We've talked before about how property taxes are determined in Niagara. Property taxes are based on the assessed value of the home that you are purchasing. You may be wondering how that value is determined. The value of homes for sale in Niagara is determined by MPAC.
MPAC is the Municipal Property Assessment Corporation, and is the largest assessment jurisdiction in North America, assessing more than five million properties in Ontario. MPAC acts on properties in Ontario by following the Assessment Act and regulations set by the Government of Ontario when assessing properties.
Current Value Assessment Approach
Niagara property values are assessed through the Current Value Assessment approach. When assessing current residential properties over 200 factors are considered, however 5 key features are able to account for about 85% of the value which are:
- lot dimension
- living area
- age of property
- quality of construction.
The most important feature is location. Within your location of your neighbourhood, MPAC will take into consideration traffic patterns, the house location within the residential street, proximity to a golf course or a hydro corridor, railway or green space that will increase or decrease the value of your property. Also looking into the site features such as type of access, topography, lot services such as hydro, water and sanitary/ septic services is able to increase or decrease the value of the property as well.
If you live on a waterfront property the body of water you live on the amount of water frontage you are exposed to can increase or decrease your value property too. Finally when comparing your property value towards other in your neighbourhood make sure you look at the time stamp to when the property was sold that can make a difference with the value of your property.
Why is this important to know?
Understanding how Niagara property values are determined can help you during the process of buying a home. Being cognizant of what you will pay in Niagara property tax can help you determine whether purchasing the homes you look at will actually fit within your budget.
For more information on understanding real estate terms when buying a home or selling your Niagara home, click below to download our free Real Estate Glossary.