If you are like many Chicago residents, you probably dream of owning your own home. If you have a stable and steady source of income, you may feel like it is time to make that move. Unfortunately, for some people concerns over debt and property tax might make it seem like you cannot own or even renovate a property that you do own.
Before you make any big financial moves, you will want to think about your personal debts and the taxes that you will have to pay, explains Forbes.
Assess your debts
Before you undergo any new renovation project or seek to own your own home, it is important to assess your debts. The most important metric is the debt-to-income ratio. You do not want your debt to exceed 36% of your monthly income. You can bring down your ratio by paying off your credit cards or paying down your loans.
Budget for taxes accordingly
You need to think about your budget after you own a home. Homeownership is more expensive than rentals, in some cases. You do need to think about your homeowners insurance, your maintenance and of course, the property taxes. Many banks will want to see that you have money saved for your property taxes in advance.
Appeal your property taxes
As a homeowner, you do have the right to appeal to lower your property tax. While it is a complex process to file an appeal of a property tax assessment, it can lessen your burden! Find out more about property tax appeals on our web page.