Home Buying in 10522>Question Details

mss7, Home Buyer in Dobbs Ferry, NY

The taxes in Dobbs Ferry make me question the future value of owning a home there. No money left to pay a mortgage.

Asked by mss7, Dobbs Ferry, NY Tue Sep 24, 2013

If the rental value of a luxury home in Dobbs Ferry is 8k per month, but the taxes are 5k per month, ownership looks like a bad long term investment. The taxes will continue to rise and will likely make these homes decrease in value in the future. Higher end homes are currently languishing on the market. When I do the math, buying does not make financial sense, even though I am financially well off.

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You can blame the school budgets for the bulk of the tax increases. We have been seeing somewhat of a turnaround in most areas as of last year. The taxes in all of the Rivertowns are very high, ev en on 500k homes. What helps increase value is not only that areas undrlying economy but what has sold. As home start to sell for more the area recovers but yes, your taxes will always go up. That doesn't mean the area will lose it's value though..

Christopher Pagli
Accredited Buyer Representative
Licensed Associate Broker
William Raveis Legends Realty Group
914 406 9023
0 votes Thank Flag Link Tue Sep 24, 2013
It is true that proximity to NYC and good schools make living in Dobbs Ferry desirable. We are very interested in the location due to the convenience. At the same time, typical property taxes elsewhere around the country run in the range of 1% of market value. Dobbs Ferry has homes with taxes in the range of 3 to 4% of market value. At that point, the taxes start to make the homes much less desirable to own. In the 1.5 to 2M price range, a Dobbs Ferry home has taxes in the range of 60-70k per year. To me, that begins to feel outrageous. Even though I can afford that now, what if I want to stay in my home when I am ready to retire? And what if taxes keep increasing like they have over the past decade? I would be facing a tax bill of 100k per year. It defies any sense of logic to pay that kind of money for property taxes.
Flag Wed Sep 25, 2013
Hi: There are some towns that have a larger tax base & therefore lower taxes per square foot. For example, Armonk has IBM, Swiss Re, & MBIA headquarters & also gets money from NYC for the Reservoir. Dobbs Ferry, on the other hand, has no major corporations & also has 2 levels of taxation, one for the village of Dobbs Ferry & the second for the Town of Greenburgh, which has a huge gov't. You may be correct in your analysis for Dobbs Ferry, but maybe you can find a town that better suits your needs. I look forward to speaking with you. Sincerely, Michael F. Levy, Principal Broker, Grand Lux Realty, 914-273-9688, http://www.GrandLuxRealty.com.
0 votes Thank Flag Link Tue Sep 24, 2013
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