Over
the last few days my wife and I have received a few letters in the mail
regarding our house... another couple of firsts… which were equally good and
bad. The first letter that we received was something that we knew was going to
show up eventually and we weren’t looking forward to it… our property tax bill.
It is almost like being lulled into a false sense of relief when looking at
this total with the knowledge of what our total annual taxes are on the
property. This was obviously the first and much smaller bill… the school tax
bill will arrive this summer.
Having
paid our taxes up front at settlement… actually, our mortgage includes the
funds being held in escrow that we need for our annual taxes… I scanned and
sent the invoice off to the bank. While it means a pretty significant increase
in your monthly mortgage payment I do recommend having the bank hold these tax
related funds in escrow as the last thing that I wanted to pay this past month was
a rather substantial property tax bill. It was reassuring to see this invoice
taken care of without a big hit to our account and without any impact on the
amount we still owe the bank.
Another
piece of mail that I scanned and sent to the bank was our official approval for
our Homestead Exclusion. Essentially, since we own this property which serves
as our primary home, we are entitled to a slight reduction in our school taxes.
And when I say slight I mean very, very small. But, at the end of the year,
whatever that amount may be, it is still money that stays in our account. Given
the size of the invoice that we are bound to receive, about 2-3 times more than
the initial bill from the township, it will be nice to be able to hold on to a
few extra dollars.
I
guess you could say that these are a few of the unpleasant first time
experiences as new homeowners but, in the end, we wouldn’t change a thing. There
are some ‘negative’ things about ownership and the responsibilities that we now
have as partners in this endeavor but, in the end, they are minor in comparison
to the benefits and security that we now have in our home. We know where we are
going to be for the long term. We know where our son is going to grow up. We
own our home and we have land that we are free to enjoy (after taxes).
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