Values Down, Taxes Up
The market value of all property around the city is forecast to decline between 2009 and 2010 but property taxes that the city collects will rise 10 percent, according to the Independent Budget Office. The current issue of the Gotham Gazette examines why that’s the case. The main reason is that increased market values are…
The market value of all property around the city is forecast to decline between 2009 and 2010 but property taxes that the city collects will rise 10 percent, according to the Independent Budget Office. The current issue of the Gotham Gazette examines why that’s the case. The main reason is that increased market values are phased in over a five-year period; each annual increase is also capped, so properties in areas that have experienced rapid run-ups this decade can take years to get caught up. The more interesting part of the article is the discussion of how the property tax system continues to favor house owners over owners of commercial buildings and co-ops and condos. The most glaring example is that one-, two- and three-family houses are assessed at 6 percent of their market value versus 45 percent of market value for the other property types. Can you imagine what would happen to the value of your typical house if its properties went up seven- or eight-fold?
Why Property Taxes Rise While Real Estate Falls [Gotham Gazette]
You want to own a “million” dollar home and you don’t want to pay your taxes? You must belong to nobility. Pay your taxes and don’t be cheap.
Ha ha DIBS. I’m no masochist. I’m just saying if *everyone* pitched in more (you sound like you make a lot more money than I do), maybe some of our public services could be improved (schools being a key one that I’m concerned with). I’m not talking huge increases, but small bits, if everyone pulls their oar, can make a real difference. NYC RE taxes are, in my opinion, quite shockingly low.
Miss Muffett….I’ll send you my tax bill and you can pay mine. Thanks.
When we owned our previous place (condo), I always felt the taxes were actually too *low*. Not that I enjoy paying taxes, but I have school-age kids and I always felt that it would be better if everyone kicked in a bit more for public services. The tax system indeed seems very messed up….
Bushwick peaked in June 2006. Bushwick is in New York City.
New York City proper peaked after, mopar. I’m talking Brooklyn and Manhattan as opposed to White Plains, Paramus or Stamford, cities included in that NY Metro index. You have to agree with me there.
All I’m saying, and it’s all over the NY Times RE section, is that NYC lags the national average and, as seen above, the Metro-wide average.
***Bid half off peak comps***
Chicken, I skimmed some of this thread, but I have to mention, here in the US we don’t pay a tax for HAVING A TELEVISION.
Yeah, I know, you have universal health care but here in America, tv is free. (At least in theory.)
BHO, when you first posted about the Case Schiller index, you said June 2006 was the peak for the whole country — including California, Florida, and New York. Now you’re saying New York peaked after?
Florida, California, and Nevada are down more than other parts of the country. That doesn’t mean other parts of the country are “lagging” them.
“BHO, I don’t buy the argument that New York is lagging the rest of the country.”
Why not? Our prices didn’t hyperinflate until after California’s, Arizona’s, Vegas’ and Florida’s did. The peddling of all these hot-potato loans to Main St lead the home price boom. The bonuses and profits that benefited NYC and its home prices lagged. First, the “experts” thought we were immune. Only recently has that been called to question and answered with a ‘not anymore’. The chickens are home to roost. Without a quick Wall St resurrection, we’re done.
To address your points, prime areas elsewhere are significantly down, let alone subprime areas which are down way more than -50% in places like Florida and California (fughettaboutit!). The general economy is depressing itself. Interest rates can’t go much lower and if they spike, it would be an insult to injury for home prices.
It’s not that you can’t PREDICT the future. It’s that you can’t TELL the future. But good financial planning means formulating your OWN opinion (not that of Barbara Corcoran or David Lereah) and taking a position, something that most screwed buyers simply did not do.
***Bid half off peak comps***