Property: When local taxes crippling note – Echoes

When buying a property, you do not necessarily think the influence of taxation on the amount of its budget to refunds, add weight taxes.

The lambda taxpayer knows that the administration in heavy hand. But what weight may have the property tax and the housing tax in the budget for the purchase of a property? This is the subject of the latest study published by the broker mortgages Meilleurtaux.com which analyzes the impact of local taxes on a property purchase in the 10 largest cities in France. Topping the worst offenders ranking, Marseilles appears in first place, followed by Montpellier and Toulouse. In these cities, a buyer will pay the equivalent of 3 additional monthly payments to pay applicable taxes. Paris comes bottom of the ranking thanks to the double effect of a significantly higher monthly payment than in other cities for the same reference surface and a more lenient local taxes.

What” tax included “monthly?

To measure the impact of taxation in the financing of real estate it is also possible to integrate the various taxes in the rate credit obtained by smoothing over a year, which provides a monthly “tax included”, which puts the numbers into perspective. So while the average rate on 20 years is around 2% (excluding insurance), the weight of local taxation in Marseille and Montpellier respectively passed the “borrowing rate” of 4.50% and 4.10 %. Toulouse, Nantes and Bordeaux are not left with rates that flirt with 4%. A situation that does not seem to be reversed. “ With falling prices induces a fall in the amount of transactions, the gain for localities will be less and less important, hence the need to maintain high taxes “, analyzes Hervé Hatt President of Meilleurtaux.com.

Methodology

The calculation is done for a good 70m2 (average price per city according seloger .com in May 2015) financed over 20 years at an average rate agreed in the given city (Meilleurtaux source in May 2015), with the amounts of loales taxes (property tax and residence tax) in force in 2014 for a couple with two children.