Greetings from the Lone Star State! As most of you know, Texas’ (and especially Dallas-Fort Worth’s) sales price to rent ratios are very high. For example, a 1750 s.f. single family detached home with 3 bedrooms and 2 bathrooms can be acquired for $125,000 and then leased to a family for about $1200-$1300 per month. This equates to nearly a 1% ratio!
Yet, nearly every time I am asked to “run the numbers” for a client a major concern arises – taxes!
Yes, property taxes in Texas are rather high. Taxes on property pay for our schools, our roads and many of our emergency services. As we do not have a state income tax, our local governments must generate monies another way.
Even with this said though, property taxes have become a concern in recent years. Property owners and real estate economists believe the high tax burden is a major reason why property values have remained relatively flat.
Thankfully, property tax reform passed earlier this year. Within two years, property taxes will fall by nearly 20%!!!
Below you can read an excellent article explaining the recent legislation reform and how it will affect your acquisition in the Lone Star State.
What the property tax cut means for me?
Please pay special attention to the spreadsheet toward the middle of the article. It provides a solid example of how property values will increase while your tax liability will diminish.
We provide opportunities every day for clients to realize positive cash flow on today’s scenarios. With the reduction of monthly tax liabilities by nearly 20% in two years, clients could reap $50-100 in further positive cash flow.
I look forward to hearing from you soon.
Please contact me for more information and to discuss investment options for North Texas.
As always, if you have any questions, please register with the site here at NARREIA:
CLICK HERE TO REGISTER
And then give me a call or shoot me an email!
Onward and Upward,
Brian Casebolt
Licensed with the Texas Real Estate Commission
REALTOR®, REMAX® Associates
briancasebolt@yahoo.com
(817) 929-2949
NARREIA Advisor since 2005
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