Property Taxes and the Myth of Free and Clear Property Ownership
Friday, December 12, 2014
Property taxes come hand in hand with owning real estate, yet are often overlooked with serious financial consequences. So how can more Long Island home buyers and real estate investors avoid the property tax trap, and where can they get help when things don’t go as planned?
Property tax obligations are often overlooked by first time home buyers. Unfortunately, real estate agents, sellers, and mortgage loan officers can sometimes breeze over this annual (or monthly) financial obligation in order to streamline the sale. Property taxes on Long Island are some of the highest in the world and home buyers need to be prepared to budget for them.
Recent the rush to invest in real estate has seduced many new investors to purchase properties in New York for cash, trusting this will give them a free and clear asset. Without adequate liquid reserves items like property taxes can not only result in liens, but even foreclosure. It may be better for some to use financing and keep more money in savings to account for these holding costs. Mortgage interest may even become an extra tax deduction.
Many are also oblivious to how home improvements, rehabs, and new construction properties can quickly be assessed at higher rates and see annual property taxes balloon fast.
Of those who are new to the Long Island, NY property market, or real estate in general may not be aware of how badly broken the local tax system is, and how common overcharging is. This can add a lot to ownership and holding costs, and take a big bite out of annual cash flow and net investment returns.
Fortunately, the experts at Long Island based Property Tax Adjusters, Ltd. Are on hand to help answer questions and even fight on your behalf to get your NY property taxes lowered. So give us a call today…