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"Shack"=needs major renovations, old kitchen, dingy bathrooms, dirty carpeting, wallpaper coming off, creaky floors/stairs, small bedrooms, little or no yard, unfinished basement... etc... I could go on and on about the houses that we've seen (all over $1 million).
"Shack"=needs major renovations, old kitchen, dingy bathrooms, dirty carpeting, wallpaper coming off, creaky floors/stairs, small bedrooms, little or no yard, unfinished basement... etc... I could go on and on about the houses that we've seen (all over $1 million).
Candice, the reason you are seeing "shacks" is because of your property tax requirement. Every time you make major renovations on your home, your property taxes go up. Most higher end homes in the $1MM plus range will use licensed contractors which require permits. Anytime you get a permit the town comes in and sees the work that was done and reassess your house. One way to keep your taxes low is to never update anything. If you allow for property taxes to go up to around $20K+( a more "normal" range for a house in north NJ at that price point) the "shack shopping" will disappear.
Your real estate agent should have explained this to you.
Candice, the reason you are seeing "shacks" is because of your property tax requirement. Every time you make major renovations on your home, your property taxes go up. Most higher end homes in the $1MM plus range will use licensed contractors which require permits. Anytime you get a permit the town comes in and sees the work that was done and reassess your house. One way to keep your taxes low is to never update anything. If you allow for property taxes to go up to around $20K+( a more "normal" range for a house in north NJ at that price point) the "shack shopping" will disappear.
Your real estate agent should have explained this to you.
Thanks for your response!
I think it also depends on what town you're looking at. For instance, in Englewood Cliffs, even if you do major renovations, the taxes are still relatively low. There are plenty of $2 million dollar homes with property tax of $10k. Our problem is that we just don't want to go over our budget.
I think it also depends on what town you're looking at. For instance, in Englewood Cliffs, even if you do major renovations, the taxes are still relatively low. There are plenty of $2 million dollar homes with property tax of $10k. Our problem is that we just don't want to go over our budget.
The reason for the low property tax in Englewood Cliffs is because of all the corporate headquarters located there. The problem is that the quality of the houses at that price point are not as good as what you would find in towns with higher taxes. Basically you pay $1MM for a house that would only cost $900,000(or less) in a similar town with more normal NNJ taxes. The low tax rate drives up home prices(basic supply and demand economics). Instead of concentrating on the total property taxes( which are deductible anyway) you should decide on your total monthly payment target and go from there, that will allow you to widen your search outside of the $1MM "shack" ridden Englewood Cliffs. Just my opinion. Good luck, I'm sure you'll find something soon.
PS I don't mean to pick on Englewood Cliffs. The same will be true for any area with "low"/"lower" taxes. Everything in Jersey comes out in a wash when it comes to real estate. You get exactly what you pay for and there is a reason for every price.
Last edited by Goldendoodle1969; 09-08-2010 at 10:47 AM..
not for nothing, but you didn't answer the question. what do you consider a shack?
i'm truly baffled by the OP. no offense to the OP, but I don't think there are many "shacks" in NJ anywhere for $1M.
gonna need some more details on what type of house. i think you can find tons of houses for $1M or less in S.O., but taxes are probably over $10,000. Montclaire?
The reason for the low property tax in Englewood Cliffs is because of all the corporate headquarters located there. The problem is that the quality of the houses at that price point are not as good as what you would find in towns with higher taxes. Basically you pay $1MM for a house that would only cost $900,000(or less) in a similar town with more normal NNJ taxes. The low tax rate drives up home prices(basic supply and demand economics). Instead of concentrating on the total property taxes( which are deductible anyway) you should decide on your total monthly payment target and go from there, that will allow you to widen your search outside of the $1MM "shack" ridden Englewood Cliffs. Just my opinion. Good luck, I'm sure you'll find something soon.
PS I don't mean to pick on Englewood Cliffs. The same will be true for any area with "low"/"lower" taxes. Everything in Jersey comes out in a wash when it comes to real estate. You get exactly what you pay for and there is a reason for every price.
We're looking for a house around $1 million. We love that Englewood Cliffs has such low property taxes (all around $8-10k). But I hate the fact that we could only afford a shack in Englewood Cliffs whereas we would be able to get a nice home elsewhere, KWIM?
With all due respect, if you can afford a $1M house, why be so cheap regarding the taxes? Doesn't make sense to me, at all. You're gonna get a quarter to a third of the property taxes back on your federal returns, anyway.
If you can afford $1M for the house, why not just buy some land and have it built to your specifications. Then it would all be new, and to your liking.
And if you pick an area where taxes are low, maybe there won't be so much of a bite once your new place is assessed.
The reason for the low property tax in Englewood Cliffs is because of all the corporate headquarters located there. The problem is that the quality of the houses at that price point are not as good as what you would find in towns with higher taxes. Basically you pay $1MM for a house that would only cost $900,000(or less) in a similar town with more normal NNJ taxes. The low tax rate drives up home prices(basic supply and demand economics). Instead of concentrating on the total property taxes( which are deductible anyway) you should decide on your total monthly payment target and go from there, that will allow you to widen your search outside of the $1MM "shack" ridden Englewood Cliffs. Just my opinion. Good luck, I'm sure you'll find something soon.
PS I don't mean to pick on Englewood Cliffs. The same will be true for any area with "low"/"lower" taxes. Everything in Jersey comes out in a wash when it comes to real estate. You get exactly what you pay for and there is a reason for every price.
Thanks for your input.
It also has to do with the fact that there is no high school in Englewood Cliffs. But like I said, I'd been planning to send my children to private high schools, so it's not a deal-breaker for us.
i'm truly baffled by the OP. no offense to the OP, but I don't think there are many "shacks" in NJ anywhere for $1M.
gonna need some more details on what type of house. i think you can find tons of houses for $1M or less in S.O., but taxes are probably over $10,000. Montclaire?
No offense taken.
You should see some of the homes that we've seen for OVER $1 million. We've seen at least 20 properties, and they all needed major renovations. I'm still hoping there will be something available soon that will meet our criteria...
IMO, Taxes are like religious tithings. The distinction is whether you give your money to some church, benefitting the pastor and his/her family, or you give it to the state/feds, and let them waste it through their own mechanisms. With ether one, SOME of it DOES make it to the needy.
Why would you want to lo-ball on your taxes, if you can afford a million in property value? Seems to me this is more of the wealthy who don't want to pay their fair share.
I don't LOVE paying taxes, but I feel it is imperative to help the less fortunate, and to maintain our infrastructure.
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