[general surfer]

Hi Guys,

have a question, property assessment higher the better or lower better, if higher means pay higher property tax, also maybe good for re-sale? any advise? what if got assess lower, is it mean the property worth not as much? i'm kinda confuse about this one since i'm on MPAC and try to see info, any input would e greatly appreciated!

Thanks

 

[DSC]

MPAC has a formula to assess property values and it is explained in their website http://www.mpac.ca/ :

"To establish your property’s assessed value, MPAC analyzes property sales in your community. This method is called Current Value Assessment.

It is used by most assessment jurisdictions in Canada and throughout the world. In addition to sales, we look at the key features of every property. As many as 200 factors are considered when assessing the value of a residential property. Five major factors usually account for 85% of the value:

location;
lot dimensions;
living area;
age of the property, adjusted for any major renovations or additions; and
quality of construction.
Other features that may affect value include: number of bathrooms, fireplaces, garages, pools, whether properties have water frontage, and so on.

We analyze the key features of your property with sales of comparable properties in your community to determine your assessment.

To learn more about how MPAC assesses properties, view some of the brochures below or contact us."

Though a purchaser may look at the assessed value I think the most important thing is what the asking/offer price is and a lower assessed value means lower taxes. Following the 'bird in the hand' rule I would opt for lower assessment myself!

 

[Eug]

The MPAC assessment doesn't really have that much effect on sale prices of homes, at least in my limited experience.

So, IMO, the lower the MPAC assessment the better.

 

[azureray]

The MPAC assessment doesn't really have that much effect on sale prices of homes, at least in my limited experience.

So, IMO, the lower the MPAC assessment the better.

Question, what's the standard downtown core property tax for a 450K 1 + 1 condo unit?

I checked Tridel's price list and the projected property tax is very high, for a $464,000 unit its $330.52 per month...

 

[Observer Walt]

I'll agree with Eug that assessed values are relatively low on a list of things that purchasers look at. Sensible purchasers look at sales of other properties that have recently happened in the area, and the competing properties that are currently on the market.

Question, what's the standard downtown core property tax for a 450K 1 + 1 condo unit?

I checked Tridel's price list and the projected property tax is very high, for a $464,000 unit its $330.52 per month...

Sales offices generally quote 0.85% of the sale price, as an approximate but fairly accurate guide to anticipated taxes. This reflects the 2009 residential tax rate for Toronto. It will vary in other municipalities.

In your example, $330.52 x 12 months = $3,966 per year, which is just about 0.85% of $464,000.