Re:How Property Taxes Shape Our Cities
by nugget on Tuesday July 03, 2018 @12:52PM
(#17451724)
Keep in mind that this property tax got relatively much more expensive in 2018 thanks to the elimination of SALT deductions in Federal tax reform. Assuming a top-earner who itemized, they were able to deduct about 50% of the tax which would bring it down to $17,850. Under new tax policy, they owe the full $35,700. Effectively a 100% property tax increase year-over-year. I'm watching the property markets in New Jersey particularly to see whether there is an impact on prices, but so far, it hasn't really materialized.
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What I noticed is that houses $1 million-$1.5 million in range, their prices have stagnated or declined over the years in NJ, especially in areas with high property tax. Some owners are taking a deep bath. Like this one. Purchased for $1,315 mil in 2005 (market peak). Listed for $899k.
http://www.njmls.com/listings/index.cfm?action=dsp.info&mlsn...
This house is quite interesting too.
http://www.njmls.com/listings/index.cfm?action=dsp.info&mlsn...
Sold for $1.5mil in 2014. Listed for $1.15mil now. It was sold for $860,000 in 1995 when real estate was very cheap.
That house is in a very nice part of the town too. (Allendale is all nice to begin with)
Re:How Property Taxes Shape Our Cities
by lotsofpulp on Tuesday July 03, 2018 @06:35PM
(#17454135)
From what I've seen, most NJ home prices have stagnated or gone down unless it's located next to convenient public transit to NYC. People are pricing in the severely underfunded NJ government, which owes billions of dollars, so more tax increases are inevitable with more cuts to services.
Many other metro areas and suburbs have seen much higher appreciation over the last decade, such as Seattle, Austin, Portland, Denver, Nashville, DC, SF, LA, SD etc. NJ doesn’t have a major city and it’s inconvenient to travel to NYC or Philly.
From a financial standpoint, I’d avoid NJ/CT/IL just due to their value having been maxed out in my opinion.