Columbus, Ohio
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Buildings built around 1925 (old = high insurance)
Suburban tax rates have gone insane!
Average=25%-30%
Sorry that was a vague message, my computer was messing up. But I would think the percentages should be similar across the country, if insurance and taxes are higher then I would expect rent to be higher. I know thats not completely true tho, by the numbers buying a cheaper house in a bad part of town you have lower taxes(not nesc insurance though) but you also take more of a risk being in a bad neighborhood.
Not all areas have uniform property tax rates, or uniform insurance rates. Hazard insurance rates are often regulated by the state insurance commissions. Property taxes are assessed by each county and their valuation methods are not uniform across the nation.
Similarly, rental rates depend upon local economic factors. An area with a depressed economy will have stagnant rents while a booming market area will see rents increase almost as fast as the median housing price.
If you just want a number, use 15% of your annual projected rent to estimate your property tax and hazard insurance costs. Realize that property taxes and hazard insurance premium rates do not change linearly with rental rates. For instance, if rents stay the same or decline in a soft market, your property taxes and insurance premium do not also decline. So if you just want a number, use 15%, but that is just a number until you get accurate estimates for those expenses.
It realyl depends on the mortgage agreement that you have, in my opinion. If your mortgage is fha or any type of hud property - you had better live in it for at least the length they tell you to.
One of my mortgages once said something to the effect of "Owner must live in the property for an unspecified amount of time" It needed some fix up, so I lived in it for a month, fixed it up and then rented it out.
Here builders are putting in the contract that buyer must hold the property for a year if they sell profit goes to the builder. Was it considered afforable housing? If so I would say you need to hold it for a year. If it is a HOA I would say to check with them too
too broad of a question.
Taxes:
1. Depends on location and tax rate
2. re taxable assests
Insurance
1. coverage,
2. deducable
3. Type of property (SFH, duplex, 4-plex...)
Personally my escro is about 10-20% of rents
Columbus, Ohio
****Must participate a while before posting URL's***surance
Buildings built around 1925 (old = high insurance)
Suburban tax rates have gone insane!
Average=25%-30%
Sorry that was a vague message, my computer was messing up. But I would think the percentages should be similar across the country, if insurance and taxes are higher then I would expect rent to be higher. I know thats not completely true tho, by the numbers buying a cheaper house in a bad part of town you have lower taxes(not nesc insurance though) but you also take more of a risk being in a bad neighborhood.
thanks
Nick
Not all areas have uniform property tax rates, or uniform insurance rates. Hazard insurance rates are often regulated by the state insurance commissions. Property taxes are assessed by each county and their valuation methods are not uniform across the nation.
Similarly, rental rates depend upon local economic factors. An area with a depressed economy will have stagnant rents while a booming market area will see rents increase almost as fast as the median housing price.
If you just want a number, use 15% of your annual projected rent to estimate your property tax and hazard insurance costs. Realize that property taxes and hazard insurance premium rates do not change linearly with rental rates. For instance, if rents stay the same or decline in a soft market, your property taxes and insurance premium do not also decline. So if you just want a number, use 15%, but that is just a number until you get accurate estimates for those expenses.
It realyl depends on the mortgage agreement that you have, in my opinion. If your mortgage is fha or any type of hud property - you had better live in it for at least the length they tell you to.
One of my mortgages once said something to the effect of "Owner must live in the property for an unspecified amount of time" It needed some fix up, so I lived in it for a month, fixed it up and then rented it out.
Good Luck!
[addsig]
Here builders are putting in the contract that buyer must hold the property for a year if they sell profit goes to the builder. Was it considered afforable housing? If so I would say you need to hold it for a year. If it is a HOA I would say to check with them too