Mortgage Credit: Think Property Tax for 2022! – magnolia

When buying a home, few people think of property tax among the purchase costs. Wrong, because it can represent up to two monthly loan payments. The bill is salty in 2022, with a significant increase of more than 10% of this local tax in certain cities. Broker Meilleurtaux assessed the weight of the property tax in the borrowing family’s annual budget.

Property tax: on average €105 per month

Advice for future buyers: Don’t forget to include a file property tax in your acquisition budget. Everyone focus on real estate pricesto her your location or condominium fees and take a back seat or even completely hide the property tax, that Local taxes collected each year by municipalities and local authorities.

to Apartment 70 m 2 funded by Mortgage Over 20 years nominal rate of 1.85% (excluding Home loan insurance cost and cost of warranties), broker Meilleurtaux evaluated The amount of property tax in the 20 largest cities in France. it costs On average 105 euros per monthwhich is equivalent toAdditional monthly loan payment per year Added to other borrowing fees. That’s an extra €4 compared to 2021 and €13 more than it was in 2018. And you might say a few more euros! Sure, but with Mortgage rates increase in 2022These are expenses that indirectly burden the Mortgage costand in a highly variable manner by region.

Property tax: up to 2.1 loan installments per month per year

Among the 20 largest cities in France Paris Where property tax is “the lightest”. By €770, the monthly loan payment is increased by 64 euros per month to be present 0.2 monthly payment for a year. At the other end of the spectrum, Neem : The purchase of an apartment of 70 square meters in the county of Gard County requires the payment of a property tax of 1,551 euros, which increases the monthly payment by 129 euros per monthwhich is equivalent to 2.1 Additional monthly payments to be paid annually. In Saint-Étienne, where real estate prices are much lower, the tax is also 2.1 months of mortgage credit.

here it is Weight property tax in the number of months of the mortgage It is repaid in the 20 largest municipalities in France:

The property tax Not included in the account debt ratiowhich should not exceed 35% of net income From the borrower, but it already constitute expense to bear Who comes to enlarge others housing fee (Loan fee, co-ownership fee, housing insurance), and come to be reduced as much as the rest to live from the stove. Among the rising interest rates, the Corrosion rate 2022Real estate prices that aren’t weakening and this property tax hike in 2022 is not the time to celebrate future borrowers who see Real estate purchasing power nibbled a little more.

Property Tax 2022: Expect a Sharp Increase

The property tax Everyone cares Owners or beneficiaries of built real estate It is generally paid in October to taxpayers who have not opted for the monthly payment of this tax. Calculated annually and based on housing characteristics And the place where is locatedThis tax is accompanied by three other taxes:

• TEOM (household waste removal tax),
• Tax on Special Equipment (TSE) that helps finance regional infrastructure,
• TASA (Annual Special Additional Tax) which relates to public transportation financing.

With the violent return ofInflation in 2022 and the Cancellation of all housing tax on the main residence From January 2023, some municipalities will have significant leverage over the property tax next October.

The state reassesses the areal values ​​of 3.4% For this year, a 33-year record, after a hypothetical recession in 2021 (0.2%). This flat rate revision stems from the evolution of the Harmonized Consumer Price Index (HICP), which moves with inflation (+5.8% over one year at the end of June 2022). This coefficient of 3.4% is applied to Residential rental valuewhich is then divided by two and then multiplied by Overall rate voted by local authorities (city rate, inter-municipal rate and department rate).

Between 2010 and 2020, the property tax made jump nearly 28%And from one municipality to another, the differences in prices are significant. In 2021, the overall property tax rate was set at 13.5% in Paris and 53.92% in Grenoble.

In spite of Phase out the council taxthe majority of cities chose not to pass loss of revenue on taxpayers, but inflationary drift You may decide otherwise. The property tax 2022 It will therefore rise by 12.6% in Strasbourg, 14% in Marseille and 15% in Tours, among the municipalities where the increase will exceed 10%.