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Old 09-23-2019, 06:47 PM
 
1,204 posts, read 551,801 times
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Quote:
Originally Posted by Busch Boy View Post
I guess when compared to NYC or Silicon Valley.
Except NYC taxes are much less expensive than NJ. For example, I live in a 4,000 sq. feet of living space, house, with two garages, and a nice-sized lot. The house is worth over one million dollars, yet my taxes are only $9,000, per year, and pretty soon much less. In NJ, I will pay at least $15,000 or more for this space.

My front neighbor's son lives in Franklin Lakes, NJ, and pays $35,000 taxes per year on his house.......so this is how it works. NYC prices the homes at a higher- price, and charges you less taxes. When you move, you take all that money with you. NJ charges you less for the house, and places horrendous property taxes on it......go figure...
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Old 09-23-2019, 06:50 PM
 
1,204 posts, read 551,801 times
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Originally Posted by TheEmissary View Post
Please call me when you can get a 3000 sq ft house in Ridgewood with $1200 a year tax bill for $250,000 and I'll move back.
In New Jersey, my girlfriend owns a hut, and pays more taxes than $1,200 per year......like $8,000!!!!!
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Old 09-23-2019, 06:52 PM
 
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Default sasie123

In New Jersey, one has to see the forest apart from the trees.....
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Old 09-23-2019, 07:00 PM
 
Location: Noth Caccalacca
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Originally Posted by 46H View Post
There are many variables. You could look at it this way - if your property taxes are $1200/month and your mortgage is paid off, a case can be made that you could stay in NJ. This assumes you could afford the $1200/month and do not need the money value of your house to live.

There will always be cheaper places to live. Paying property taxes only for housing might still be affordable for many people.

I know people who think paying "$1200 a year" constitutes "high taxes" ...nevermind $1200 a month! Too many people in NJ are like those frogs slowly being boiled alive when it comes to property taxes.

Here's a fairly simple rule to figure out how much you'd get for your house and pay in taxes if you moved your house from NJ to NC. Figure it's on a quarter acre to an acre or so depending on the size!

1. Multiply the square footage of your house by $70 if it's in a "meh" town or by $120 if it's an "OK" town or $240 if it's in a "ritzy" town. That will give you the rough cost of your house.

2. For your taxes, exurban areas have few services so your tax rate might be 50 cents per assessed $100 of value, suburbs would be 80 cents per assessed $100 and a city like Charlotte might be $1.40 per assessed $100. Divide the number you got in 1. by 100 and then multiply it by .5, .8, or 1.40. That's your yearly tax bill.

Run the calculations and you'd have a good idea of what your 'transplanted" house is worth and what you'd pay in taxes. Something to think about!
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Old 09-23-2019, 07:38 PM
 
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Quote:
Originally Posted by sasie123 View Post
Except NYC taxes are much less expensive than NJ. For example, I live in a 4,000 sq. feet of living space, house, with two garages, and a nice-sized lot. The house is worth over one million dollars, yet my taxes are only $9,000, per year, and pretty soon much less. In NJ, I will pay at least $15,000 or more for this space.

My front neighbor's son lives in Franklin Lakes, NJ, and pays $35,000 taxes per year on his house.......so this is how it works. NYC prices the homes at a higher- price, and charges you less taxes. When you move, you take all that money with you. NJ charges you less for the house, and places horrendous property taxes on it......go figure...
On the flip side you have a higher state income tax as well as a close to 4% city tax on your income that you don't have to pay in NJ.

NY and NJ are both high tax states. NY being rated #1 overall in tax burden in the country.

They both suck on this front and both are well known to have corrupt inefficient and expensive local governance and public works.

However at least they are relatively safe metropolitan areas. We have this going for us at least.
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Old 09-23-2019, 08:55 PM
 
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Originally Posted by TheEmissary View Post
Oh, I quite agree that NJ is a great place to live. But as a retiree living on ~$25,000, staying in NJ didn't make economic sense. If I still lived in my house in Paterson (one of those ubiquitous Cape Cods near the Totowa border) I'd be paying a third of my income in property taxes and for what? What good is that 8 grand of taxes going to do for me? Pay for cops that make 3+ times my old salary or a teacher that makes twice as much and complains about being poor. A failing school system and sketchy neighbors very different from the ones I grew up with, would be my big reward for staying. No thanks!

For those folks who might suggest I should have moved or gotten a better job, well I did save a pile over the years, but should I have spent it on a house in Wayne with a $15,000 tax bill? That doesn't make economic sense. You don't need Suze Orman to tell you that living on $12,000 of SS, you're not going to be moving to San Francisco to live in one of the "painted ladies" like the residents of "Full House" anytime soon.

Selling the house in NJ and moving into a new house three times the size suits me just fine. I have, in essence, two living rooms, one with a grand piano in it and the other with a home theater setup. If I still lived in my old house, the piano alone, would have taken up 60% of the old living room's floor space. Just 4 years of tax savings will get me a new Toyota RAV4. What could you do ...with your newly found largess?

Sure, the pizza isn't as good here and Charlotte isn't New York City, but to suggest that life is so much less if you don't stay or live in NJ, is just plain wrong.

Even with the 2% cap on tax increases (ROTFLMAO over that joke!) the feces will hit the fan and you'll start to see prices on housing in NJ stay flat, while the rest of the country's housing increases with inflation close to the CPI. The next big recession and NJ's looming pension crisis will keep prices from escalating to San Francisco levels. Stock up on the Rice-A-Roni though. You might need it when the newly increased tax bill arrives next quarter ...as you know it will!
exactly. stop promising these cops and teachers fat pensions!!!
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Old 09-23-2019, 09:15 PM
 
832 posts, read 710,740 times
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Quote:
Originally Posted by Slunk View Post
On the flip side you have a higher state income tax as well as a close to 4% city tax on your income that you don't have to pay in NJ.

NY and NJ are both high tax states. NY being rated #1 overall in tax burden in the country.

They both suck on this front and both are well known to have corrupt inefficient and expensive local governance and public works.

However at least they are relatively safe metropolitan areas. We have this going for us at least.
Other elephant in the room...if you have children and want to give them a quality education in NYC, even the very best and richest neighborhood, be prepared to bend over and take it deep for private school tuition, while in a decent NJ town, your high property taxes will suffice. And if you have more than one kid? Fugheddaboutit!
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Old 09-23-2019, 09:21 PM
 
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the school system in NYC schools are horrible, even in the so called good ones that have an extreme overcrowding issue
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Old 09-23-2019, 11:31 PM
46H
 
1,058 posts, read 640,776 times
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Quote:
Originally Posted by sasie123 View Post
Except NYC taxes are much less expensive than NJ. For example, I live in a 4,000 sq. feet of living space, house, with two garages, and a nice-sized lot. The house is worth over one million dollars, yet my taxes are only $9,000, per year, and pretty soon much less. In NJ, I will pay at least $15,000 or more for this space.

My front neighbor's son lives in Franklin Lakes, NJ, and pays $35,000 taxes per year on his house.......so this is how it works. NYC prices the homes at a higher- price, and charges you less taxes. When you move, you take all that money with you. NJ charges you less for the house, and places horrendous property taxes on it......go figure...
Your NYC pricing does not apply to Manhattan where one million will get you a nice 1 BR or a smaller 2 BR and 1 toilet, without parking and land . In Manhattan, this means a co-op or condo with maint/taxes around $1500/mnth or more (18,000/yr) and a hard look at private schools.

Your decision to move to a borough of NYC besides Manhattan was a valid choice for you - but it was a worse choice for us based on our situation. We left Manhattan for NJ when it was time to apply for public middle school. If we needed a private school, the cheapest tuition at the time was at the Catholic schools - around $10k/yr.
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Old 09-24-2019, 04:00 AM
 
454 posts, read 406,285 times
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For this conversation I’d be more focused on the nicer Essex towns closer to NYC with 3.0% effective taxes. Montclair, Glen Ridge, West Orange etc. throw in some other premium towns with lower effective taxes but higher housing costs. Summit short hills etc

Why? they are pretty much leading the pack on breaking the magic calculus of NJ mortgage + tax versus NYC income tax and tuition. That seems to be the obvious tipping point for a true forseable ceiling on NJ value. So those premium towns would reach a potential cap first, with most of the rest of NJ with longer commutes etc to be discounted off of that....And that breakeven point math for NJ vs NYC isn’t exactly 1:1 given the general economics imply that people put more value on time (living in the city without the commute) versus the positives that come with suburban living (yard/space).

While we are still a ways away from NJ to reach that threshold, those towns listed above, amongst some others, are quickest to to do it...although lower westchester will be first to hit that ceiling (or maybe not since their effective taxes are closer to 2.5% as opposed to 3.0%)

Over the past 15+ years, take a 2500 SF house, taxes have gone from low teens to high teens, then 20k became the new norm 5-10 years ago, then 25k, now some breaking 30k. You kind of wonder when it hits a ceiling. These are still working professional towns (not uber reach business owners etc). The pool of buyers starts shrinking rapidly when you exceed the top 10 / top 5% earners. How much are people really willing to pay on taxes? If 25/30 becomes 45k+ in 10-15 years from now, What would happen? What’s the real tipping point? Taxes exceeding equivalent of NYC private tuition x 1.5 average kids? At what point do people stop justifying NJ schools/commutability, and/or towns need to retool their budget.

Last edited by JaRuss01; 09-24-2019 at 04:35 AM..
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