Dear Kang, people who move to New Jersey from other areas tend to consider the quality of life as well the tax burden in their search. It's true that for the most part, property taxes are notoriously higher in NJ than surrounding states, but there are factors such as quality schools, easier commute, and convenience to shopping and other attractions. Typically a town with higher tax burden may be spending a good portion of that in education, so it's worth it for families with children. Some towns with lower taxes may have decent schools too. You need to figure out what is important to you in evaluating towns and neighborhoods to live in.
That said, I know a few friends who also live in River Edge are feeling the burden of high property tax. If given a choice now they will probably not buy in River Edge. Or they may choose to rent if they need to be flexible in their housing. As a real estate investor, high property tax will be a deterrent because your cash flow will be next to nothing after paying mortgage, insurance, maintenance and taxes. And you can't jus hike the rent above the market rate just because you got a bigger tax bill this year.
High taxes absolutely affects house values. Just take Paramus and River Edge as an example since you're in Paramus. Even though the two towns are next to each other, the same house will go for higher price in Paramus than in River Edge. That's a fact. How much quality of life are you getting out of that tax you pay? You have to decide if it's worth it. For some people it is, and they will choose one town over another.
If you wish to discuss this further, or if you have other questions, feel free to contact me. Thanks!... more