Would-be buyers tend to overlook this carrying cost, study says
In a new report, real estate information portal Zoocasa compared the property tax rates of the nation’s hottest metropolitan housing markets, along with the widely varying economic fundamentals that underline these figures.
“Home buyers often focus on the home price when considering affordability, but often overlook the carrying costs such as property taxes, which can be a significant on-going expense,” Zoocasa noted as the motivation for the study.
Amid widespread concerns about housing costs and interest rates, Canadian home buyers have access to multiple locales of relative affordability – but these places are not necessarily those where property taxes are the lowest, Zoocasa stated.
Read more: Sudden price decline comes with great danger – MPC
Comparing the rates for each market as of July 2018, the cities with the lowest property taxes on a home assessed at $1 million are as follows:
- Vancouver, British Columbia - 0.24683% ($2,468 in tax vs. a $1M home)
- Abbotsford, British Columbia - 0.51300% ($5,130 in tax vs. a $1M home)
- Victoria, British Columbia - 0.52035% ($5,204 in tax vs. a $1M home)
- Kelowna, British Columbia - 0.52605% ($5,260 in tax vs. a $1M home)
- Toronto, Ontario - 0.63551% ($6,355 in tax vs. a $1M home)
Meanwhile, the markets with the highest property tax rates were:
- Saint John, New Brunswick - 1.78500% ($17,850 in tax vs. a $1M home)
- Fredericton, New Brunswick - 1.42110% ($14,211 in tax vs. a $1M home)
- London, Ontario - 1.35082% ($13,508 in tax vs. a $1M home)
- Hamilton, Ontario - 1.26196% ($12,620 in tax vs. a $1M home)
- Winnipeg, Manitoba - 1.24871% ($12,487 in tax vs. a $1M home)
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