Re: Jersey City mayor-elect orders end to citywide reval
Posted by bodhipooh on 2017/1/11 14:15:54
From my understanding of the reassessment, the city will provide a fair market value for the home, if it sells at 1.8 it's a pretty good indication that 1.8 is the FMV. If the taxes go to 2.0%(seems low but humor me) that would make the taxes 36k annually, or 3k a month. That represents an increase of $2,117 in monthly overhead, which corresponds to about $580k in mortgage at 3.625%, I wouldn't touch downtown JC until after this is over.
Exactly my take, and the main reason I am sitting out the market for another two years. If I was to plunk down 1.5 MM for a property, I want to know I am not going to get creamed in real estate property taxes for little to no benefit. At that price point, BK (and, NYC in general) starts to look very, very enticing. People point out that in NYC you would be on the hook for the city income tax, but even after factoring in the NYC income tax, the total tax burden (NYC income tax + property tax) would be lower than just the local property tax bill. Also, I really can't imagine the bump in DTJC property taxes not having some sort of effect on the real estate values.
Add to that is the fact that many Democrats across the state are getting behind 'fairness in school funding', which will likely end up with JC funding more than 17% of its school costs. Abbott won't go away soon, but expect some changes down the pike.
An excellent, and scary, observation. For all the bitching and moaning about property taxes in JC, if we end up with a tax rate below 2% after the reval, it is probably safe to assume that other NJ municipalities and counties will push to have JC shoulder more of the BOE budget. At 17%, we are getting a great deal and, given all the budget issues across the state, I am sure there will be a renewed effort to push JC (and, other Abbott districts that have seen an increase in the affluence of its residents) to pay a larger share of their school budgets.
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