Can filing property tax grievances be a gold mine for Long Island real estate investors?
As the Long Island real estate market claws its way back to life are there windfall returns to be had for savvy investors mining untapped resources to create more profits?
According to a new report from Bloomberg News last week local real estate is seeing a huge surge in demand as buyers rush to scoop up property deals in the face of rising rates. In the second quarter 2013 home sales in the Hamptons leaped to a new seven year high, up 25% year over year. Along with this came a healthy 8.2% lift in the median home price.
Data from the Treasury Department and RealtyTrac shows many new foreclosures still in the works along with an outrageous 46% re-default rate on some loan modifications. However, with declining inventory levels and more competition real estate investors are finding it takes a little more creativity to uncover the biggest profits.
Still savvy investors can find even better deals and more profits by eliminating a lot of the junk costs that are attached to homes, to dramatically increase spreads for flipping homes and cash flow on buy and hold rental properties.
With property taxes being one of the most significant housing expenses and having a notorious reputation for being incorrect on Long Island smart investors could find that filing property tax grievances build in thousands more to real estate deals every year.
Going further thousands more in profits and room to scoop up Long Island homes for less than what is owed on them can be found from negotiating down code violations, other liens, mortgages balances and other fees and penalties. Even on a modestly priced property this can easily add up to tens if not hundreds of thousands of dollars others may be overlooking.