Tuesday, December 04, 2007

Buying Based on Property Taxes

"The biggest disparity between New York and the rest of the country is the property tax."

That's what the front page of today's Democrat and Chronicle reported! No sh#%t!!! I talk to people all the time that are considering relocating to New York and once they get a peak at the property taxes, well, I need to bring out the smelling salts!

Case in point, last week I got a call from Costa Rico from a gentleman considering waterfront property in the Finger Lakes. He picked out two properties, similarly priced, located about a mile apart. One has annual property taxes of approximately $8799 and the other tax bill runs about $11,500. Interestingly, the house with the lower taxes has an asking price of $11,000 more than the other and from the questions that this buyer was asking, I got the feeling that he was leaning towards the more expensive house with lower taxes.

The house with the lower taxes was assessed for approximately $90,000 less than it's competitor. The reason, it has approximately 1800 sq feet of living space compared to 2500 in the other house. Both houses have similar lots and were close in age. So, while no one likes paying higher taxes, the larger house with the lower list price is probably the better deal.
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