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(My Central Jersey)   New Jersey mayor selling his house because he can't afford his own town's property taxes   (mycentraljersey.com) divider line 60
    More: Ironic, New Jersey, property taxes, college town, Jersey Shore, jersey, mayors, McCullough, selling  
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4899 clicks; posted to Main » on 21 Aug 2013 at 12:49 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-08-21 03:58:11 PM

farkmedown: redmid17: FrancoFile: Don't cry for me, Egg Harbor.

He's a victim of his own success.  House went from $350k to $1.1M in 20 years.  Boo-farking-hoo.  Downsize, get a reverse mortgage, or move to Florida.

You're a quick one. If only he had followed your advice....

FTA:  McCullough says he hopes to find another home in the township. But if he doesn't, the couple purchased a $150,000 waterfront condominium in Florida, where the property taxes are $2,569.

$2569's still too high for a basic home. But, then, so is having to pay $150K.



Property taxes are always a percentage of home value. Taxes aren't that high if you don't live on the most highly desired piece of land wherever you go. They would pay a lot less in their current city if they downgraded to a $150k place too.
 
2013-08-21 04:18:13 PM
That seems pretty crazy. $31k on a $1.1M valuation is 2.8%. I pay 1.2% on my home in a small town outside of Seattle.
 
2013-08-21 04:39:50 PM
My parents' house in Ohio has about the same property value as my house in Massachusetts, and yet they pay over double we do in property taxes, in addition to sales, state, and local taxes.  And people call MY state Taxachusetts....
 
2013-08-21 05:33:26 PM
The county, municipality and school board all submit their budget to the tax assessor. The tax assessor divides the budgets between the owned non exempt properties in the county and determines the property tax.

The school board budget is veto proof.

80 to 90 cents on the dollar from property taxes goes to the school board.

The mayor has no control over the property taxes because their budget along with the counties only amount to the leftover 10 to 20 cents left of that dollar.

I was paying 16k in property tax on a 1500 square foot house on less than a half acre 20 years or so ago in NJ.

NJ also re-assessed property value during the real estate boom and have not come around to re-reassess the properties after the real estate bust, so people are paying taxes on homes that will never sell for what they have been assessed for.
 
2013-08-21 05:36:38 PM

robbiex0r: Lucksbane: Thunderpipes: Can't believe farkers think 31k property taxes on 1.1 million is fine, because of the evil rich.....

Jesus!  $31K on $1.1M?  Do the trashmen personally come in and empty all the cans around the house for you?  What are you getting for that?  I live in Orange County, CA (arguably one of the more expensive counties in the country to live) and my property taxes on a house of that value would be about $12K.

You get to live on the waterfront. Last I heard they weren't building anymore waterfronts.


No but we get to subsidize rebuilding his million dollar home when a hurricaine drags it into the bay.
 
2013-08-21 06:50:54 PM

Jument: That seems pretty crazy. $31k on a $1.1M valuation is 2.8%. I pay 1.2% on my home in a small town outside of Seattle.


When I lived in Vermont my property taxes were above 3% so I can believe 2.8%
 
2013-08-21 08:10:26 PM

gar1013: Math, how does it work?

If you compound $350k over 20 year, you have an annual growth rate of just under 5.75%. Compare that to annualized growth rates over a similar period for the DJIA (7.1%), the S&P500 (6.1%) and the NASDAQ (7.93%). The result is that waterfront realestate in an affluent community lags these other benchmarks....

BUT WAIT!!!!

If you bought and held a basket of any of the above, you'd only get hit for taxes when you received dividends or when you actually sold.

What about the property? Well, he's paying about 2.8% of the property valuation PER YEAR in taxes. So that annual growth rate of 5.75% is actually a bit of an illusion. If you subtract out the value of the property taxes he's paying per year (assuming a constant tax rate), the compound annual growth rate is more like 3.67%. And that's before we incorporate any assumptions regarding inflation.

It's also before we consider the financing structure utilized as well. The point being is that your comparison is about as valid as someone screaming "this is an outrage" that Coca Cola doesn't cost a nickle anymore.


FrancoFile: Factor in the amount of rent he'd be paying if he put that $300k into an alternate investment and lived in a rental house with equivalent space & amenities. As I said, cry me a river.


Hello?

Is this still on?

Are you going to re-do your math taking into account the use he got out of the property vs. investing a lump sum in a bond or S&P 500 fund?

Hello?
 
2013-08-22 10:25:28 AM

Giltric: I was paying 16k in property tax on a 1500 square foot house on less than a half acre 20 years or so ago in NJ.


You meant $1600 right? 16k is more than the mortgage on most 1500 sq foot homes. If so, that seems criminal.
 
2013-08-22 11:29:48 AM

MyRandomName: FrancoFile: Don't cry for me, Egg Harbor.

He's a victim of his own success.  House went from $350k to $1.1M in 20 years.  Boo-farking-hoo.  Downsize, get a reverse mortgage, or move to Florida.

So you are the one person who cheers when the elderly woman who has lived in their house for 50 years has to leave because she cant pay taxes. She should just downsize. fark her.


He's not alone.  Overly emotional attachment to a physical piece of property is not an excuse when taxes are due.  When my income stream changes (as in goes down because I retired) you better believe I'm going to downsize if I have to.  If you want an $1M+ house in NJ, you better recognize you aren't going to avoid needing a cashflow of $20k-$35k/year depending on the town you live in for taxes.  He can sell this place, move 5 miles and buy another place for $400k.  And he can even roll that capital gain tax free into a retirement account.  He gets a molecular scale violin.
 
2013-08-22 09:06:11 PM

Pangea: Giltric: I was paying 16k in property tax on a 1500 square foot house on less than a half acre 20 years or so ago in NJ.

You meant $1600 right? 16k is more than the mortgage on most 1500 sq foot homes. If so, that seems criminal.


Old stone house built in the late 1700s in a very prestigious area, great school system, no crime aside from the politicians....

It last sold for 1.6m 2 years ago according to Zillow and the yearly property taxes were 44k.

I'm paying 30k a year now in property taxes in PA....on a 400 acre slice of heaven.


/happiness is a 1000 yard perimeter.
 
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