Calgary #1 Place To Invest in Alberta – REIN

I received my top ten cities report the other day, and guess what… Calgary is now the best place in Alberta for real estate investors.  This is good for a couple reasons:

1. The average prices and growth in the city will continue
2. This will be great for buyers in the next couple months as they are now purchasing into a potential steady market
3. Buyers over the past couple years who have seen a loss in their house may see some appreciation in their house value

What Don Campbell’s report shows is that after Calgary’s predictable correction of the last couple years we are at a point now where we have more affordable housing conditions, a stabilized economy and renewed optimism. This all bodes well for the next three plus years for Calgary to see above average growth in property values, in-migration and general happiness for Real Estate investors.

If you are in looking to make a real estate investment purchase, please let us know how we can help you out!

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2010 Property Tax Assessment is in The Mail…

As you may or may not be aware of, on January 4, 2010 your property tax assessment was mailed to you. If you haven’t received it yet, you will soon get it. I wanted to let you in on some of the options that you have if you feel that the value of your home is too high on your assessment. If you feel that your assessment is too low, you have two options, leave it where it is or ask them to raise the value and then you get to pay more property taxes. I’ll leave that one up to you.

Here are some interesting stats and findings that came from the 2010 Tax Assessment:

• On Jan. 04, 2010, The City of Calgary mailed approximately 439,000 property Assessment Notices to Calgary taxpayers, which is an increase of 8,000 from 2009.
• The 2010 median single residential assessment (excluding condominiums) is $374,000 compared to $427,500 in 2009. The 2010 median residential condominium assessment is $233,000 compared to $278,500 in 2009.
• The total value of the 2010 Property Assessment Roll is $218 billion, a decrease of $27 billion from last year.
• As a result of the 2010 Assessment, the typical assessment change between the 2009 and 2010 Property Assessment Rolls is -13% for residential properties and -15% for non-residential properties.
• This year, approximately 92% of residential properties’ revenue neutral taxes will stay within plus or minus 10% of last year’s taxes.
• 70%, or just over two-thirds, of residential properties will experience a revenue neutral tax decrease due to the 2010 assessment, while 30% or, just under one-third, will experience an increase in their taxes due to the 2010 assessment only.

We have had the question multiple times before on how the city calculates what the tax rate will be… Here it is…

Tax Rate Calculation

Each year City Council approves the amount of expenditure needed to support City services. To get the amount of revenues required from property taxes, The City takes the overall expenditure and subtracts all other sources of revenue like business taxes, license fees, user fees and provincial grants. The balance is the amount to be raised through municipal property taxes.

In order to calculate taxes, a tax rate is established. The tax rate reflects the amount of taxes to be paid for every $1 of assessed value.

Municipal Tax Rate =  Total revenue required by The City of Calgary from property tax / Total Assessment
Provincial Tax Rate =    Total revenue required by The Province of Alberta from property tax / Total Assessment

Tax Bill Calculation

Your property taxes are calculated by multiplying the assessed value of your property by the tax rates:

Property Tax bill =  (Assessment x Municipal Tax Rate) + (Assessment x Provincial Tax Rate*)

*The Provincial Tax Rate is set once The City receives the annual requisitions from the Government of Alberta (Alberta Learning) and the Calgary Catholic School District. The amounts of the requisition are not subject to review or approval by City Council. The City of Calgary bills and collects this tax amount for the Province of Alberta.

Your annual property tax bill covers the period of January 1 to December 31.

Now… what are your options if you feel that your tax assessment is too high.  Many people don’t look into this, however this can save you a good chunk of change each year if you are on top of it.  Here are the steps that you will want to take.

1. Check to see what the City has on your property by going to their Property Assessment Search
2. Once you know what the city has on your property, they have provided a page on their site that you can search out your neighborhood and download a pdf of all the most recent sales that have happened in your community that the city knows about.
   - For all Single Family Dwellings (not condo’s) you can Search Here
   - For all Condo’s you can Search Here

One last thing… Here is a brochure for you to download from The City of Calgary that they give out for more info on Property Tax Assessments.

2010 Property Tax Notice Brochure Download

I hope this gives you a good idea of what you can do about your assessment and gives you a great start on making sure that your are paying the proper amount of taxes.

All Information given here is from The City Of Calgary Website

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