Property prices on Long Island are heading up, and that may not be a good thing for everyone.
Newsday reports that Nassau County property prices jumped up 9% in March 2017. Suffolk property prices rose by 7% in the same month. While that may sound great to some Long Island property owners, it also signals more jumps in property tax bills to come too.
Following home sales hitting a new 10 year high in January 2017, this is shaping up to be a very active year in real estate. The NY times reports that teardown and rebuild activity in the Hamptons is busy. With even relatively new properties being razed to build bigger ones, and NYC’s expanding condo development activity local property prices and assessed values could skyrocket even further by the time peak summer home buying season is over. This could be an excellent time for many Long Islanders to sell and cash out after a great run up in values over the last few years. Those deciding to stay put or super-size their NY properties had better get ready for some equally super-sized property tax bills too. With fears that New Yorkers could be stripped of additional tax benefits by next year, those net bills could be compounded by new policies.
This news comes just as peak tax refund season kicks in too. A Fox News and BankRate.com report estimates around 111M people will receive tax refunds this year. The IRS says around 70% of Americans should be eligible for a refund in 2017. Survey respondents say they will use their refund cash for a variety of purposes from shopping sprees to vacations, to paying down student loans, and saving and investing.
Tax refunds could provide a key opportunity for many Nassau County homeowners who are feeling the pinch of Long Island’s epic property tax bills. It’s not secret the area has some of the most burdensome taxation in the nation, and the world. Some savvy taxpayers may choose this moment to use tax refunds to pay property tax bills, pay down mortgages so that they can sell properties while buyers are their most active, to renovate and reposition properties for resale, or to intelligently improve existing properties and stay in place. Those that aren’t entitled to a tax refund this year, may still turn to local property tax adjusters to minimize their housing costs, and retain their properties at more affordable rates.