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I am still kind of stunned that I'm seeing people paying 5.25% interest on a mortgage or even 8%. Why? That makes no sense at all. If you're paying that much in interest, you need to refinance like yesterday. And if you're credit is not good enough to get a better rate, then maybe you shouldn't have bought a house until that was fixed.
Refinancing in some states where there are state, county and town mortgage recording taxes going from say a 5% to a 3% doesn't always make sense - or some people don't have the money to cover the refinancing costs. In states where mortgage recording taxes are low or non-existent, its different. If you can get an assignment, its good, but not all lenders will.
Two apartments at $650 and the two bedroom should be about $1000 for a monthly total of $2300 which would cover the PITI even if your claim of an additional school tax is correct. In any part of NY I'm familiar with school taxes are collected as part of the property taxes and the city or town then distributes the share to the school, library or whatever. $12,500 total taxes sounds very high for an upstate area property. If there is a reason the landlord chooses to charge rents that don't cover his expenses that's his problem, not the tenant's.
All of upstate I know has separate taxing authorities: the town collects property taxes and the school district collects school taxes. Upstate cities I believe are different. The school district is part of the city and the city collects taxes for both.
$12,500 is not at all high for upstate property taxes. I paid $13,000 on a $360,000 house. I'm currently paying $8500 on a$300,000 house.
All of upstate I know has separate taxing authorities: the town collects property taxes and the school district collects school taxes. Upstate cities I believe are different. The school district is part of the city and the city collects taxes for both.
$12,500 is not at all high for upstate property taxes. I paid $13,000 on a $360,000 house. I'm currently paying $8500 on a$300,000 house.
it is called the tristate area which includes the upper and lower hudson valley . but to us nyc folk you ARE STILL UPSTATE .
to me anywhere past westchester is upstate .
wikipedia defines upstate as :
Upstate New York is the portion of the American state of New York lying north of New York City. The region includes most of the state of New York, excluding New York City and its environs, as well as Long Island, though the precise boundary is debated.
Last edited by mathjak107; 05-24-2017 at 01:41 PM..
it is called the tristate area which includes the upper and lower hudson valley . but to us nyc folk you ARE STILL UPSTATE .
to me anywhere past westchester is upstate .
wikipedia defines upstate as :
Upstate New York is the portion of the American state of New York lying north of New York City. The region includes most of the state of New York, excluding New York City and its environs, as well as Long Island, though the precise boundary is debated.
I live 50 miles from NYC. That's not upstate. End of story.
I would not move to a high tax state like ny for any reason. I just moved from ny and now I am tasting financial success for the first time. Living in Syracuse for the last 45 years and soooo glad I got the opportunity to leave that place in my rearview. High tax places like that suck all the value out of youe house and give it right to the government. Theres a thousand other reasons not to move there too. do so homework you'll see it makes no financial sense at all
ironically our company here in long island is saving the bacon of a company in syracuse who was laying 120 people off after failing. . they are putting the final touches on the deal . i believe they declared chapter 11 friday .
So...basically the answer is, of course...it depends.
I have an acquaintance who has been looking for a couple of years now for a house. I know...others have told her too...that the perfect house for her is among the several in a nearby city. Including their being an age she favors. But she does not want to pay the higher taxes on principle. Yet, there are no houses like what she wants in her current area...which is just a few miles from that city. And I do see that the taxes are a whooole lot higher there so it would be hard to overcome that objection.
I lived in a rental for a few months while having some work done on my house. Brand new. Water included in rent. Great deal. Nice place, nice amenities. But after we left we heard the builder discovered individual meters and every unit was separately metered. Water got very high. It would be a difficult decision to consider going back at any point.
So there are pluses and minuses for renting and for home ownership. Both can have expenses because of changes...raise in rent, water no long covered, noisey college students move next door, twins born to couple next door that cry a lot, someone moves in into drugs...can happen in the best places, barking dog, smelly cooking, etc.
For homeownership changes can be frustrating change of lenders and a mixup in payment not received, raise in HOA fees, still neighbor issues, house next door becomes a rental and then tenant issues, responsibility for continuous maintenance, etc.
So sometimes when it seems just about the money, just about the taxes....there can be something else involved. Emotions that say you want the house, the yard, the flowers and veggies that you grow, the larger size. Or the emotions that say...hey, I'm not ready for any more responsibility than I have now.
Sometimes it can be surprising what will turn the tide in a decision.
Place yourself in your house that you own and see how you feel about that.
If one path isn't really working that well (deciding based on that exhorbitant tax) , maybe try another path (deciding based on feeelings about a thing). If the feelings don't go with homeownership....hey, then that's off your plate right there.
Buying (not even factoring in interest and tax credits) -
357,000 home price
231,425 interest paid
28,080 insurance
79,837 PMI paid if I do not refi
180,000 taxes
-400,000 proceeds from sale (it's already worth nearly that)
TOTAL 477,219
Renting -
900,000 rent price with no raises in rent
28,080 renters insurance (assuming same price as homeowners)
TOTAL 928,080
Clearly, owning is the better option for me, since I am not considering moving any time soon, if at all.
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