Sunday, 30 November 2014

My apartment's Annual Value dropped

Opened my mail this morning, and read the letter which informs me on how much property tax I have to pay for the year 2015 for my apartment. Since I rent out my apartment, I have to pay a higher tax rate (10%) as compared to if I'm staying in it myself (4%).

The letter stated the Annual Value (AV) of my apartment for the year 2015. I kept my copy of the 2014 letter and comparing the two years, the AV of my apartment dropped by 12.5%. On the surface, this means that I now pay less tax for my property. However, the reduction in the AV would mean that my property is perhaps "less valuable" now or the general property market is going on a downward trend. Both are making me worried -- I may not be able to find a tenant easily if the current one decides to leave, and/or I may have to reduce my rent.

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