Every four years MPAC (Municipal Property Assessment Corp.) re-sets the value of your home based on current market value for similar properties in your immediate area. This assessed value becomes the base for your property taxes. Fortunately, the increase is phased in over four years. The last property assessment was done in 2012. At that time the average market value for a 4-bedroom home in Rockwood was about $692,000. The property taxes were adjusted on an annual basis for the past 3 years, to reflect the value in 2012, and next year the taxes will reflect the full values of the 2012 assessment. In 2016 the property values will be assessed again to reflect current values. Unless there is a significant decline
in the market going into next year, that average 4-bedroom house will be valued closer to $900,000, an increase of 30% since the last assessment. This would mean that you could expect your assessed value to increase about 7.5% per year for the next four years (2016-2020). Unfortunately, MPAC does not know the market value of your home, i.e., what is it really worth if you plan to sell. Is it worth more or less than the selling price of the recent sales of similar homes? Are you upgraded to the same extent as the house down the street, or did it have an extra bath, or a fully finished basement with a fireplace. Or is your home basically in original condition? Do you need to spend money to get the same value as your neighbour? Here is an example. This year two homes in this neighbourhood with almost the same assessed values sold on the same street. One sold for almost $100k more than the other. The higher priced home had a new kitchen and baths; otherwise, it was almost identical to the lower priced home in terms of lot size, square footage and other features. The moral of this story is that, while the assessed value is used as a comparable to set your property taxes, it has nothing to do with the market value of your home. RW
in the market going into next year, that average 4-bedroom house will be valued closer to $900,000, an increase of 30% since the last assessment. This would mean that you could expect your assessed value to increase about 7.5% per year for the next four years (2016-2020). Unfortunately, MPAC does not know the market value of your home, i.e., what is it really worth if you plan to sell. Is it worth more or less than the selling price of the recent sales of similar homes? Are you upgraded to the same extent as the house down the street, or did it have an extra bath, or a fully finished basement with a fireplace. Or is your home basically in original condition? Do you need to spend money to get the same value as your neighbour? Here is an example. This year two homes in this neighbourhood with almost the same assessed values sold on the same street. One sold for almost $100k more than the other. The higher priced home had a new kitchen and baths; otherwise, it was almost identical to the lower priced home in terms of lot size, square footage and other features. The moral of this story is that, while the assessed value is used as a comparable to set your property taxes, it has nothing to do with the market value of your home. RW
