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My husband and I have spent the past couple of months trying to decide whether or not we should stop renting and buy a house. We just really cannot decide if buying is a good thing to do in NJ.
We've lived here for 6 years. Rented the whole time, and of course we would like to own a house some day. But here? We would prefer living some place else in the country, but we're also practical. It could be another 6 years before he gets a job someplace else.
So, we're approved through our credit union to buy. We'd like to stay around $200k maybe up to $250k. But everything we look at is in pretty sad shape. I think people can't afford to keep up their properties because the taxes are so high. Would that happen to us?
We can rent a decent house for $1800-$2000. Buying puts us right at about the same amount. But then of course, we don't have to worry about the roof, or flooding, or buying a new refrigerator.
So, because the costs are so similar, we cannot talk ourselves into plunking down the money. The property taxes seem to kill here. I cannot imagine locking myself to a house that may or may not appreciate, and most likely will need maintenance when my property taxes are about the same as a total mortgage payment in other parts of the country.
How did you decide to buy? What made it worthwhile for you? I still have the nagging sensation that renting is doing us no favor.
I've been a renter, and now an owner. Honestly, I feel more secure owning. You don't worry about a landlord invading your privacy, not fixing the property, or going into foreclosure. You can fix the place up anyway you want to ... for me, it just made more sense. Where are you thinking about living? I live in Burlington County and find the prices and taxes to be quite reasonable.
If you really would prefer to move somewhere else, renting makes sense. If you're not putting down roots for at least 5-10 years, renting is probably a better choice. Don't get caught up in missing the boat -- the market is far from hot and is unlikely to really move in the forseeable future. I'd recommend putting more money away for when you are really ready to buy.
I don't think that the way you figure it out in NJ is quite the same as anywhere else. Other places have property taxes in the $2000 and under range for large homes. Here, you get a regular size home around 2000 square feet and property taxes are in the $6000 - 7000 range.
And in the area we're looking (Galloway Township) they don't even provide trash pickup. You have to pay extra to have a company come and do that. And the schools still have referendums to fund things like new roofs. I don't know where all of that tax money goes. But it doesn't seem to pay for things other parts of the country manage to fund with lower tax rates.
I guess I kind of feel like buying a house in NJ just doesn't get you much for your money because I know that in North Carolina or Texas you could get a much nicer home with sidewalks and decent roads that you can't get here for the same money. But, we need to stay here until my husband finds a comparable job. It's really no use to say "just move." That's not an option in this economy. You stay where you have a solid job.
So, you buy a house in NJ and even after you pay it off, you have to make what amounts to another mortgage payment every month in property taxes. PLUS you may have to pay for all new electrical, or a new roof. Or MOLD remediation because of the crazy humidity here. I am not a fan of mold. That's what makes me think we should just keep renting.
I don't understand the point of buying if you already know you'll want to move when your husband gets a job somewhere else. You may not even make your closing costs back. To me it's like marrying someone you already know you don't want to be with long term...keep renting. When that opportunity finally arises, you'll be free to grab it.
...We would prefer living some place else in the country, but we're also practical.
How did you decide to buy? ...
I want to live in NJ. You don't sound happy to be here and should concentrate on the state that will work for you.
There are too many people that complain about living here, but still come here for employment. Go find a job in the state that makes you blissfully happy!
I don't think that the way you figure it out in NJ is quite the same as anywhere else. Other places have property taxes in the $2000 and under range for large homes. Here, you get a regular size home around 2000 square feet and property taxes are in the $6000 - 7000 range.
And in the area we're looking (Galloway Township) they don't even provide trash pickup. You have to pay extra to have a company come and do that. And the schools still have referendums to fund things like new roofs. I don't know where all of that tax money goes. But it doesn't seem to pay for things other parts of the country manage to fund with lower tax rates.
I guess I kind of feel like buying a house in NJ just doesn't get you much for your money because I know that in North Carolina or Texas you could get a much nicer home with sidewalks and decent roads that you can't get here for the same money. But, we need to stay here until my husband finds a comparable job. It's really no use to say "just move." That's not an option in this economy. You stay where you have a solid job.
So, you buy a house in NJ and even after you pay it off, you have to make what amounts to another mortgage payment every month in property taxes. PLUS you may have to pay for all new electrical, or a new roof. Or MOLD remediation because of the crazy humidity here. I am not a fan of mold. That's what makes me think we should just keep renting.
Where property tax money goes is public information. Some towns plow more money into the school system than others, some have more of a corporate presence which can ease the tax burden from homeowners. When it comes down to it, you can find a town with priorities that meet yours. But like others have said, if you don't plan on sticking around long term, it doesn't make a lot of sense to buy.
OP,
When you rent you pay all the owners costs plus a profit margin. When you own you pay all the costs and no profit margin. Do the math.
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