The latest data shows it is far cheaper to buy a home on Long Island than rent, but how much you can save will rely greatly on property tax assessments.
So how much can NY home buyers save versus renting, and how can new homeowners and sellers benefit from challenging property tax bills?
According to the Suffolk and Nassau County real estate data sales of existing homes rose to their highest volume in 12 months. From the savings some are experiencing it is easy to see why demand is up.
According to Trulia owning a home on LI is 38% cheaper than renting, even when including mortgage payments, property taxes, insurance and maintenance.
Data from the US Census Bureau published by Newsday Long Island show that while LI is home to 3 of the most expensive zip codes in the nation, living here is far more affordable than most think. At least this is true for homeowners that refuse to stand for being overcharged on property taxes.
These 3 pricey zip codes are found in Albertson, Atlantic Beach and East Hampton, Long Island. Even here, in Atlantic Beach Long Island homeowners pay an average of just 31% of their income to own versus 50% of incomes to rent. That’s a substantial difference when it comes to lifestyle, and affording basic luxuries.
Obviously the savings from buying can be greatly impacted when using a low down payment loan. Still this drops to just a 25% lead over renting, which is still a significant difference for most.
How much individual Long Island home buyers pay for their properties each year also depends a lot on their property taxes. It’s no secret that many tax bills, if not the overwhelming majority are far overblown. Get these adjusted and you can save even more on living expenses.
Home buyers should challenge property tax assessments as soon as possible in order to save the most. Sellers can find getting their taxes corrected and reduced before putting homes on the market can help make homes more affordable, attractive and competitive. This means helping to sell them faster, and net more.
So buy a home if you don’t own one yet, but don’t neglect to get property taxes fixed and reduced for maximizing savings.