Home Buying in 07067>Question Details

A Gandhi, Both Buyer and Seller in 08820

If a home iin Colonia now has annual RE taxes of some $24,000, and based on an estimated 5%

Asked by A Gandhi, 08820 Sat Jun 14, 2008

increase each year, will have RE taxes exceeding $36,000 by say year 2018. Will that high RE tax base be a major impediment in the value of this house 10 years down the road?
Joe

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Taxes in New Jersey communities are based on the "assessed value" of the home. That assessed value is multiplied by that years' tax rate to arrive at the annual taxes to be paid. The assessed value does not change when a home is sold. It only changes if there is a total re-assessment of all properties in the town. When the municipal budget is approved each year, a tax rate for the year, expressed as a rate per $100 of assessed value is determined. That means that all residential taxes go up proportionately.
So if the home you own today has taxes of $24,000 per year (which as a resident of Colonia tells me that the home must be a very expensive one), then the future taxes should present no more of an impediment to selling than they would today, all other things being equal. By the way, I think that a 5% increase per year is a bit on the high side.

I hope that this helps.
Larry Mraz, Prudential New Jersey Properties 732-715-5849 (cell)
0 votes Thank Flag Link Wed Aug 5, 2009
What do you have a new multi-million dollar home on over an acre in the Estates Section near New Dover Road? You MUST to have taxes like that, if not I'd appeal your taxes to get them reduced...

Note: If $24,000 taxes don't bother you now, do you think $36,000 will 10 years from now?
In ranges like this the people who "can afford it" and want bad enough, will buy regardless...

Good Luck...

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0 votes Thank Flag Link Mon Jun 16, 2008
It must be a fabulous house, property, or both! Taxes that are that high are an impediment only if the taxes of comparable properties are substantially lower. 10 years down the road properties in the same price range will also have the higher taxes so unless this higher range buyer bracket decides that they are willing to accept less in a house the increase should be relative. It will depend upon the pricing of the home more than the taxes because if the taxes are substantially higher than the other comparable properties price should reflect a lower asking price to compete with them.
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0 votes Thank Flag Link Sat Jun 14, 2008
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