Good News and Bad News
I have good news and bad news. First, the good news is your real estate investment is highly likely to be performing very well, especially if you are in the Central Texas and Austin, Texas areas. A house that sold for $445,000 in July of 2020 in SW Austin would easily sell for $600,000 today.
The bad news? Your property taxes are going up. But it’s not all bad…your designated homestead property tax appraisal can only increase by 10% year over year. The key is you have to have filed for a homestead exemption. Check your property tax records to make sure you have filed for your homestead exemption and any other exemptions you might qualify for, such as the over 65 and disability exemptions. In general, the deadline to file for your exemption is April 30. You need to have owned the house as of January 1.
The Travis County Tax Appraisal Office gives an excellent explanation of property tax exemptions. Other counties in Texas follow the same rules:
If you happen to own investment property, or even a second home, you need to be aware that the property tax appraisal on those properties is not limited by how much it can go up every year. You may find yourself in shock when you see your tax bills on these properties. But there is a solution…sell those properties now. Austin and the Central Texas Metro areas have an extreme shortage of homes for sale and a huge number of buyers. We are often able to secure a sale for well over the list price, with many selling for 20% and 25% over list price…and that is for homes listed according to the most recent sales comparables. The result is you walk away with a large return on your investment. Couple that with my equity protection program where you pay less closing costs, and your investment return is even higher. Call me today to find out how much your property might sell for in today’s market.
For more information on property taxes in Texas, visit the Comptroller’s web page. https://comptroller.texas.gov/taxes/property-tax/basics.php
Call me now to find out if now is the time to sell your investment property.