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Old 04-19-2008, 07:19 AM
 
Location: Belmar, NJ (DJ'ais Resident)
59 posts, read 105,042 times
Reputation: 26

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How ya doing? Listen, I have considered purchasing my first home, probably in Central Jersey(Union County) and I was wondering if this may be a sound investment or not.

I have compared the market in Central NJ to SF Bay Area and it seems like over 30 years, the difference in property taxes between NJ and CA can be in the neighborhood of 100K. So, we are talking about an additional 100K given away to the government if you choose to live in NJ vs living in CA.

In terms of appreciation, SF appreciates more historically but NJ is not far behind. Anyways, my question, how would you justify buying in NJ? Give me some logical argument, I do not want to hear any BS like "NJ is the best place on Earth..so..that is why I pay 7 grand in property tax".
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Old 04-19-2008, 07:33 AM
 
Location: Murphy, NC
3,223 posts, read 9,631,472 times
Reputation: 1456
Would your salary be the same in the Bay area? California is gonna fall into the ocean within a few years. Are you having problems affording things lately? lol. My philosophy is when things cost more, MAKE MORE MONEY. Of u could buy a cheaper home and flip it but keep it for urself. That would be fun. But i never been to the bay area, I heard there's alot of liberals and asians there.
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Old 04-19-2008, 07:44 AM
 
3,353 posts, read 4,966,793 times
Reputation: 964
You cannot be a guido in the SF Bay area.

I have no other practical advice :-/
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Old 04-19-2008, 08:04 AM
 
Location: Piscataway, New Jersey
531 posts, read 2,150,445 times
Reputation: 162
Quote:
Originally Posted by NJGUIDO View Post
I have compared the market in Central NJ to SF Bay Area and it seems like over 30 years, the difference in property taxes between NJ and CA can be in the neighborhood of 100K. So, we are talking about an additional 100K given away to the government if you choose to live in NJ vs living in CA.
Since you've started crunching the numbers (to your credit), I suggest you further crunch the numbers to compare the total tax burdens between both regions. Property taxes is just one tax. What's the difference in the gas tax? I am sure that's much higher there than here. Also, what about sales taxes levied on food and clothing? And any differences in state and/or municipality income tax rates?

And let's not forget that home prices are more expensive in the bay area, so that means you pay more interest to the bank.

There is near-consensus among people I've spoken to who've lived in both regions that living in central NJ is less expensive (overall) than living in the Bay Area. Clearly, the difference is not due to property taxes. I recommend further investigation.
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Old 04-19-2008, 08:39 AM
 
Location: Cranford NJ
1,049 posts, read 4,020,902 times
Reputation: 405
If you need to live in this area, ( family, work etc. ) then it may not be an option. However, what would it cost to rent vs. buying. You are throwing 100K taxes over 30 years into the equation, To rent a modest apt/ home should be $1800 - $2000 mo= $23,000
avg. x 30 years ( without calculating increases ) =$690,000.
It's cost of living... face reality...

Buying would actually be a better investment...over time than renting. BTW The tenants pay the property taxes ( indirectly )
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Old 04-19-2008, 11:59 AM
 
29 posts, read 89,991 times
Reputation: 24
Hey NJGUIDO, why would you even consider anywhere other than Jersey? Aren't you the one who posted that ridiculous video of that moron dancing in the diner parking lot? I thought that made you so proud to be from Jersey. BTW, I'm Italian,too.
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Old 04-19-2008, 06:21 PM
 
323 posts, read 2,089,787 times
Reputation: 172
Along with what the others have said..

It's absolutely worth buying in NJ... yes, prices are high, but not nearly as high as some compareable areas in lets say queens...an average house in lets say Fresh Meadows (semi attached is 400+k...whereas in lets say Springfield, you have a nice detached..point being..it's not that expensive (as it could be) given our proximity to NYC is the same.

NJ is the most densely populated state...that should be good for RE values as well.
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Old 04-20-2008, 01:50 AM
 
Location: Vermont
5,439 posts, read 16,863,723 times
Reputation: 2651
SF bay area taxes are lower than NJ?
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Old 04-20-2008, 03:26 AM
 
196 posts, read 768,153 times
Reputation: 101
Know nothing about Union county but Good Luck whichever place you decide on.
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Old 04-20-2008, 05:23 AM
 
Location: NJ
23,867 posts, read 33,568,716 times
Reputation: 30769
Quote:
Originally Posted by NJGUIDO View Post
How ya doing? Listen, I have considered purchasing my first home, probably in Central Jersey(Union County) and I was wondering if this may be a sound investment or not.

I have compared the market in Central NJ to SF Bay Area and it seems like over 30 years, the difference in property taxes between NJ and CA can be in the neighborhood of 100K. So, we are talking about an additional 100K given away to the government if you choose to live in NJ vs living in CA.

In terms of appreciation, SF appreciates more historically but NJ is not far behind. Anyways, my question, how would you justify buying in NJ? Give me some logical argument, I do not want to hear any BS like "NJ is the best place on Earth..so..that is why I pay 7 grand in property tax".
If you've heard of Maximum PC Magazine, one of the writers left last year because he couldn't make enough to live in SF. He said everything was more expensive. I've heard this from others as well.

I would do a lot of research before making a move like this. I just did a realtor.com search, wow. Cheapest house is a 2 bed 1 bath for $269,9k

Quote:
Originally Posted by joshnorem
Well, that's right. I'm leaving MaxPC. After living in the bay area most of my professional life, I"m looking to move out of it into an area where I can actually afford a house. Even apartments here are crazy expensive.

=================================================
The bottom line is, though I love the mag and the readers, I cannot afford to live in the bay area. I'm 32 and want to settle down. Get a wife, hedgehog, have my cats and maybe get a daschund, and most importantly, buy a house. That is simply not possible given my salary in the bay area, so I decided to just take action and move.
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