For millennia, property taxes have been used to fund government functions. Local and community services, schools, infrastructure, and other projects can all fall under this umbrella of government functions. Property taxes vary by location, but they are generally calculated based on the property’s value. Property taxes are paid by all homeowners, so it’s critical for prospective and new homeowners to understand what they are, how they’re calculated, and other details.

What Is Property Tax and How Does It Work?

• Property tax:

A property tax is a tax levied on a piece of real estate that is owned by an individual or a business. Property taxes are an “ad-valorem” tax, meaning they are calculated based on the assessed value of real estate and some tangible personal property, such as boats and cars.

In the United States, state and local governments levy these taxes, which are used to fund school districts, community amenities, and other local expenses and projects. Property taxes can differ significantly between states and even neighboring municipalities.

• How does it work?

Property taxes are calculated according to state and local laws. Property taxes, on the other hand, are calculated based on the property’s value and the city’s tax rate. Let’s take a closer look at these two factors.

The physical home, its land, and other personal property such as cars are all taken into account when determining the property’s value. An assessor, who works with a local taxing authority and keeps track of local property values, determines this value. Because a home’s property value is closely monitored, changes in that value can result in an increase or decrease in property taxes.

A local taxing authority determines a home’s tax rate, which can vary depending on the home’s location and property type.

Property Tax Payment

Most property tax payments are included in the homeowner’s monthly mortgage payment. This is due to the fact that mortgage servicers frequently collect tax payments in monthly installments as part of your mortgage payment and deposit them in an escrow account. When the payment is due, this account is tapped to make the payment.

Homeowners can also make annual or semi-annual payments directly to their tax authority when they become due. Mortgage lenders may impose their own restrictions on this option in order to be reasonably certain that your home will not be taken in a tax foreclosure.

Property tax value (assessed value) is too high?

Property taxes are the most difficult aspect of owning a home. Not only can they be costly, but they can also change from year to year. And they tend to rise. Property taxes not only tend to rise over time, but they also tend to rise even when home values fall.

Are you having trouble keeping up with your property taxes? Here are a few crucial steps to take.

1. Check to see if your home has been over-assessed.

Every year, you should receive an official letter informing you of your home’s assessed value. If you believe your property’s value is less than the stated value, begin gathering evidence to back up your claim.

2. Get a professional assessment 

You could hire a state-certified appraiser to determine the current value of your property. At Val’s property management we offer a service to our clients of appealing property taxes on their behalf and we have a very high success rate. We have experience with property assessments and will assist you in filing appeals!

After assembling evidence, you can make a case for why your home’s assessed value is excessive, potentially lowering your property taxes. However, if you’re thinking about selling your home soon, think twice. A lower assessed value may influence how much a buyer is willing to pay for a home.

It’s impossible to avoid the fact that owning and renting out real estate properties takes time. If you own several properties, it can be especially draining. Also, it would be important to know if the state you live in requires a property manager to be a licensed realtor or real estate broker. Some states have limits on the number of units you can own and manage yourself before requiring a licensed agent to manage for you. Often, property management can be time-consuming, frustrating, unique, and take a lot of time, meaning it’s time to hire a trustable property management company, is the answer.

What Do Property Management Companies Actually Do?

Property management companies serve as a link between you and your current or potential tenants. Typically, they collect rent, maintain the property, and find and vet new tenants. They provide rental property owners with two major benefits:

· They help you save a great deal of time (and, in many cases, money)

· They have a lot of property and tenant management experience.

Property managers deal with a lot of moving parts when it comes to properties and tenants. Juggling marketing, showings, applications, lease signings, background checks, rent collection, evictions, tenant requests/complaints, etc. They’re also in charge of dealing with emergencies, maintenance, coordinating move-ins and move-outs, and evictions.

When Should You Hire a Property Management Company?

1. You don’t want to be a landlord.

There’s no getting around it: being a landlord is a lot of work. If you don’t enjoy serving your tenants and dealing with the responsibilities that come with being a landlord, it’s time to hire someone to help you manage and protect your investment.

2. You don’t have enough time.

We understand that time is valuable. Furthermore, as a professional, you are likely to have a number of responsibilities in addition to your real estate investments. It doesn’t matter if it’s your job, family, or hobbies that demand your time.

3. You don’t live close to any of your properties.

People invest in real estate is very different ways now than they did a decade ago. With the introduction of data-driven real estate marketplaces, you can now buy turnkey single-family rentals all over the country from the convenience of your own home. This allows you to own investment properties in markets other than your own, giving you more options for investment. It’s best to hire a property management company if you want to diversify your real estate portfolio across different markets. Not to mention that if a pipe bursts or you need someone to conduct tenant interviews, your property manager will take care of everything.

VPM & Pyramid Realty is a one-stop shop for both homeowners and investors that provides services for both investors and homeowners. As an investor, Val’s Property Management facilitates both the buying and selling of the investments, placing tenants, handling tenant issues, evictions, repairs, maintenance, rehabs and more.

Given the amount of emotional exhaustion that comes with having to move to a new area, the decision to relocate can be stressful and time consuming.; However, quite frequently people find that they still need to make that decision quite frequently. Having a little help on how to plan your move, and what to expect moving forward can go a long way in lifting the burden of relocating off your shoulders.

That is why, in this article, we will attempt to address common questions and considerations for those seeking additional relocation help or advice!

Why do people move?

In 2021, there was an upward  trend of Americans relocating in comparison to the previous year. statistics show that more than 20% more Americans plan to relocate in 2021 than in 2020, primarily to reduce their cost of living or be closer to family. Other reasons for relocations will, of course, differ depending on the circumstances; however, they usually include the following:

• Getting a new job: Finding work can be a compelling reason to relocate, especially when commuting distances are excessively long.
• Costs: Running a home is a costly endeavor; as a result, people are propelled to relocate to an area where costs are more manageable and affordable.
• Extra space: Some people simply move because they need more space, especially if they intend to start a family and will need to move to a larger house.

Common Concerns: What are People Concerned About when They Relocate?

Residential moving is widely regarded as a very stressful event, made even more so by the possibility of problems arising during the moving process. So what are the most likely issues that will arise while moving  that will put movers under a lot of pressure?

1. Getting scammed: What could possibly be worse than moving scams? S such scams include charging customers prior to the delivery, neglecting to inspect the household before moving, not taking responsibility for the damaged equipments or charging excessive fees for packing materials and services 
2. Missing/Damaged items: Another common issue is the level of concern for the equipment; unfortunate events such as damaging or missing items, particularly those with irreplaceable, sentimental value, can be expensive.  
3. Not enough time: In the midst of your move, you may fall short of keeping track of the necessary steps you must take, which will almost certainly result in problems or delays.
4. Finding the right house: One of the best things you can start doing is to research the new area to which you want to relocate. If you want to make this process go more smoothly, look for a reliable real estate agent who can work with you, preferably one who has experience with relocation and is familiar with the area you’re moving to. If you live in the South Bend/Mishawaka area, VPN is a trustworthy agent you should contact.

Considerations: Have a Checklist Ready!

So, how can one be proactive in anticipating and dealing with these potential issues?

For starters take the time to research the services offered by potential moving companies and select the most dependable one with positive reviews. Another golden rule is to avoid paying companies before they have moved you; the protocol precludes payment before delivery. Make sure you can trust the company with your belongings, label your boxes so that you can easily identify where they are stored and in the event of losing an item you can proceed to file a complaint or a claim with your insurance company to get compensated. 

As hectic as your residential move may be, you can make it a success if you plan ahead of time. Make a list of all the steps you’ll need to take and proceed as needed.

Most people debate if they should rent a home or buy a home.  Below, we will discuss the supporting claims for each decision, as well as important factors to consider before buying or renting a home.

Advantages of Renting a home:

• Renting a home is a far more flexible alternative to owning a house; obviously, by being a tenant, you can choose to live in an area that you may just want to try out versus long term ownership of buying a house. However, the trends in real estate show that selling a home can happen almost as quickly as giving a 30 day notice with the benefit of having equity built up.
• Being a tenant also makes the process of moving out much easier; as a tenant, you would not have to worry about finding someone to take over the property or looking for a buyer, as that is the landlord’s responsibility.
• Renting may provide you with the financial advantage of being able to save more money or potentially invest that money in the stock market, for example.
• Another significant advantage of renting is the ability to avoid paying for and figuring out repairs. Repairs are the responsibility of the landlord.

Things to look out for! 

• Renting does not generate wealth or provide a return on investment because the rented property does not legally belong to you. So, if the property has gone up in value, if you were selling the home, you would be able to benefit from the increase in price, but as a tenant the equity and value of the home belong to the owner.
• Another factor to consider while making the choice to rent is that when a lease expires, there is no guarantee that it will be renewed.
• Being a tenant would also restrict your freedom to do home renovations or updates without the homeowner’s consent.

Advantages of Buying a home:

• Buying a home is widely regarded as the most rewarding financial investment ever made; by making the decision to buy, you will be in possession of a property that you own and control, as well as realizing a capital gain.
• Another remarkable advantage of purchasing a home is that the home value will increase over time, allowing you to profit from the property if you ever decide to sell it.

Things to look out for! 

• Purchasing a home entails a number of expenses, including rates, taxes, insurance, and maintenance, which you will be responsible for as a homeowner.
• Another risky aspect of buying is the possibility that you will not be able to resell it for a profit. If the market goes down or neighborhood changes or if the city decides to build a homeless shelter down the street. All of these factors, which are outside of your control, will significantly affect your home value.

Finally, deciding whether to become a homeowner or a tenant is based on your evaluation of all the benefits and drawbacks of each option, always keeping your financial situation in mind.

People are increasingly valuing income property as a viable source of income, in fact according to a recent study by Bankrate real estate is the preferred long-term investment for the majority of Americans.

If you are influenced by this trend and want to prepare to enter the real estate market, you should consider following these top five rental property investment tips. 

1. Arrange your finances 

There are numerous options for financing your investment. You might consider getting mortgage loans while you’re planning. Each loan option has its own set of advantages, some of which may or may not be appropriate for your financial situation and goals. However, there are a few things you should think about before applying for that mortgage loan. To begin with, as a beginner investor, it is best not to carry debt in your investment portfolio, so if you have a student loan or unpaid medical bills, make sure you have cleared that out before you begin investing. you’ll also need to consider that Buying investment properties will necessitate a larger down payment (at least 20%).

2. Is Being a Landlord Right for You?

Hiring a real estate agent is critical for a beginner in the real estate market. Experienced real estate agents provide you with market knowledge that you may lack at first. Many of the stressful aspects of buying an investment property, such as paperwork and negotiations, will be handled by your agent. 

If you’re thinking about investing in the South Bend area  Val’s Property Management has been serving that area for many years. Their experience and service have made them one of the top management companies in South Bend for both landlords and renters. Consider giving  them a call or view their current listings! 

3. Locate the Ideal Location for Your Rental Property

When looking for your first rental property, you want to make sure you don’t end up in the wrong neighborhood. A city or location with a growing population and a revitalization plan in place could be a good place to invest. A profitable rental property will be located in a neighborhood with low property taxes, a good school district, and plenty of amenities such as parks, malls, restaurants, and movie theaters. Furthermore, a low-crime neighborhood with public transportation and a growing job market may have a larger pool of potential renters.

4. Home cost

Market experts would advise you to choose the least expensive house possible, as the higher the cost of the home, the higher your ongoing expenses will be. Some real estate experts advise starting with a $150,000 home in a desirable neighborhood.

5. Calculate Your Profit

How profitable will your investment be? As an investor, you’ll think about how much money you’ll get back for every dollar you put in. Experts estimate a 6% return on investment for your first year as a landlord; this percentage is considered healthy as long as it rises over time.

Are you interested in purchasing a foreclosed home – a diamond in the rough at a price you can afford? You probably guessed right! It’s crucial to know what you’re looking for and how to shop for a foreclosed home. We’ll walk you through it step by step; we will take a closer look at what it means when a home forecloses, and how to get through the process of buying a foreclosure.

What is a foreclosure property?

A foreclosure is a home that has been seized and listed for sale by the bank that provided the original owner with a loan. When you see a home listed as foreclosed, it means the bank owns it. Every mortgage contract entails a lien on your home. If you fail to make your mortgage payments, your bank can seize control of your property through a lien. Foreclosures are usually the result of a financial disaster for the current homeowner that left them unable to keep paying for their mortgage.

Hence, you can already notice that buying a foreclosed home is a little different from buying a house owned by a homeowner.

Now let’s discover step by step the process of buying a foreclosure. 

1. Budgeting:

When purchasing a foreclosed property, it is critical to plan ahead of time. Although you can buy a foreclosure for less than market value, you must first make sure that you can afford it.  Always keep in mind that if a property is out of your budget, no matter how good the deal might seem, you will end up struggling to make the monthly mortgage payments. 

2. Do Your Research: 

After you’ve determined your budget, the next step is to look for foreclosed homes for sale.  Although a real estate agent will most likely be able to assist you in your search for foreclosures, you may want to conduct your own research as well. Some of the places you can look include:

• Real estate agents: Since they are the first to know when foreclosed homes hit the listing services, you can look for an agent that specializes in foreclosures.
• Newspapers: You may be able to find foreclosed properties advertised in newspapers. Yet, competition for these properties will likely be high. 
• Mortgage lenders: You could choose to work directly with the lender. Still, competition for bank foreclosures can be very intense. 

3. Hire A Real Estate Agent:

Most banks turn over foreclosed properties to a real estate-owned (REO) agent, who collaborates with standard real estate agents to find a buyer. Nevertheless, not every real estate agent has worked with REO agents. An experienced foreclosure agent can assist you in searching for foreclosures, navigating your area’s REO purchasing process, negotiating your price, ordering an inspection, and placing an offer.

4. Home Inspection

When you buy a foreclosure, you will be entirely responsible for the repairs. Therefore, a thorough home inspection is essential. If the inspection reveals any issues that you can’t afford to fix, it is advisable to walk away. 

An inspection is a more in-depth look at your potential home. An expert will walk through the home and write down everything that needs to be replaced or repaired. Because foreclosures usually have more damage than homes for sale by the owner, it is a must to schedule an inspection before buying a foreclosed home.

If you cannot order a proper inspection, you should only consider buying these types of foreclosed properties if you’re advanced at-home repair.

5. Purchase Your New Home: 

Read your inspection results and decide if the home in question is a great fit for you and whether you’re okay with buying a home as-is. Contact your mortgage lender to finalize your loan if you have the money or skills to make any needed renovations. Your real estate agent will assist you to submit your offer and prepare you for closing.