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Everyone knows we have the highest property taxes in the nation. Most of us grumble about it, but just fork over the money at the end of the day. It’s no secret that many careers are seeing stagnant wages and younger people aren’t making as much money as the generations before them. Do you think we will ever reach a point where the property taxes will be too high for people to pay or will there always be people willing and able to? Basically, how sustainable is the current system in your opinion?
Well, the property taxes here do already have an effect on the price of the house. If you spend enough time looking you can see that when you see similar houses in similar areas (admittedly all kind of fuzzy categories) that have vastly different tax rates.
Obviously there's a difference between putting money into a house where you presumably get it back (and likely you get more back) and having to pay taxes where you get none of it back - although I would say that places with higher taxes do seem to be the places that retain their value in a slump better and they tended to bounce back more quickly after the last housing collapse, so that could take away some of the perception that it's just money wasted.
Either way, there's still a long way to go before things start getting unworkable. Yeah, taxes are high, but for most of the NYC earners it's more a grumble than anything else.
While I agree that we do have punishingly high property taxes overall, I do think this statistic is a bit misleading. If we compare just the NYC area, NJ taxes are definitely lower than Westchester, and on par to slightly-lower than Long Island. CT taxes are lower, but the commute is longer and the actual value of the houses are higher. At the end of the day, it's all about the monthly cash outlay of mortgage + taxes + insurance.
There are a lot of very highly compensated people in the NYC area. Until that changes (or until one of the Hudson River tunnels need to be shut down), I don't really see a major dent in value. If someone bails for greener pastures, there's someone lined up to take their place in the suburbs as it's still no more expensive than city rental + private schools + 4% city income tax.
If you have a well paying job in this area and your kids are in school, then people will continue to pay the high property taxes. However it does not make sense financially for anyone to retire in NJ. I'm still 20 years away from retirement (at least) and can't see myself staying here. I can't even imagine what the property taxes will be 20 years from now.
If you have a well paying job in this area and your kids are in school, then people will continue to pay the high property taxes. However it does not make sense financially for anyone to retire in NJ. I'm still 20 years away from retirement (at least) and can't see myself staying here. I can't even imagine what the property taxes will be 20 years from now.
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.
As long as people have good jobs, i don't think it will caused housing market crash. Yes, Property taxes are high, so are earnings for NJ people.
Property values are still pretty low compare to Queens.
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