How to Organize Property Tax Expenses

Video Transcript

"I am going to present a topic on budgeting. Again with the help of Expert village hopefully we'll be able to help people and assist people in terms of developing a budget. In this clip we are going to talk about another item that impacts the budget and this will be property taxes and fees and other associated items. This is something that alot of people don't realise but it really does impact the budget. Normally if you're a homeowner or if you own real estate, there some fees associated with having that asset. If you live in a condo, alot of times you'll have what is called a homeowner fee. For example my mum who lives in Texas has a condo and she pays a monthly fee to the Homeowners association. And that fee can be pretty expensive. Her's is actually over $100 a month and that takes care of the condo property. Take a look at your situation and see if there is a certain fee that is being assessed that you are paying on a monthly basis. The next item that can really impact under the property taxes and fees are basically your real estate taxes. Most times, in my case I have mine paid with my mortgage payment but sometimes, alot of people still have it as a separate item. So again your real estate taxes are usually due twice a year. You need to include that in your budget, determine what you are paying over a year and then divide that by twelve to get a monthly amount that you can include in your budget. So again what we are trying to do is break things down on a monthly basis to look at your cash flow and how it impacts it. The other item would be miscellaneous fees and assessments. Those are things that you might have like they are building a new sewer on the street so you're being assessed $25 per month fee.Or there could be a fee because you are in a development and they assess a fee because of the new pool that they are putting in for the community. So look at all those little things under property taxes and fees to determine what that is on a yearly basis and divide that by twelve and determine how that impacts your budget. So that is another item that you need to include in your budget because it does have an impact."