Burlington is experiencing a growing housing market to meet the needs of its growing population. According to Stats Canada’s 2021 Census, the City of Burlington’s population is expected to reach 265,000 residents by 2051, an increase of approximately 42 percent. To accommodate this growth, the City has committed to creating 29,000 new housing units by 2031. It will accelerate the process by launching two pilot projects with assistive AI to streamline the approval process and meet its housing goals.
With the Bank of Canada’s commitment to lower interest rates and the expected decline in mortgage payments, options are expanding for those looking to buy or sell in this sought-after Toronto suburb. Helping Burlington residents understand their property valuations will help both current and future homeowners make informed decisions when buying or selling a home.
The value is important
According to data released earlier this year by MPAC (Municipal Property Assessment Corporation), by 2023, nearly 26 percent of properties in Burlington were valued between $750,000 and $1,000,000, and just over 37 percent were valued between $1,000,000 and $1,500,000.
MPAC’s appraisal data provides insight into homeowners’ properties and how they compare to others. AboutMyProperty™, a free online tool, is available to any property owner in Ontario. Here, homeowners can access detailed property information, learn how their property was appraised, and compare their property value to those in their neighbourhood. If homeowners disagree with the assessed value of their property, they can submit a request for reappraisal before the deadline, which can be found in AboutMyProperty™.
Understanding value also helps homeowners and first-time buyers anticipate and budget for tax obligations. Property taxes are calculated based on the assessed property value, with a tax rate based on the funds municipalities deem necessary to build and operate thriving communities.
In order to make informed buying and selling decisions, it is important to know the estimated value of your home.
How to determine the value of a residential property
More than 200 factors are considered when evaluating a property. The five most important elements that homeowners and potential buyers should know are:
- Location – the neighborhood a home is located in significantly affects its market value. The desirability of the area often plays a crucial role in determining how much a buyer is willing to pay.
- Lot Size: The lot size of a property is calculated by multiplying the frontage length by the depth.
- Total square footage of living space – the outside of the home is measured to determine the total square footage of the building. This measurement does not include areas such as basements, patios, porches or garages.
- Age – The property value is adjusted to account for renovations or additions based on the actual condition of the home, not the original year it was built.
- Construction quality – the type of building materials used and the quality of finishes also play a role in determining the estimated value of a property.
Property valuations versus property taxes
Property assessments are available to both homeowners and local governments. In fact, municipalities use these assessments to calculate property taxes.
When it comes to property taxes, each municipality in Ontario decides how much money is needed to support its municipal services and infrastructure, including maintaining trails like those in the Mount Nemo Conservation Area and funding emergency services. The municipality then determines the municipal tax rate – this is done by dividing the total funds needed for city maintenance by the total value of properties. In Burlington, the current residential property tax rate is 0.92 per cent. These taxes are then collected from each property owner by applying that rate to the assessed value of their property.
Although real estate valuation and taxation can be a complex matter, understanding this information allows current and future homeowners to make informed decisions regarding their property.
For more information on property value, visit: mpac.ca/valuematters.
