continuing into the next year.
The Financial Consideration of Homeownership
Texas residents enjoy the absence of a state income tax; however, this routinely adds to the cost of property taxes. For instance, the Dallas/Fort Worth metroplex ranks among the highest metropolitan area in the U.S and averages some of the highest property tax increases. This surge in property taxes and rising mortgage rates means a significant rise in the cost of homeownership.
With enough luck, home shoppers can find their dream home at a price they can afford. And if swift in making an offer, they can beat the competition and close the deal. However, what many new or soon-to-be homeowners fail to realize is the real cost of owning a home. Not only do they pay a monthly mortgage, but they also pay an annual property tax or allocate funds each month in an escrow account. Add in rising utility costs and price of goods, insurance, and home maintenance, and the home may not be so affordable after all.
Homeownership has its upside and downside, and it’s important to take financial considerations into account when buying a home. Consider the regular day-to-day living expenses and all the above mentioned costs associated with owning a home… property taxes, insurance, mortgage, and maintenance. Check your debt-to-income ratio. Your expenses versus your income can give clues about a home’s affordability. These factors can help you determine if the price of a home is right for you and if your financial circumstances can withstand the rising cost of property taxes.
Get Your Property Taxes Paid Quickly
Home Tax Solutions helps Texas property owners pay their property taxes quickly. Simply apply online, schedule your closing, and get your property taxes paid. With no credit check and low fixed rates, you can protect your property and get peace of mind.