The recent presidential election results appear to have kick-started a new bull-run on investments, including real estate. How can NY property owners offset the coming rise in property taxes?
Since the election stocks have hit new record highs, online holiday shopping has hit a new record, and interest in investing in more real estate appears to have rebounded. Along with more action in the real estate market comes higher property values, and in turn higher property taxes. So how can property owners in New York minimize the impact of several years of rising tax assessments?
Challenge Your Property Tax Bill
A significant percentage of property tax bills are already over-inflated. That means many thousands, and even millions of New York property owners who are already paying more than they owe. Get those tax assessments and bills fixed now, and you may still enjoy lower taxes going forward.
For those buying a new property – buy smart. Be alert to where there is a lot of activity and new development, and where property taxes may rise the fastest. Contrast that with areas which are more popular with long term owners and where tax assessments may be more stable.
Make Smarter Property Improvements
In addition to tax rates and property sales, property improvements have the power to impact assessments and bills. Adding square footage, a pool, or more bedrooms may result in a higher tax bill. Some may wish to focus on cosmetics and interior design items which won’t trigger this.
If you’ve been planning to downsize this might be a good time. It could be time to sell that bigger family home and choose a smaller one or a condo in a less expensive corner of Long Island. This helps as your tax bill is directly related to your property value. Making this move now before interest rates go up and higher property taxes turn off potential buyers could be a smart financial move.
Invest in More Real Estate
It may not be possible to increase your earned income as quickly as taxes rise. However, you can invest in more real estate and increase your passive income from rents and equity growth to offset, and likely even exceed any rise in tax liability.