New Homes Construction & Taxes
A buyer of mine was looking at new construction homes as a viable solution to purchasing a home. In fact, I have a number of buyers that are looking at new construction as an option. Hey, let's face it .... there's just as many short sales and foreclosures in new construction homes as there are in the existing homes.
In a later post, I'll be talking more about taking advantage of this marketplace to buy a new construction home with builder financing or other alternative financing methods in today's marketplace. But for now, the subject that my buyers are always asking me is "what about the taxes?".
Well, in brand new construction, at least in Illinois, the taxes do not kick in until 2 to 3 years after the homes have been built and the complex or subdivision has been established. But, once those 2 to 3 years hit, the taxes kick in and, as I've told my buyers so many times, when they do they will affect your mortgage payments. Your mortgage payments will increase depending on the taxes placed on your home.
This a difficult concept to understand. Buyers need to realize how important this knowledge is as 2 to 3 years down the road, this knowledge will help them understand the reason behind their mortgage payments being increased.
Realtors need to take the time to forewarn their buyers about this scenario as it WILL happen. This is a discussion that really needs to be addressed when you have your buyers out and they're looking at new construction of any sort.
If you'd like to learn more about how your taxes affect your mortgage payments when purchasing a new home, please call Karen at 847.989.4885 or email Karen at karen@carypropertypros.com.
Comments(0)