6 ms·

FWIW, those numbers are off because of escrow and taxes. 1.22MM house means AT LEAST 30k in property taxes a year, which mean's they'll end up at >~7.5k a payme

FWIW, those numbers are off because of escrow and taxes. 1.22MM house means AT LEAST 30k in property taxes a year, which mean's they'll end up at >~7.5k a payment, which means they'll need to buy a smaller house.

HarHarVeryFunny 4y ago
Not where I live in NJ. 1.2M house is going to be < 20K taxes.
- macNchz 4y ago
  Yeah this is very market dependent, especially with regard to whether there are state/local income taxes or the government depends mostly on property taxes. Here in NYC I’d expect to pay $10k or less in annual taxes for a property in that price range, however there are city and state income taxes plus apartment building building common charges. It’s hard to compare this stuff apples to apples, but the one constant regardless of locality is that higher rates significantly reduce buying power for people relying on mortgages.
- googlryas 4y ago
  Where do you live in NJ? The average effective property tax rate is 2.470% of the home value. Property taxes would be ~$38k in Gloucester county(across the river from Philly).
  - HarHarVeryFunny 4y ago
    I'm in Ridgewood - Bergen county.
    - exhilaration 4y ago
      Is that the town-assessed value? This [1] shows 2.708% so on $1.2M that would be $32k in taxes, I think something is special about your situation? https://www.state.nj.us/treasury/taxation/pdf/lpt/gtr/2021taxrates.pdf https://www.state.nj.us/treasury/taxation/pdf/lpt/gtr/2021ta...
- mancerayder 4y ago
  NJ and NY both have some pretty wide ranges of property taxes from town to town, county to county, not just because the percentages might be a bit different, but because their valuation systems are wildly confusing and inconsistent.
nixgeek 4y ago
Property taxes in WA wouldn’t be much more than $13k if the home had an assessed value of $1.22M. It also isn’t uncommon to see a big difference between the sale price and assessed value. One datapoint would be a $4M purchase that is only taxed at $2.2M the first year after the deal closed. At least in King County, the valuations do seem to “catch up more quickly” after a sale, so at +1y it might be $2.8M, at +2y it might be $3.3M, but to be paying >$30k here in taxes you’d need a >$3M assessed value home.
- lotsofpulp 4y ago
  Seattle area property tax is usually around 0.75% of market value. Although, I would guess some are near or above 1% due to very recent declines in market value.
  - __derek__ 4y ago
    That seems low. My taxes were $9.40 per $1000 of assessed value in 2022. From searching around, I see an average 0.88% for King County (and apparently Pierce and Snohomish are higher).[1] [1]: https://www.tax-rates.org/washington/king_county_property_tax https://www.tax-rates.org/washington/king_county_property_ta...
    - lotsofpulp 4y ago
      Yes, last time I checked, the numbers were still based on outlier price increases in 2020 and 2021. It may already be at 1% or even higher for many people.
turtlebits 4y ago
Property taxes vary all over the country. They also can vary wildly if you have an older house vs new construction. In Seattle, where the housing market is considered expensive, a 1.2m house only pays $7k in property taxes
- __derek__ 4y ago
  > In Seattle, where the housing market is considered expensive, a 1.2m house only pays $7k in property taxes Only if it has (a) an exemption or (b) an assessment well below market value. A typical house with a $1.2 million assessment will have paid over $10k in property taxes in 2022.
  - turtlebits 4y ago
    All properties assess below market value, even new construction. A 1.2m house will generally assess for around 800k.
    - __derek__ 4y ago
      That would be option (b) in my comment. Washington State law requires assessed values to be 100% of "true and fair value"[1] despite the fact that they tend to lag market value. [1]: https://apps.leg.wa.gov/WAC/default.aspx?cite=458-07-030 https://apps.leg.wa.gov/WAC/default.aspx?cite=458-07-030
sokoloff 4y ago
Varies widely by location. My house is around 2x that and my annual property taxes are under $15K/yr (Cambridge, MA).

HarHarVeryFunny 4y ago

Not where I live in NJ. 1.2M house is going to be < 20K taxes.

macNchz 4y ago
Yeah this is very market dependent, especially with regard to whether there are state/local income taxes or the government depends mostly on property taxes. Here in NYC I’d expect to pay $10k or less in annual taxes for a property in that price range, however there are city and state income taxes plus apartment building building common charges. It’s hard to compare this stuff apples to apples, but the one constant regardless of locality is that higher rates significantly reduce buying power for people relying on mortgages.
googlryas 4y ago
Where do you live in NJ? The average effective property tax rate is 2.470% of the home value. Property taxes would be ~$38k in Gloucester county(across the river from Philly).
- HarHarVeryFunny 4y ago
  I'm in Ridgewood - Bergen county.
  - exhilaration 4y ago
    Is that the town-assessed value? This [1] shows 2.708% so on $1.2M that would be $32k in taxes, I think something is special about your situation? https://www.state.nj.us/treasury/taxation/pdf/lpt/gtr/2021taxrates.pdf https://www.state.nj.us/treasury/taxation/pdf/lpt/gtr/2021ta...
mancerayder 4y ago
NJ and NY both have some pretty wide ranges of property taxes from town to town, county to county, not just because the percentages might be a bit different, but because their valuation systems are wildly confusing and inconsistent.

nixgeek 4y ago

Property taxes in WA wouldn’t be much more than $13k if the home had an assessed value of $1.22M. It also isn’t uncommon to see a big difference between the sale price and assessed value. One datapoint would be a $4M purchase that is only taxed at $2.2M the first year after the deal closed. At least in King County, the valuations do seem to “catch up more quickly” after a sale, so at +1y it might be $2.8M, at +2y it might be $3.3M, but to be paying >$30k here in taxes you’d need a >$3M assessed value home.

lotsofpulp 4y ago
Seattle area property tax is usually around 0.75% of market value. Although, I would guess some are near or above 1% due to very recent declines in market value.
- __derek__ 4y ago
  That seems low. My taxes were $9.40 per $1000 of assessed value in 2022. From searching around, I see an average 0.88% for King County (and apparently Pierce and Snohomish are higher).[1] [1]: https://www.tax-rates.org/washington/king_county_property_tax https://www.tax-rates.org/washington/king_county_property_ta...
  - lotsofpulp 4y ago
    Yes, last time I checked, the numbers were still based on outlier price increases in 2020 and 2021. It may already be at 1% or even higher for many people.

turtlebits 4y ago

Property taxes vary all over the country. They also can vary wildly if you have an older house vs new construction. In Seattle, where the housing market is considered expensive, a 1.2m house only pays $7k in property taxes

__derek__ 4y ago
> In Seattle, where the housing market is considered expensive, a 1.2m house only pays $7k in property taxes Only if it has (a) an exemption or (b) an assessment well below market value. A typical house with a $1.2 million assessment will have paid over $10k in property taxes in 2022.
- turtlebits 4y ago
  All properties assess below market value, even new construction. A 1.2m house will generally assess for around 800k.
  - __derek__ 4y ago
    That would be option (b) in my comment. Washington State law requires assessed values to be 100% of "true and fair value"[1] despite the fact that they tend to lag market value. [1]: https://apps.leg.wa.gov/WAC/default.aspx?cite=458-07-030 https://apps.leg.wa.gov/WAC/default.aspx?cite=458-07-030

sokoloff 4y ago

Varies widely by location. My house is around 2x that and my annual property taxes are under $15K/yr (Cambridge, MA).