I dont have kids YET, but looking to buy... (real estate market, mortgage)

[scottzilla]

Originally Posted by Jrprofess

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.

Absolutely, perception is huge. I also agree my way of thinking probably isn't the norm. I know a few people who live in houses I would never, ever want to live in because it is in that "Good" district.
We agree more than we disagree.
I'm a mid-suffolk boy so my opinion is based on my own experiences. What I said earlier about paying for the "Better" district is mostly true (Of course there are exceptions). WM Floyd and South Country residents generally pay lower taxes than Three Village and Longwood, for example. It's certainly not absolute though.

[OhBeeHave]

Originally Posted by scottzilla

I'm a mid-suffolk boy so my opinion is based on my own experiences. What I said earlier about paying for the "Better" district is mostly true (Of course there are exceptions). WM Floyd and South Country residents generally pay lower taxes than Three Village and Longwood, for example. It's certainly not absolute though.

Property valuation, school budgets, district size, and commercial property play into that. Three Village taxes would be less if SUNY paid taxes. NYS entitities typically do not pay taxes to local government or schools.

[scottzilla]

Originally Posted by OhBeeHave

Property valuation, school budgets, district size, and commercial property play into that. Three Village taxes would be less if SUNY paid taxes. NYS entitities typically do not pay taxes to local government or schools.

Well sure-there are many factors. Three Village is a more "Pricey" district than Longwood and is perceived to be "Better".
Brookhaven National Lab pays taxes for Longwood so you will find examples all over LI.

[modmondays]

Originally Posted by Elke Mariotti

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

thanks...please let me know if you find out

[OhBeeHave]

Originally Posted by scottzilla

Well sure-there are many factors. Three Village is a more "Pricey" district than Longwood and is perceived to be "Better".
Brookhaven National Lab pays taxes for Longwood so you will find examples all over LI.

If Longwood had waterfront property, Longwood houses would be more expensive, too. This harkens back to my first post on this thread -- amenities figure into an area's desirability. Each person has a different idea of what is desirable.

There are currently 52 homes in the Longwood School District under $200K and none in the 3V, so Longwood is a real bargain for a man starting out.

A person without kids (OP) can get a lot more house in Longwood. The question is, what is their lifestyle, their needs?

Look at people living in NYC. Their schools aren't perceived to be better than those on LI. Yet we have multi millionaires and billionaires living there, opting to send their children to private schools. Then again, those people are living in the 'pricey' parts of town as opposed to the regular Joes.

That is another facet to visit. People tend to live amongst people who are similar to themselves be it ethnicity, education, religion, economics. We see areas on LI which are heavily Italian, primarily Jewish, Asian or Middle Eastern, blue collar, white collar, or mainly minority.

When one thinks of one of the 'top' LI districts, what does one think of? The residents of the area are generally well off, well educated, and place a serious value on the quality of education. (To make clear, I am talking more along the lines of Jericho, Great Neck, Syosset, etc. the real heavy hitters.) Does anyone here believe that any of those homeowners would pay less for more house in what is perceived by them to be a lower quality district?

To the OP I would tell him not to buy on the high end of what is perceived to be a district of lesser reputation, but to buy something reasonable in a decent district, as long as he is happy with the area. Trying to buy into what is perceived to be a 'better' district at this point might mean a handyman -- and does the OP want to start putting more money into the house, not knowing how the market will fair? Of course we all want our homes to appreciate, but who knows what this market will bring and how long it will take to rebound?

[Elke Mariotti]

Originally Posted by modmondays

thanks...please let me know if you find out

ok, here's the latest :-)

Some conventional lenders are currently at $729,000, some went down to $625,500 - you'd have to ask. FHA is currently up to $729,000.
But--these things can change daily!

HTH :-)

[twingles]

It depends on how long you want to be in the house you buy - if you think you'll be there when you have kids, buy in a good district. And a good district helps your re-sale since most buyers will have families or want a family soon. We bought in a fantastic school district and although home prices have dropped, not so much where I live.

[modmondays]

Originally Posted by Elke Mariotti

ok, here's the latest :-)

Some conventional lenders are currently at $729,000, some went down to $625,500 - you'd have to ask. FHA is currently up to $729,000.
But--these things can change daily!

HTH :-)

Thanks. Do you know if these are being phased-out anytime soon? I think they are and will go back to the $429k level once again making it even worse for the local sales environ as Jumbos just are not much fun now

[Elke Mariotti]

Originally Posted by modmondays

Thanks. Do you know if these are being phased-out anytime soon? I think they are and will go back to the $429k level once again making it even worse for the local sales environ as Jumbos just are not much fun now

Fannie/Freddie Mac limit is $417K. The higher limits are temporary and really just for designated high cost areas - for obvious reasons, Long Island qualifies . At this time, the higher limits are expected to be in effect for 2009, but who knows? Could be over sooner, or if we're lucky, be extended into next year

[dubstyle247]

anthonylongisland....this is strictly my opinion and not intended to be debated. of course the school district reflects the resale price of your home! my family personally owned a beautiful cape (totally redone) on 1 acre in bayshore. it was true ownership pride. the entire property was professionally landscaped and was described as a "park like setting". however, we belonged to brentwood school district and therefore it reflected in our sale price. my family took a major loss on their home and it was a shame. needless to say, the once beautiful home is now a lovely (probably illegal) rental house with eight bedrooms!!! i personally went to brentwood school district therefore i can voice my opinion on it. point being, no matter how wonderful of a home and property you have, when it comes down to it, you still have to live in the neighborhood and (eventually) send your kids to the school. buy with long term in mind. good luck!