Hundreds of Long Island homes are going up for auction in May 2015. But the extent to which these LI houses are actually deals really comes down to property taxes.
Paramount Realty is auctioning off more than 100 Suffolk and Nassau County homes in late May 2015. These Sandy damaged homes will be going to the auction block with starting bids at a fraction of their previous values. The big question is who is going to buy them when the property tax bills remain outrageous. It doesn’t matter if you can scoop up a property for $200,000 that was once worth $500,000 if it requires a complete rebuild and the tax bills are through the roof.
A $200k home with an $8k to $13k annual property tax bill isn’t a good fit for entry level home buyers. They would end up being on the hook for as much in property taxes as their monthly mortgage payments. Those that can afford the taxes aren’t going to be impressed by the storm damage and aging properties on offer. These leaves the most likely buyers as capital rich investment firms that may renovate and repurpose them as luxury vacation homes, or teardown and rebuild new luxury residences.
The key to success in buying these Long Island auction properties now, or once they have been remodeled is going to all come down to getting property taxes fixed. As new debates rage over STAR property tax rebates and school tax circuit breakers, it is clear the fine print will always result in many not being able to find help from the system.
The only real help for lowering property taxes and finding affordable housing for most is going to be the individual home buyer reaching out to leverage the services of local Long Island Property Tax Adjusters.