Rising real estate costs could push Nassau County one step closer to new housing issues.
How will higher property taxes and costs impact the NY property market? What are the best house moves for Long Islanders now?
Friday December 4th 2015 Mangano’s Nassau County Budget headed for a vote. Among the provisions are higher housing costs, which in tandem with several other market factors could increase the likelihood of another housing crash coming sooner rather than later.
New Property Tax Hikes
A hotly debated feature of the new 2016 Nassau County Budget has been higher property taxes. Despite constant talk of tax breaks for NY property owners, the hikes just keep coming. For many it is the number one factor impacting their housing affordability.
New Real Estate Fees
According to Newsday Long Island the budget also carries new real estate fees which could add thousands to the costs of buying and selling real estate in Nassau, in an effort to raise tens of millions in revenues for the county. This could certainly compound the situation when many are already trying hard to crack the math on living in one of the most expensive parts of the world.
Fed Rate Hike
The stock market has been in a panic over a looming fed rate hike this month. A new interest rate hike spree could last for years pricing many more out of the property market.
Stock Market Fail
While a few like UBS say there could be modest returns in the stock market in 2016, many other financial giants are forecasting a flat year, if not a 50% market crash over the next 12 months. With tech startups feared drastically overvalued the rate hike could spark the domino effect, which normally seems stocks, tech and real estate all suffering crashes in succession. Nationally well be entering around the 7th year of housing growth in the New Year. Historic data suggests that is around the average for many bull runs in real estate.
House Flipping Madness
House flipping has taken off in a massive way again, as has speculative building. With many houses selling in just days at new highs, all it could take is a modest rate hike to change the math for millions of buyers and investors.
Summary
Low current interest rates make it an attractive time to buy good deals you’ll keep, and can afford to keep through all times ahead. However, this needs to account for a cushion to protect against rising costs. Look for ways to minimize other costs including utilities, and property taxes, to reduce holding expenses. Those thinking of moving may find sooner is better than later as popular retirement destinations like Florida are seeing furious competition, and as it could be tougher to sell Nassau County homes later.