Big government budget hikes, and historic Fed interest rate increases are compounding other factors to make it even more challenging for New Yorkers to keep up with property taxes.
The Huge Fed Rate Hike
The Fed just made one of the biggest one time rate hikes, accelerating mortgage interest rates by the most in around 35 years.
Mortgage rates have now almost doubled to around 6%, and they could be going up a lot more.
This will mean that far fewer will be able to afford to buy homes or refinance them. Homes will effectively be many times more expensive to buy and hold.
This all comes on top of other inflation and price hikes.
New Government Budgets
All of this looks to be compounded further by increases in NY government budgets.
NYC’s Adams just set a record high new budget for 2023, at $101B. This exceeds the 2022 budget by $2.4B.
One positive thing may be a $215M cut in the school budget after reduced costs and lower costs since COVID.
However, the record high new budget also means a $4B annual shortfall in funds between now and 2026. With federal aid also ending, budget shortfalls to support planned spending could be hundreds of millions greater.
The governor has also declared $46M will be given to pay for summer jobs, including $3.3M on Long Island.
Your Property Taxes
These new government budgets, and their shortfalls will have to be paid for by local taxpayers. This represents billions more local property owners will have to find to pay each year.
All while the cost of maintaining and keeping their homes, and keeping the lights on skyrockets. While their property values appear poised to tank alongside the stock market and their retirement savings as well.
It is vital that NY homeowners increase their budgets to account for these coming increases. All aside from accounting for massive hikes in grocery bills and gas prices.
If you are finding your property tax bills becoming a financial strain, then get in touch with us to found out how much you could be saving each month and year by appealing them.