Property taxes still sky-high in Chicago
Here’s some news that’s probably not shocking if you own a condominium or single-family home in Chicago: Property taxes here are high.
According to this recent story by the Chicago Tribune, Illinois homeowners pay the second-highest property taxes in the United States. We’re behind only New Jersey, according to information from Attom Data Solutions.
What’s this mean? The big factor is that high property taxes make owning a home more of a financial challenge. Buying a condo for $300,000 might not strain your budget too much. But if that condo comes with property taxes of $7,000 a year, that’s a bit more than $580 in additional homeownership costs that you have to account for each month.
These higher property taxes, then, can strain your homebuying budget.
This is why it’s so important to consider all of the costs of owning a home before you buy one. You might find a Chicago home that appears to have a mortgage payment that fits comfortably in your budget. Make sure, though, that you check into the property taxes. A high property tax bill can turn an affordable home into a financial burden.
It doesn’t look like property taxes will be falling anytime soon in Chicago or throughout Illinois. These taxes aren’t all bad, of course. Taxes help pay for the services we all rely on, everything from garbage pick-up to street plowing to public schools and libraries. Some of the Chicago communities with the highest property taxes are also some of the most attractive to homebuyers, largely because they come with so many perks and amenities.
The key is to not be surprised by high property taxes, and to account for them when you are setting your homebuying budget. Talk to your REALTOR® about the average property taxes in the Chicago neighborhoods that interest you. And then make an informed financial decision when you’re ready to start hunting for your new home.