The real estate market seems to be following the stock market down. Yet, neither income or property taxes seem to be going down for Long Islanders. With this in mind, what are the best money and housing moves to make now?
In the first few months of 2022 home asking prices in some US cities had already fallen by as much as 20%. Yet, investors kept paying over market value premiums to scoop up rental properties to cash in on the inflation they saw in rental rates. No Bloomberg reports that the US rental market is showing signs of softening, and declining rents too.
Instead of volunteering the appropriate tax reductions to residents, most property owners have found that their property tax bills are only going up.
Should I Sell My Home And Rent Instead?
Instead of just staying put, and watching your home value and wealth drop, while being financially squeezed for more taxes, on a depreciating asset, some are probably asking whether it is wiser to sell their homes and rent for the next few years instead.
That may have well been a wise move last year. It could have helped many preserve the windfall of wealth that they had accumulated in their homes. Then give them a nest egg, which they could tap into to buy new homes once the market bottoms out.
It may be a lot harder to sell today, as most would be buyers are now putting off purchases due to high mortgage rates, and fear of values going down further.
It is an option if your home is becoming unaffordable, and you want to save any equity you have left. Yet, you will still want to grieve your property taxes and get them lowered before listing your home for sale. This is going to be essential for having a competitive home listing, and getting the highest sales price for your home.
The Benefits Of Holding Your Home Through The Next Crisis
It may be scary to think about holding onto your home as you watch its value plummet to half of what it was worth last year. Yet, there can be benefits to holding on, if you have the stomach for it.
First of all, it can save you all the stress of moving several times in the next few years. As well as all of the costs of taxes and fees on a sale, and moving into a new place.
House values may get scarily low. Yet, history suggests that they will always bounce back. Even if that takes 7-14 years. If you love your home, and don’t plan to need to move in the next few years, then it will eventually be worth more than it is today. You just have to ride it out.
How To Keep Your Home Affordable
If you are going to stay, it is worth getting proactive about taking action to keep your home affordable.
Costs are just going up, and 80% of US workers fear layoffs are coming. The time to get ahead of this is now.
Some ways you can do this include:
- Reducing your utility usage
- Renting out a room for extra income (where it is legal)
- Shopping around for lower cost insurance coverage
- Refinance to lower your rate, and lock in a fixed loan before it’s too late
- Vote at your association meetings and local elections to keep dues and taxes down
- Challenge your assessment and bill with the help of Property Tax Adjusters, Ltd.