Data from the provincial government shows that Saskatoon
property taxes are calculated with a mill rate of 5.03, which translates into a tax rate of 0.00503 per cent for every $1,000 of a property’s assessed value. This particular rate is applicable to both standard and multi-residential properties.
“The amount of property taxes that any given property is required to pay is dependent on the assessment value and the tax rates for that year,” says Les Smith, City Assessor for the City of Saskatoon
. “There are three taxation components for each property that are combined for the property tax total.”
These components include the education property tax, the municipal property tax and the library property tax.
Properties in Saskatoon are attractively priced, thus lightening the load on buyers looking to get in on the ground floor in this market. According to the latest data from the Saskatoon Region Board of Realtors, the average price in Saskatoon
is $328,100, the highest level recorded since June 2014.
CMHC stats indicate that Saskatoon’s vacancy rate is 2.7 per cent, which means that properties sell fast and do not remain on the market for very long.
Additionally, CMHC shows an average rent of $1,315 for apartment units with three or more bedrooms, making them a great buy for cash-flow-focused buyers.
Over the past few years, the Saskatoon housing market
has performed well, with average prices showing annual increases. Since 2013, the average price has grown by 5.73 per cent, and further increases are forecasted.
Saskatoon’s property tax rates have also climbed a bit, and further increases are expected. “The property tax rates typically increase each year between reassessments, but decrease when new assessment values are first implemented,” Smith says.
Property tax rate:
$1,315 (3-bedroom apartment)
2.7 per cent
Find out more about the Saskatoon market using CREW's free online investment hotspot tool
This article was originally published in the June 2014 issue of Canadian Real Estate Wealth magazine
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When investors descend upon Saskatchewan to build their portfolios, Regina and Saskatoon are to the forefront of their plans. But the latter’s property tax rates could turn out to be a real deciding factor for investors.