Explanation
of Housing Tax
|
Total Tax per House
|
|
|
Total Tax for All Houses
|
| 15.00% |
$6,495.718 |
|
|
$630,084.6 |
| 25.00% |
$4,893.828 |
|
|
$474,701.3 |
|
Year
|
|
1 |
2 |
+....+ |
14 |
15 |
16 |
+....+ |
30 |
|
Appraised Value
|
|
$12000 |
$9000 |
...
|
$4863.24 |
$12000 |
$9000 |
...
|
$4389.03 |
|
Discounted Taxes
|
15% |
$1074.78 |
$614.31 |
...
|
$103.9626 |
$229.76 |
$154.34 |
...
|
$16 |
| |
20% |
$663.06 |
$540.67 |
...
|
$57.29 |
$121.34 |
$78.12 |
...
|
$4 |
-
The value of each house is estimated
at $40 000.
-
The appraised value of each house is
30% of it's price.
-
We assumed that property tax would be
10% of the Appraised Value.
-
We also assumed an inflation rate of
3%.
-
Unfortunately, houses do not remain
the same price over time. We assumed that after the first year, the
price of the house would drop 25%. Then each year afterwards the
price would depreciate at a rate of 5% .
-
During the 15th year of the housing
project, we are going to perform a major renovation. These repairs
will reestablish the value of the house to its former value at $40 000.
Depreciation will continue after this year as stated before.