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Money Q&A: High Property Taxes And Insurance?

Q.

We saw a house for sale that was in our price range, but it’s something like $25,000 a year for property taxes and $3,700 a year for insurance!

A.

Welcome to home ownership—wait until all your appliances break at once. When it comes to taxes and insurance, “typical” depends entirely on where you live. Insurance, for example, will always be more costly in high-risk areas such as Florida, which gets hit by hurricanes every couple of years.

To find out whether your insurance quote is a sour deal or a sweet one, call the company’s competitors. For property taxes, talk to local real estate experts. But remember, mortgage payments are tax deductible, which help to offset killer property tax.

-- The Nest Editors

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