New York has been riding a bull run in the economy for years. That high could be coming to an end in 2019. Here’s how to avoid the hangover and financial traps, and enjoy more financial peace…
Property Taxes
2018 was a devastating year for New Yorkers and their property taxes. First it was the new income tax rules and cap on deductions. Now for those in Nassau County it is dealing with a County Executive who has effectively tripled tax assessments, leading to many homeowners facing 50% higher property tax bills. This circumventing of laws limiting assessment increases is going to bring a lot of hardship at an already tough time. This could be layered with even more new tax hikes if the new house majority gets its way. Challenge your property taxes now. Don’t be victimized by this unfair system.
The Housing Market
Even while property taxes and assessments are going up, real estate values are going down. New York is on the front line of the new declining property market. Business property owners are being hit with vacancies, landlords are being hit with declining rents. Competition among home sellers is expected to soar by double digits this year, while sellers slash asking prices.
If this isn’t going to be your forever home, then now may be the best time to sell for many years. If you do plan on this being your long term dream home, then ignore temporary value fluctuations and be prepared to hold on for another decade or more as the housing market comes full cycle again.
Consumer Debt
Lenders have been working overtime to push all types of offers of credit. From car loans to credit cards, personal loans and small business loans, and mobile phone, consumers have been inundated with offers. Many of them promising low introductory rate deals. Only interest rates are now at a new 7.5 year high. When those intro deals run out, the cost of that debt will skyrocket, along with monthly payments. Don’t fall for it. Minimize this debt and these bills now.
The New Recession & The Stock Market
Stock market investors are especially vulnerable to the change in tide of the economy. If you are relying on stocks for income or your retirement, this is an important time for a portfolio check up and revaluation. Analysts have been warning about this new recession for a while. It should come as no surprise to any New Yorker. When it really kicks in employment and wages can suffer. For many this will only compound the above financial struggles. Shed unnecessary bills now and create a cushion of disposable month income to deal with any coming loss of income.
Watch out for these factors this year and enjoy more financial peace instead of being a victim.