Property taxes - anyone being priced out of your home? (Irvington: new home, construction)
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My town (Cranford) hasn't gotten the memo that we're all suckered in because houses are selling before they even hit the market and if they do, within days. I have friends who grew up here who can't find a house in their own town because people moving from elsewhere (like NYC) are snatching them up.
Same situation in all "middle class" and above towns in Bergen county, especially if there is a train station. Original GI era Cape Cods sell for 300K with multiple offers. I do not think this situation is necessarily that good and I think we are in a bubble. But to say that no one wants to buy in NJ is an exaggeration. I think this will not change substantially until the Manhattan island is not fully submerged in water. I don't think it is that far fetched at this point...
Not everyone pays 24K in property taxes. We pay approx. 6,100. We swim, fish, crab, boat in our backyard. In the spring we plant veggies in our yard. The waterways are beautiful. I can see the point though that 24K can/is high on a limited salary.
Hopefully you turn out to be correct. I surely don't want to belong to the generation left holding the bag if the house prices goes in a downward spiral due to taxes. And anyways for somebody wanting to be work near Manhattan, there is no escape since Westchester county and even Connecticut areas near Manhattan fare no better when it comes to property taxes.
Hopefully you turn out to be correct. I surely don't want to belong to the generation left holding the bag if the house prices goes in a downward spiral due to taxes. And anyways for somebody wanting to be work near Manhattan, there is no escape since Westchester county and even Connecticut areas near Manhattan fare no better when it comes to property taxes.
I'm as against high property taxes as anyone and I believe there is a ton of municipal level waste which helps cause such high taxes. However, housing prices are tied to overall economic performance, neighborhood evolution (location location location) with very little to do with property taxes. So for example, if a town has high property taxes, lets call it a 2% effective rate, that rate theoretically should stay mostly static as house prices rise/fall given the overall economic climate and as the town assesses and reassesses overall values going forward.
I would say the housing here in NJ (and possibly some other states too) is like a big Ponzi scheme. You get suckered into this huge property tax thing and then hope that when the time comes to sell there would be a buyer willing to take it off your hands at a even higher price
In some Bergen county towns, around $2,000 a month for apprx 2,500 sq ft house. Think about it. Around $24,000 a year.
Quote:
Originally Posted by Shet
I am saying in general in NJ. It does not matter whether it is $12,000 or $24,000. The middle class in NJ are all suckers in this game here for the kind of SFH we live in and the amount of taxes we pay for that.
A $24,000 tax bill? That probably means a $1,250,000 home.
Where in Bergen County does a 2,500 sq. foot house go for a $1 million+ price tag? Is it on 4 acres?
Also the size of the yard (i.e. the LAND, and not the house) is the major factor in the value of a property, and thus is a major factor in how much your property tax bill will be. The land accounts for a minimum of HALF your assessed value. It could be approaching 3/4 of a property's value, depending on the town. That means if township codes theoretically allowed you to knock your, e.g. $500,000/$10k-per-year house down, so you could, say, live in a tent or a Winnebago in your yard, you'd still be paying $5k - $7.5k property taxes...for ZERO square feet of house. Because your $500,000 house actually is only worth $125,000-$250,000, and your yard alone is still valued at between $250,000 and $375,000
And then if you ask why a 1500 sq. foot 1960s schidtbox on 1/5 of an acre costs $500,000 in NJ? It's because we're NYC metro. Price tags are that high, because people are willing to pay that much to live here. If you think that's bad, look at the 2-bedroom 1930s schidtboxes in San Fran metro that are approaching $1 million price tags. Or just look across the river where a 500 sq. foot, 1-bath studio costs $1 million (and with $1000/month maintenance fees).
Anyway, people who are shopping around for $1 million+ properties are (1) not middle class, and (2) not being suckered. They know what they're doing, and they know what they want. Obviously, they are not thrilled about $24,000 property taxes, but they're probably not losing sleep over it either. They buy houses with that kind of price tag and that kind of tax bill because they can afford it.
How many people on this forum that are always randomly pulling out this magic figure of $20k+ property taxes are actually paying that?
Among the people that I actually know, only 3 are paying in that range. One is paying nearly $30,000, but he owns a 5,000+ sq. foot house on 2.5+ acres. The vast majority of my NJ friends and family (including myself) are not living on million dollar properties. I think it's safe to say the majority of people in NJ and on this forum are not either.
The average property tax bill in NJ is under $8,000.
Plenty of towns in Bergen county have houses around 1m with 2500 square feet. Taxes are around 25k for less than half acre. To get that price the house has to be in move in condition, recently redone with higher end finishes. Tenafly, cresskill, demarest, closter, ridge wood...and I'm sure there are more. That's the going rate for a 4 bed, 3 bath colonial with really nice kitchen and baths on a quiet street in a good neighborhood. Sad but true.
Plenty of towns in Bergen county have houses around 1m with 2500 square feet. Taxes are around 25k for less than half acre. To get that price the house has to be in move in condition, recently redone with higher end finishes. Tenafly, cresskill, demarest, closter, ridge wood...and I'm sure there are more. That's the going rate for a 4 bed, 3 bath colonial with really nice kitchen and baths on a quiet street in a good neighborhood. Sad but true.
OK, yes, I see what you're saying about Tenafly. The houses have steep listing prices. I don't know about some of those other towns, though. I'm seeing much more modern, fancier, much larger houses and with lower taxes. But I could be wrong.
OK, yes, I see what you're saying about Tenafly. The houses have steep listing prices. I don't know about some of those other towns, though. I'm seeing much more modern, fancier, much larger houses and with lower taxes. But I could be wrong.
Been house hunting in the Ridgewood area for a while, I can verify that YES, about $1m w around $22k+ for about 2500sq ft decently updated house with a small yard.
A $24,000 tax bill? That probably means a $1,250,000 home.
Where in Bergen County does a 2,500 sq. foot house go for a $1 million+ price tag? Is it on 4 acres?
Also the size of the yard (i.e. the LAND, and not the house) is the major factor in the value of a property, and thus is a major factor in how much your property tax bill will be. The land accounts for a minimum of HALF your assessed value. It could be approaching 3/4 of a property's value, depending on the town. That means if township codes theoretically allowed you to knock your, e.g. $500,000/$10k-per-year house down, so you could, say, live in a tent or a Winnebago in your yard, you'd still be paying $5k - $7.5k property taxes...for ZERO square feet of house. Because your $500,000 house actually is only worth $125,000-$250,000, and your yard alone is still valued at between $250,000 and $375,000
And then if you ask why a 1500 sq. foot 1960s schidtbox on 1/5 of an acre costs $500,000 in NJ? It's because we're NYC metro. Price tags are that high, because people are willing to pay that much to live here. If you think that's bad, look at the 2-bedroom 1930s schidtboxes in San Fran metro that are approaching $1 million price tags. Or just look across the river where a 500 sq. foot, 1-bath studio costs $1 million (and with $1000/month maintenance fees).
Anyway, people who are shopping around for $1 million+ properties are (1) not middle class, and (2) not being suckered. They know what they're doing, and they know what they want. Obviously, they are not thrilled about $24,000 property taxes, but they're probably not losing sleep over it either. They buy houses with that kind of price tag and that kind of tax bill because they can afford it.
How many people on this forum that are always randomly pulling out this magic figure of $20k+ property taxes are actually paying that?
Among the people that I actually know, only 3 are paying in that range. One is paying nearly $30,000, but he owns a 5,000+ sq. foot house on 2.5+ acres. The vast majority of my NJ friends and family (including myself) are not living on million dollar properties. I think it's safe to say the majority of people in NJ and on this forum are not either.
The average property tax bill in NJ is under $8,000.
I'm in Bergen County and my taxes are $19.3k on a 2650 Sq Ft house.
It's not a million dollar house and it's of modest size. So why are my taxes so high you ask? Because it's new construction and thus assessed at full market value. Most people with older homes and/or homes that were renovated without pulling permits don't have assessments that reflect actual market value. You should all pray your town doesn't undergo revaluation. Otherwise you're in for a rude awakening of what your tax bill should really be.
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I have friends who grew up here who can't find a house in their own town because people moving from elsewhere (like NYC) are snatching them up.
