Quote:
Originally Posted by dman72
They will just raise the rate across the board to get the same net effect. You think they are going to let revenues go down by 25%?
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Bingo... the tax burden is what it is... the assessment just says who pays what share (you, compared to your neighbors). So, if everybody goes down 25% because the market tanks... your share of the burden stays the same.
The taxes on Long Island freak me out even more than the prices...
Prices are what they are - you negotiate your selling price and your interest rate before you sign your papers and close. that's on the buyer.
But the tax rates are just insane... and I don't see anybody fixing it. Maybe slowing it... but never lowering it. People will be forced to move/sell/rent etc just based on taxes alone. It's sad really.
On the subject of price/values falling...
I bought last year prepared for the notion that I might take another 10% hit in the short term (as in 5 years). I didn't buy expecting to flip. I also bought less house than I could "afford" (according to banks and brokers) so that we can afford to ride it out instead of selling at a loss.
At closing, our sellers told us that in 2007, they had an unsolicited offer of 535K on their house and held out because they weren't ready to move (retire) - we bought it last year for just over 400K - appraised for 430. So..., I'd say we were probably looking at 15-20% drops from the "bubble" - when we bought. Another 10% felt like a realistic "risk factor" for me.
We could have held out... but we found a perfect house in terms of size and location (and price) and rates were very low (increasing our buying powere) - just set up a refi this week to drop another .75 points.
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