When it comes to investing in real estate in the United States, it is important to consider several factors, one of them being the cadastral value of the property. What is it, how is it calculated and why is it so important to understand in relation to real estate investments? Here we explain it to you.
In the scenario of the economy in the United States, real estate has proven to be an attractive option for those interested in diversifying their investment portfolios. In this context, the appraisal of a property acquires significant relevance.
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What is cadastral value and why is it important?
The cadastral value of a property is the rate that the tax administration of each county assigns to a property. This influences the property taxes that owners must pay each year. It is also a crucial factor when assessing the profitability potential and the financial burden associated with the investment.
Step by step to get this value
Calculating this value of a property in Florida can be a straightforward process if the proper steps are followed.
- Identify the county. Florida is made up of 67 counties (SSG, 2023) and each has its own tax administration. These entities are responsible for determining the value of the properties. It is important to identify the county in which the property you want to evaluate is located.
- Then, access the website of the tax administration. Each county in Florida has its own website, on which this information can be accessed. Search for the county in question.
- Finally, review the information provided. Once you have found the property, you will be able to access the content related to its cadastral value. This usually includes the current value, the history of previous values. There may also be information on tax exemptions, i.e. applicable reductions in the payment of taxes (TurboTax, 2022).
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Aspects that influence the cadastral value
Several aspects are considered when determining the appraisal of a property in Florida. All details should be determined through a home inspection. The following aspects are taken into account.
- The location of the property is a crucial factor. Properties located in highly sought-after areas or close to services and amenities typically have a higher cadastral value . For example, houses in Florida.
- The size of the property and its characteristics also influence. The built area, the number of bedrooms and bathrooms, and additional amenities can increase its value.
- Benchmarking. The tax administration also considers recent sales of similar properties in the same area to determine value. These benchmarks help establish a benchmark for valuation.
- If significant improvements have been made to the property, such as renovations or extensions, this can also affect its value.
It is important to note that this value may vary over time and market circumstances. In addition, there are other factors that can influence the real value of a property, such as supply and demand in the area.
If you are interested in investing in housing projects in Miami, we recommend doing more research and consulting the real estate experts at PFS Realty for personalized advice.
References
SSG. (2023). How is the State of Florida and its counties divided into the USA? SSG. https://santanasalesgroup.com/como-se-divide-el-estado-de-florida-sus-condados-en-usa/
TurboTax. (2022). What are tax exemptions? TurboTax. https://turbotax.intuit.com/tax-tips/en-espanol/que-son-las-exenciones-fiscales/L4mJfbweh