True Cost of Buying at Kensington Ridge by Del Webb
Milford Township, Oakland County — 10-Year Ownership Projection at $650,000
How Milford Township's Tax Math Works on a New Build
Kensington Ridge is active new construction, which changes the tax setup compared to a resale. On a newly built home, the assessor sets the State Equalized Value (SEV) at roughly 50% of the build price. At $650,000, that's an SEV near $325,000. Milford Township's gross millage runs approximately 29 mills, and the Michigan PRE removes 18 mills of school operating tax once you file Form 2368. Your effective net millage on a primary residence lands around 11 mills.
Year 1 Tax Calculation
| Component | Amount | Notes |
|---|---|---|
| Build / purchase price | $650,000 | Representative new-build price |
| State Equalized Value (SEV) | $325,000 | ~50% of market value |
| Gross millage rate | 29.0 mills | Milford Twp total levy |
| Less: PRE school exemption | −18 mills | Removed with Form 2368 on file |
| Net millage (primary residence) | 11.0 mills | |
| Annual property tax | $3,575 | SEV × 11.0 ÷ 1,000 |
Resale buyers across Michigan get hit by Proposal A uncapping — the taxable value resets upward at sale. As the first owner of a Kensington Ridge home, your taxable value starts at the SEV from day one. There's no prior owner's capped value to reset from, so your tax bill is predictable from closing forward, growing only at Proposal A's capped rate (CPI or 5%, whichever is lower) for as long as you own it.
Full Monthly Cost Breakdown (Year 1)
| Cost Category | Monthly | Annual |
|---|---|---|
| Property tax (with PRE) | $298 | $3,575 |
| HOA fees (incl. internet) | $340 | $4,080 |
| Homeowners insurance | $569 | $6,825 |
| Utilities (gas/electric) | $230 | $2,760 |
| Total | $1,437 | $17,240 |
What the $340 HOA covers: Lawn care, snow removal, common areas, the resort clubhouse, indoor and outdoor pools, fitness center, pickleball, and bundled high-speed internet. The internet inclusion is worth roughly $60–$75/month of value most buyers overlook when comparing the headline HOA number against communities that don't bundle it — Kensington Ridge's effective HOA net of internet is closer to $265–$280.
10-Year Ownership Projection
Property tax grows at the Proposal A cap (modeled at 2.5% annually). HOA modeled at 3% annual increase, insurance and utilities at 3% per year. As new construction, expect the most stable tax trajectory of any community in this market.
| Year | Property Tax | HOA | Insurance | Utilities | Annual Total |
|---|---|---|---|---|---|
| Year 1 | $3,575 | $4,080 | $6,825 | $2,760 | $17,240 |
| Year 2 | $3,664 | $4,080 | $6,825 | $2,760 | $17,329 |
| Year 3 | $3,756 | $4,080 | $6,825 | $2,760 | $17,421 |
| Year 4 | $3,850 | $4,080 | $6,825 | $2,760 | $17,515 |
| Year 5 | $3,946 | $4,080 | $6,825 | $2,760 | $17,611 |
| Year 6 | $4,045 | $4,080 | $6,825 | $2,760 | $17,710 |
| Year 7 | $4,146 | $4,080 | $6,825 | $2,760 | $17,811 |
| Year 8 | $4,250 | $4,080 | $6,825 | $2,760 | $17,915 |
| Year 9 | $4,356 | $4,080 | $6,825 | $2,760 | $18,021 |
| Year 10 | $4,465 | $4,080 | $6,825 | $2,760 | $18,130 |
| 10-Year Total | $176,703 | ||||
Why Kensington Ridge Costs More Than Bridgewater
Kensington Ridge's $650K representative price versus Bridgewater's $430K resale midpoint is the obvious difference. But the structural cost gap runs deeper: Milford Township's 29 mills vs. Brownstown's 27.67, the higher SEV on a higher price, and a $340 HOA vs. $250. The trade-off is new construction, a larger and more amenity-rich clubhouse, the Milford/Kensington Metropark setting, and zero uncapping risk. Whether the premium is worth it depends on how much the new-build certainty and location matter to you — the full comparison runs the numbers side by side.
Michigan Income Tax Impact for Kensington Ridge Buyers
Starting with the 2026 tax year, Michigan exempts Social Security entirely and provides all taxpayers a combined pension/IRA/401(k) deduction of approximately $65,900 (single) / $131,800 (joint), inflation-adjusted. A couple at this price point likely draws higher retirement income; even at $150,000 combined retirement income, only the amount above the joint deduction is taxed at Michigan's 4.25% flat rate. Compare that to Ohio's 2.75% applied to nearly all retirement income with no comparable deduction, and the higher-income retiree often comes out ahead in Michigan.
PRE Filing — Critical for New Construction Buyers
On a $650,000 home, missing the PRE deadline means a full non-homestead bill at 29 mills instead of 11 — a difference of roughly $5,850 for one tax year. Submit Form 2368 to the Milford Township Assessor immediately after closing. With new construction, also confirm the assessor has captured the correct completed-home SEV rather than a partial-construction value.
Disabled Veteran Exemption
Veterans with a 100% permanent and total VA disability rating qualify for a full property tax exemption on their Michigan primary residence — no income test, no cap. At Kensington Ridge's price range, this exemption eliminates a $3,500–$4,500/year tax bill entirely. Surviving spouses retain the benefit. Apply through the Milford Township Assessor with your VA rating documentation.
Related Resources
See the Oakland County property tax guide for a full breakdown of how Milford compares to Auburn Hills and other Oakland townships, the Michigan retirement income tax guide for the 2026 pension rules, and the total cost comparison ranking all SE Michigan 55+ communities.
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