Long Island Residents Getting Priced Out of Homeownership
Friday, January 4, 2013
Bank of America’s CEO says there needs to be a major reset in the expectation that everyone gets to own a home, and given the slew of increasing costs of homeownership for those in Long Island, he might be right…
Nassau and Suffolk County may not have been as hard hit by the foreclosure crisis as most of the rest of the nation but that doesn’t mean many won’t continue to lose their homes.
In a recent speech in Washington, Brian T. Moynihan, the CEO of Bank of America raised questions on tightening up mortgage lending and whether everyone should really be able to expect to own a part of the American Dream. While that may come across as being incredibly harsh and a poor signal for those who have been hoping home loans would become easier to get, he may unfortunately be right that many may soon be unable to afford to own a home.
New York and especially Long Island real estate isn’t cheap as it is and restricting access to mortgages any further would certainly keep more buyers out of the housing market and make it a lot tougher for local homeowners to refinance and enjoy lower interest rates.
Local businesses and residents are already more cash strapped since hurricane Sandy, while the cost of living and owning a home keep on rising.
According to the Federal Bureau of Labor Statistics the consumer price index in the region has already jumped 2% in the last year as of November as the price of gas and other living expenses soared in the wake of Sandy.
Aside from every day consumer goods and the cost of borrowing, rents are heading up sharply too. This will continue to keep buyers out of the market and make it more difficult for them to ever be able to buy a home.
However, even more of a concern is perhaps the rising costs of owning a home and how that could oust many locals from their residences. Insurance rates are sure to rocket in the wake of Sandy and as we have seen in hurricane prone zones like Florida those hikes can come fast and furious.
It’s also virtually impossible to hop online, turn on the TV or open a newspaper today and not hear more doom and gloom about the fiscal cliff which threatens higher taxes, coinciding with the implementation of Obama Care and the financial impact it will deal on companies and ability to maintain employees.
There may be little most can do about these living cost increases. However, perhaps even more of a threat to homeowners is the expected property tax hike in the wake of the recent storm. New Yorkers have already been complaining about pricey property tax bills, even before the super storm and now a reduced tax base and massive cleanup bills threaten new hikes. This is on top of the fact that many of those living in Nassau and Suffolk County have still been paying property taxes based upon old, higher values.
Fortunately, whether you home has suffered damage from Sandy or not, you can fight back against paying too much in property tax this year with the help of local independent Long Island Property Tax Adjusters, but only if you pick up the phone and find out what you are entitled to save…