I dont have kids YET, but looking to buy... (Brookhaven: sales, rental)

[OhBeeHave]

Originally Posted by Jrprofess

Although KellyFG has a very refreshing and open-minded perspective on areas and school districts, and is right in many ways, most buyers on Long Island tend to not be like her...unfortunate but true. So you can look past an areas school district because it does not impact you at present, but it does impact your homes resale (especially in this part of the country). You might want to think about your potential buyers perception to a degree.

A home in Longwood district will sell cheaper than a home in Three Village based on the schools. Of course this limits whether or not you can enter into the community at your price point as well. If you are faced with a coin flip on homes and areas, my recommendation is to go with the stronger district, perceived or otherwise. There is less risk that way. Just my two cents.

Building a little upon your reply:
Schools are certainly a huge factor in home pricing/desirability.

Some areas will sell for more/less dependent upon what amenities the area has to offer as well. Some people are willing to pay more for the water while others are content to be further inland. Some folks want to be situated on the golf course while some could care less.

School districts plus amenities helps drive the cost of homes in areas, too.

[I_Love_LI_but]

Originally Posted by scottzilla

However, the difference between a "Good" school district and a "bad" school district can be several thousand dollars in taxes. Keep that in mind. The boom is over, thus any value a "Good" district has to offer has been minimized-except for the taxes.

That is just not true. "Bad" or "mediocre" school districts eat up just as much or more taxes than the "good" ones. Like mentioned before on this thread, due to the crazy way of determining property taxes, it is a case by case (house by house) basis. You can have a house in Lynbrook that is in SD#20, which is very well regarded and a comparably priced house in Lynbrook in the other school district that serves Lynbrook the most which is a MUCH less regarded school district and the taxes are exactly the same or even more in some cases in the mediocre school district. Nobody on Long Island gets a "discount" on property taxes for being in a mediocre, bad or "developing" school district. That is why I say "vote with your feet" and simply do not accept mediocre school districts. They charge high taxes too and if enough people shun them, the powers that be will get the hint that the gravy train is leaving the station and perhaps it will light a fire under their butts and some positive changes will occur.

[TomMoser]

If you are planning to live there for the long term, I would look for a nice stable middle-class neighborhood. School district ratings tend to change over time. So, since you don't have any kids yet, I don't see the point in paying up for one of the best rated districts. At the same time, the very bottom rated districts tend to have problems that go beyond the schools.

[rkk12]

I lived in Westchester before, and from what I saw there, I came to the concllusion that it is best to buy in the best school district ( perceived) you can afford. For example, in westchester, the top-tier districts were Scarsdale, Chappaqua. Property values there have appreciated 12% a year ( avg over many 20-30 years). Compare this to an avg district ( white plains, portchester) in westchester, the appreciation on avg is about 8%. The top-middle districts like Harrison, Rye, Rye-Brook appreciates at 10-11%.

Its probably true for long island too. You pay higher taxes, but your property also appreciates more in a top-tier school district. I except homes in Jericho(maybe considered equivalent to .. but cheaper than Chappaqua in Westchester) or Garden City ( maybe equivalent to but cheaper than Scarsdale) appreciate a lot more than Mineola for example.

Originally Posted by LilTownBlues

I'm curious to know if there are any hard figures or charts that could really explain this resale thing more clearly?

I understand that, generally speaking, a perceived "better" school district will tend to generate a higher selling price for homes. However, the resale benefit is directly related to the original purchase price which was likely higher in the first place. Therefore, once one factors cost and other impacts to value, the actual gain on resale from "better" school district may be negligible or non existent based on an equal initial investment. In other words:

I buy a house for $100,000 in "regular" school district. I also buy an equivalent one in "fancy pants" school district for $125,000 (obviously worth more because of the district). For sake of argument, let's say the market turns good and housing is growing at 5% per year in regular district and 7% in "fancy pants" (because of the obvious superiority of it). This means if I sell in 5 years I recognize profit of $25,000 in "regular" district compared with $43,750 in "fancy pants". Clearly my profit was better in "fancy pants", but at the end of the day I should have $50k in my pocket instead of $43k since I spent $25k less in the first place. I could have also used the $25k to turn the "regular" district house into a clearly superior house and ended up with a much higher valued home and potentially seen a higher profit from that.

I recognize that in the real world things are not that simple, nor are most homes bought on a cash basis. I guess my point is simply that to base a decision to make a real estate investment (that is usually one of the largest investments a person would ever make) strictly on a narrow focus is probably not the way to go. It's also that since there are so many factors that influence resale values, and since none of us can really predict the future, then leaving all of one's eggs in one basket (in this case the school district basket) is generally not the best approach.

[HomeFinder15]

Even though you are young and have no kids yet, looking in a 'decent' school district is your best bet. Resale value should be part of your decision making process, even if you plan to stay in the house for a long time. Things changes and you never know. I know of folks who bought their home with a 5-year plan and still live there 15 years later (that would be me and my DH ) and others who bought intending to stay, but then met 'the right person' who didn't want to live there and so had to sell only 2 years later.

And actually, the need for services in a school district can begin as early as a child's second or third year. My son needed early intervention at late 3's and my school district got him the services he needed. Surprise everyone- I am in Levittown!!!!!

[Elke Mariotti]

Originally Posted by rocafeller05

I will take a small house in Wantagh for 300K...along with my tax write offs and my $8,000 tax credit if bought before Dec. 31st. Still beats renting hands down.

Just want to clarify the date(s) to qualify for the $8,000 tax credit: If you're buying in 2009, you must close prior to December 1st, or to put it another way, to qualify, you cannot close later than November 30th.

[rocafeller05]

^^ Really? Thanks for the correction. I could have sworn I read that you need to close by the 31st.

[modmondays]

Originally Posted by Elke Mariotti

Just want to clarify the date(s) to qualify for the $8,000 tax credit: If you're buying in 2009, you must close prior to December 1st, or to put it another way, to qualify, you cannot close later than November 30th.

Elke, do you know when the high priced area-conforming loan limit ends as well...or has it already? (That would be the $729k Fannie/Freddie limit for Nassau Cty which alleviates the need in some cases for having to use the dreaded Jumbo loan......)

thanks

[Jrprofess]

Originally Posted by scottzilla

I find discussions relating to school districts to be quite strange and funny at times. So many districts are the same and one is hardly better than the other and people's perceptions are often laughable.
I have 2 kids now and honestly, chose my house based on where I wanted to live and didn't care at all about the school district. I still don't care. Children get out of school what they put into it.
If your kid needs special attention from any school district on LI, you will have to fight to get it. Every school has positive and negative influences attached to it.
From a "property value" position, the difference in districts is a bit more dramatic. However, the difference between a "Good" school district and a "bad" school district can be several thousand dollars in taxes. Keep that in mind. The boom is over, thus any value a "Good" district has to offer has been minimized-except for the taxes.

I think the consistent point others and myself have been making is that perceptions drive markets to a degree. Your perspective is not the norm (not saying it is incorrect). Most buyers will walk into a home buying situation and do school district comparisons. That is very common for this region. As for the property tax difference, as others have pointed out, it is high across a spectrum of low or high performing districts, perceived or otherwise. With the boom over, one could argue that you can now buy into better performing (again perceived or otherwise) districts where before a price point would have kept you from considering them a few years ago. And to be clear in response to Rocafeller, I have stated that price is of course the overriding factor, and will potentially limit where you could go.

But who could really argue that, all things being relatively equal, if you can get into Sayville school district versus say neighboring Connequot, you would not have positioned yourself better for the long run? I am not even saying one district is better or worse than the other, it is though generally "perceived" to be the case. And since buyers tend to be sheep and will look at schools, it is a factor.

[Elke Mariotti]

Originally Posted by modmondays

Elke, do you know when the high priced area-conforming loan limit ends as well...or has it already? (That would be the $729k Fannie/Freddie limit for Nassau Cty which alleviates the need in some cases for having to use the dreaded Jumbo loan......)

thanks

It's currently $625,500 for FHA in our area. Awaiting confirmation on conforming loans...