Do you know about all the costs associated with real estate investment properties? Most real estate investors are aware of mortgage payments, but it’s important to remember that you’ll have to pay property taxes on your investment as well.
Property taxes vary based on the location of the property. This happens because each city has different rules regarding property taxes. For example, the local property tax in Memphis will be different from the property tax in Tennesee cities like Nashville or Knoxville.
Whether you’re trying to calculate your investment property costs or trying to figure out which cities have low property taxes, you’re going to want to know about property taxes in your area. In the article below, you’ll find some information about Memphis property taxes. Read on to ensure you know exactly how much you’ll have to pay for your investment property.
Property Taxes Are Based on the Value of the Property
The more your property is worth, the more you’ll have to pay for property taxes. In Memphis, property owners owe $ $2.713049 per $100 of property value. If your property is worth $300,000, you’ll owe $8,139.147 each year.
The property taxes Memphis collects generally go to roads, bridges, and public transportation. Memphis has considered raising property taxes as recently as this year, but the property tax rate remains $2.71 per $100 of assessed value as of September 2021.
Are you wondering how Memphis property taxes compare to other major US cities? In general, cities in Tennesee have very low property taxes. Tennessee property taxes are about half the national average.
There Are Different Ways to Pay Memphis Property Taxes
The way you pay property taxes often depends on how you’ve set up your mortgage payments. When you’re researching how to invest in property, be sure to look into how different mortgage options have you pay property taxes.
Some people choose to pay property taxes each month as part of their mortgage payment. If you go this route, you’ll avoid large tax bills at the end of the year. Many people like to do this to spread out tax payments and avoid having to calculate taxes at the end of the year.
Some people decide to pay property taxes in one lump sum each year. If you pay taxes this way, you’ll have to send your property tax payment directly to the local tax office in Memphis.
Now You Know How to Pay Local Property Taxes
While investing in real estate is often a great way to grow your money, it does come with some costs. Calculating these costs and ensuring you have enough funds to cover them is one of the most important aspects of smart real estate investing.
Now that you know how to calculate local property taxes, you can account for these costs when deciding on an investment. If you’re ready to invest in real estate in Memphis, get in touch with the real estate experts at Home River Group.