NY Property Tax

**ukikkgr** · 01-08-2008, 07:10 AM

This thread isn't a rant as much as it is complete, utter disillusionment. My wife and I in the midst of buying our first house and I'm feeling a little down by the entire process. We have no kids, however my mother in-law has MS. She can no longer live on her own and we had to make a decision to move her in or put her in a nursing home. We choose the former. We're both mid 30's, married three years and have been renting at $1500. Our combined annual income is $145K and we have very little debt. We have about $12K saved as a downpayment.

Our DTI on a $375 mortgage is 38% We've been qualified and been pre-approved for a mortgage for $415K at 6.7%. We're looking at houses no higher than $395K. However the town (where my mother-in-law lives)... and all the surround towns, no make that the surrounding county has suffocating taxes. We've found our dream house... asking price is $399K. The mortgage we qualified for is more than within our budget... the taxes however are not. $11,200 per year. I'm sick. Basically a $1000 per month added to my $2500 mortgage payment. Looking into the property the Fair mkt values was assessed at $525K. In three years not a single home on that stree has sold more than $405K.

I don't understand, nor do I comprehend how anyone can afford to buy in parts of NY where taxes make up more than 1/3 of the mortgage payment. Even with a meager STAR deduction it puts our monthly payment to what I would be paying for a $530K home. My parents are looking to move to Tennessee. We don't have family there.... we don't have friends there. My parents paid off their house three years ago. Yet the are still left with a $7200 tax bill (on a $300K house... one of those outdated bi-levels.). Property tax in Tenn on a 2500 sq ft home new construction with 1 acre... $900 per year.

I'm willing to lower my budget and expections... I can look for houses in the $300K range... most of which in this area excludes new construction. Mostly homes that are 30 years old, shoebox bi-levels with outdated kitchens. Possibly a new roof and maybe a new furnace. I'd rather call it a day and rent a condo. Why is buying a house such a great investment when I stand to spend nearly 10% of my gross income on property tax?

**REbuyersgroup** · 01-08-2008, 05:43 PM

Move out of NY. That's what I did.

Property Taxes are out of control, and so is the State Government. Every year when I filed my taxes, I always got money back from the feds, and ALWAYS had to Pay "NYS".

I owned a corporation in NY that was a nightmare to dissolve. Once you file for a corporation, they will never let you leave! There will always be some stupid reason to pay a FEE. And when you think you have finally paid every FEE imaginable, sure enough here comes another FEE, Late charge on a FEE or something like that.

I gave up! left, moved to Florida and still get mail from NYS asking for money! My wife told them I died and not to send anymore mail.

**carrot** · 01-09-2008, 05:56 AM

I moved down to FL from NJ 20 years ago and I thought things were costing alot back then.

My son is building a house 300,000 in FL. Monthly payment around 2100 and adding taxes and insurance up to 3000 a month for a 4 bed/3 bath home. With a smaller home would be less maybe FL is a good idea.

Have you ever thought of relocating to Colorado. My sister has MS also and they have a great MS Care Center in Denver and as you know the cool weather is best for them. Just a thought!

Let us know where you end up! I do have to say that even though we paid high taxes in NJ that we had good school systems and programs for the elderly/meds. I think the schools down here are not what I grew up with but luckey for me my son was an over achiever so he fared well.

**Macye Kirkpatrick** · 01-15-2008, 06:18 AM

You sound like what everyone around here complains about taxes. Except for here we want portability in our taxes. But our main thing is the cost of home insurance. Their have been so many hikes in cost and companies that pull out. Once your dropped your limited to who will take you. This is all a result of 2004 Hurricanes. Oh yeah I live in Florida. I empathize with your situation cost of taxes and insurances here have gone crazy.

**gjtrafl** · 01-15-2008, 12:19 PM

I live in Wilmington, NC and this is where so many of the NYers are moving to for that very reason. Combine the tax bill with the fuel bill to heat the home in the winter and you have some tough bills facing you.

Typically my NY clients ask about our taxes and they fall on the floor laughing. Most say that they pay more per quarter than what we pay in a year.

**Macye Kirkpatrick** · 01-16-2008, 04:36 AM

That is so funny because I tried to convince my partents that we should all move there about 6 months ago. For all the same reasons. They loved NC and when my dad was in the Marines they were stationed at Camp LeJune. I saw some really affordable housing and as you stated that I was really serious about going. The weather is mild and not much use for heat many days and a/c somewhat optional although I have become accustom to it. NC has some many options mountain, coastal areas. Now you got me thinking about it again. We were originally from the NE also.
We laugh where we live know alot of people from NE and one neighbor from town next to ours so when we each go North we take things to each others families.

**gjtrafl** · 01-16-2008, 05:08 AM

I do think we have a lot to offer. Everyone from the NE always asks for two things... 1. They want a fireplace and 2. They want a gas stove.

The fireplaces around here are more for show than for heat... More cosmetic than functional.

Unfortunately since we don't need too much heat, very few areas provide natural gas. So very few folks have gas stoves and those that do only have propane (which I understand is just not as hot and not the same).

I think another reason so many come is that it's not too far for the trips back home to visit family and friends (Florida is such a tough drive).

Typically what happens is one family member will move here and then the others tend to follow a year or two down the line. One sale can become 2 or 3. It's great!

**DBQ** · 01-16-2008, 08:51 AM

I agree... head out of NY! The property tax laws there are a killer.

Otherwise I'm not sure, I'm no realtor but i've heard plenty about NY being the worst place and the most ridiculous state government when it comes to these issues.

**krolfe** · 01-16-2008, 04:17 PM

That's crazy! Out here in Las Vegas we pay about 1% of the value per year. Ex. $300,000 house would be about $3,000 per year sometimes lower. Good Luck with that dilema.