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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 21
    More: Ironic, New Jersey, property taxes, college town, Jersey Shore, jersey, mayors, McCullough, selling  
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4902 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 12:52:26 PM  
4 votes:
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.
2013-08-21 02:07:56 PM  
2 votes:

gar1013: 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.

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.

You want to know what WOULD cause him to make out like a bandit? Lower property tax rates.

NJ's property tax rates are an outrageous burden because their income tax base doesn't really reflect high wage earners.  Every single person who commutes from NJ into NYC to work pays NY state income taxes, which typically wipe out any income tax liability that you face in NJ.  Really and truly, NY state is the villian, because they get to collect full state income tax from a sizeable amount of people who don't consume their social services.


Housing is weird, because it is a hybrid of a useable capital item and an pure investment.

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.
2013-08-21 01:06:26 PM  
2 votes:

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.


She should pass the family home on to the next generation - her son or daughter - who by this point is likely needing a home to raise their own family in, and is at a point in their career where they can afford the upkeep (and reap the benefits of not having a mortgage!).  Then, she'll move into a smaller granny flat, either on the same property or nearby, so as to provide cheap child-care to her grandkids (on occasion, not as a default) which will allow her to pass on the family history and values to the next generation, while allowing her to maintain an independent lifestyle.

Othewise, fark grandma for holding onto a house she can't afford while her kids work themselves to the bone to maintain a lower standard of living.
2013-08-21 01:04:59 PM  
2 votes:

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.


How do you go from "not a lot of sympathy" to "fark you"???  Way to go with fallacy of the excluded middle there.  And reverse mortgage from a _reputable_ lender would let your hypothetical old lady stay in the house.

It irks me when people attempt to get publicity and sympathy for a faux-tragic situation that's totally normal and foreseeable.  The value of his house didn't triple overnight - in fact, as mayor he ought to know better than almost anyone what the real estate trends and the tax burdens in his town are.

The same deal with people who are soooo happy when an Ikea or an auto factory move to town, and then get pissed off when there's more traffic and they can't get a seat at their local diner.  What the fark did they think was going to happen?
2013-08-21 03:58:11 PM  
1 votes:

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 03:51:53 PM  
1 votes:

durbnpoisn: The system is indeed broken.

Most of our property taxes here in NJ are going to the schools.  That in itself is stupid considering the number of people that have no children in the schools.  But what makes matters even worse is having 15 superintendants in each district when there is only a need for one.  What makes matters even worse is that there are so many districts to begin with.

But what really riles me up is that the schools are cutting back on services they can't afford.  Like, sports programs, or bussing.
That second one REALLY pisses me off, because my son is starting high school this year.  Because the school is 2.3 miles away and not 2.5 miles away, he can't get bussing.

So this is what out property taxes are paying for.

System = broken and farked up


Living in a good school district does great things for your property value.  So while childless homeowners don't  directly benefit, they most definitely do so indirectly.  See how much your property value will plummet once your school district goes to shiat.  Living in a bubble, how does that work?

Other parts of your comment, I can sympathize with.
2013-08-21 03:29:36 PM  
1 votes:

Kraftwerk Orange: 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.

She should pass the family home on to the next generation - her son or daughter - who by this point is likely needing a home to raise their own family in, and is at a point in their career where they can afford the upkeep (and reap the benefits of not having a mortgage!).  Then, she'll move into a smaller granny flat, either on the same property or nearby, so as to provide cheap child-care to her grandkids (on occasion, not as a default) which will allow her to pass on the family history and values to the next generation, while allowing her to maintain an independent lifestyle.

Othewise, fark grandma for holding onto a house she can't afford while her kids work themselves to the bone to maintain a lower standard of living.


Well said.
2013-08-21 02:46:27 PM  
1 votes:

DMZ DEATH: I was talking with a coworker this morning about the ridiculous property taxes these days. It's sad seeing older people who have worked all their lives, and have paid off their homes then lose them because they can't afford to pay the property tax. It happens alot more often than most people think. There should be laws put in place where once a home is paid for, the taxes are greatly reduced and/or the rate frozen. My brother has a small house in Pawtucket RI that he bought dirt cheap. The taxes are so lopsided on the place. He pays what my parents do for their house that has a big yard in an upscale neighborhood in MA. The systems broken.


Sure, if you ALSO enact a law preventing said homeowner from giving pay hikes to teachers, cops, firefighters, and other city workers without raising taxes to pay for them....that's the source of most municipal finance woes.

People vote for stuff they can't afford, or think their kids or neighbors will pay for, but not them; it's a problem on both sides of the aisle.
2013-08-21 01:59:32 PM  
1 votes:

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


2.8% isn't absurd...
2013-08-21 01:57:03 PM  
1 votes:

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.
2013-08-21 01:40:07 PM  
1 votes:
So, when the value of my home increases the property tax increases too?
2013-08-21 01:27:25 PM  
1 votes:

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.


First of all : here's the original, and much better, article

Yes, fark her and her stubborn ways. She needs to let someone else live in that 4/5 bedroom house. Maybe her children? Maybe a relative? Why is she hogging all that space?

At the very least this mayor is guilty of bad planning. In 1985 he bought a parcel of land on the water front that was, as an empty lot, worth more than the average house price in his town TODAY. He then built a 4 story home on top of it. He clearly has been pushing his town to develop the area for second home owners, mostly because they buy bigger homes than average, and have a very small effect on local services.

It's also very very hard for me to feel any pity for anyone with more than one home.  Dude - you're 70. Retire and move to Florida.

Note : The Tax Assessment on the home in New Jersey is about 2.8% of value. The Florida condo is taxed at about 1.7% of value, but the real savings comes from the 87% drop in assessed value
2013-08-21 01:19:59 PM  
1 votes:
I don't give a shiat about this guy, but property taxes in NJ are way out of line. I could buy a reasonable place for what my sister's family pays in taxes.
2013-08-21 01:12:27 PM  
1 votes:

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.



When they are the Mayor, and the reason why this happened in the first place, yes, your damned right, fark him.

FROM HIS WEBPAGE: "Sonny is currently serving his 22nd year on the Township Committee. For 18 of those years he has been selected as mayor. The mayor is not elected but rather chosen by the five members of the committee, so Sonny's repeated selection shows the great respect the other committee members have for his leadership abilities. "
2013-08-21 01:09:50 PM  
1 votes:

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


Its easy to treat taxes as a hypothetical when you live in your parents basement.
2013-08-21 01:05:32 PM  
1 votes:
Can't believe farkers think 31k property taxes on 1.1 million is fine, because of the evil rich.....
2013-08-21 01:04:10 PM  
1 votes:
Good, fark that guy.

My taxes just went up 10% with the recent revaluation.

Surprised he can't afford it with all his kickbacks.
2013-08-21 01:03:08 PM  
1 votes:

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.


Well I thought that was the idea. Sell large house with five bedrooms to a couple raising kids then take the extra cash to buy a small apartment. Leaving 3/4 of the house price left over for a retirement.
2013-08-21 12:54:58 PM  
1 votes:

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.
2013-08-21 12:41:40 PM  
1 votes:

vpb: He and his wife bought land and built their home for $360,000 in 1985.

In 2013 dollars that would be about $783,000.  I'm guessing that this isn't a poor neighborhood.


bloximages.chicago2.vip.townnews.com
vpb [TotalFark]
2013-08-21 11:54:01 AM  
1 votes:
He and his wife bought land and built their home for $360,000 in 1985.

In 2013 dollars that would be about $783,000.  I'm guessing that this isn't a poor neighborhood.
 
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