Home Buying in 10036>Question Details

Airahcaz, Home Owner in Glen Rock, NJ

421A Question

Asked by Airahcaz, Glen Rock, NJ Wed May 21, 2008

Can someone help explain this that I've received from the broker, if 10 years from now.

"The taxes increase 20% every two years.
Today - $87,00, 10yr - $703.87"



The calculations of $87 * 20% * 5 does not come close to the 10 yr figure.

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Answers

3
Actually it is not. I've been told it increases 20% of the ending tax price (or the ending tax price minus year 1 tax) that it goes up, not the original tax at year 1 increased by 20%.
1 vote Thank Flag Link Wed May 21, 2008
Yes it's true all the above ,but you have to remember that the 10th year estmeted tax is not true ,every year there is a tax increase on property and the city assets the building .you have to take that in to calculation .
If the builder tell you that the tax in 10 years is $703 I will not agree with him .
For sure it will be higher,one the building is up the city will assets it again .they give you the tax on the empty lot, and do you remember the transfer tax you paid ?
0 votes Thank Flag Link Fri Jan 6, 2012
Airahcaz is correct, it is a 20% escalation based off the final taxes.
0 votes Thank Flag Link Thu May 22, 2008
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