Hey New Jersey – Here’s what Trump did to your home values

From ProPublica:

Trump’s Trillion-Dollar Hit to Homeowners

This entry was posted in Economics, National Real Estate, New Jersey Real Estate, Politics, Property Taxes. Bookmark the permalink.

45 Responses to Hey New Jersey – Here’s what Trump did to your home values

  1. grim says:

    Brilliant piece from propublica.

  2. grim says:

    Speaking of Apple – iPhone 11 best phone ever made, amazing product. Camera is mind-blowing. This coming from someone who studied photography, shot 4×5 film (Toyo 45) and medium format for years (Mamiya 645/6rf), always had top of the line photography equipment, from film to digital. I wouldn’t ever bother to take out my DSLR again. The whole package costs less than a single lens. My wife can snap a portrait mode shot in 2 seconds that rivals my canon full frame dslr/85mm 1.2. Anyone who is a disciple of Cartier Bresson will realize, having the camera with you at all times, being able to “get the shot”, far more important than the ability to blow up to poster size for prints (probably the single biggest complaint against camera phones). Samsung, Pixel … not … even … close …

    Remember when you threw out all your film cameras for the digital point and shoot? It’s time to throw out the digital cameras now.

  3. Joe says:

    Home values are dropping because of excessive property taxes in NJ and it’s your Democrats who did this to you.

    I don’t like Trump but don’t blame him for New Jersey’s very excessive and very stupid tax problem. NJ “NEVER” should have been in a position where legislation like Trump’s tax reform would hit it so hard.

    You should be angry with your many decades of dumb Democrats that you helped elect… because it was THEM who kept raising your taxes and you who were dumb enough to let them.

  4. 1987 Condo says:

    I upgraded from the 6S to the 11 last week, Apple gave me $100 for the 6S and with their new “lower” pricing it seemed to make sense. Not a bad value, in my mind, for a phone, computer, camera and video cam all in one. Would have been nice to have while the kids were growing up instead of lugging around a camera and/or video cam…

  5. abeiz says:

    I take some really nice portraits of my toddler with the f/1.4 every now and then. There’s this intangible quality to them, perhaps it’s just nostalgia for when a nice shot meant something. But yes, the DSLR has been stored for years. I’m not sure it’s really worth much anymore, but I know I do have to dump it. It’s a 60D with Sigma f/1.4. I sold off all my other lenses but kept the body and the prime, just in case

  6. Fast Eddie says:

    Why did Mark Zandi, the go-to economic liberal, leave out the last 50 years of relentless taxes and regulations at the state and local level due to the disastrous dealings of the democrats? Why is he calculating the affects of the Trump tax only? And if this case, then we need to cut programs, eliminate state pensions and consolidate services with adjoining municipalities. Right? I said, right?

  7. abeiz says:

    Condo,
    The convenience of being able to reach into your pocket and snap a memory instantly is paid for heavily in lack of privacy.

    It’s difficult to keep snapping hundreds, thousands, of photos and not backing them up to some cloud like Google Photos. Now that app shows me faces of people I know and asks whose pictures I want to see. Yesterday, Alexa asked me if my name was…and then started listing family members, she said it would be nice to put a name with a voice.
    Creepy sh!t.

  8. PatrioticHillbilly says:

    ProPublica lol. Did you dig down in the story to see it only applies to homes over$1M. Typical fake news.

    They would have spun this for Oblama to say just how fair the tax plan is for low tax states.

  9. Juice Box says:

    I was able to get 2 iPhone for the price of one. BOGO from AT&T you need to purchase a new line, so helps if you have more than one account that is not under contract.

  10. Juice Box says:

    My home price is not down 7%, fake news on million dollar homes. I also got back more in taxes this year do to the bracket changes.

  11. Yo! says:

    ProPublica article interesting but one-sided. Selecting West Orange – where property tax is $28,000 on a middle class house – shows the bias.

    The bottom line is the Trump tax reforms benefit the large majority of Americans and most NJ residents. The losers are the top 5% in NJ, New York, and California.

    And what person would buy a house in West Orange? Before and after the tax reforms, either way the tax alone is a high 6 figure liability.

  12. Yo! says:

    Holy sh!t. House sold in West Orange a few weeks ago for $875,000. Taxes? $57,000.

  13. ExEssex says:

    Here DJT have a snack:

    https://youtu.be/bPpcfH_HHH8

  14. Libturd, seen crazy things done with ping pong balls. says:

    You can’t dismiss the entirety of today’s article.

    The conclusion still stands correct. Many of you all over the country — are paying more federal income tax in order to help corporations pay less federal income tax. Of course with blue states like NY and NJ paying the lion’s share.

    Trump’s economics stink. And he is totally cool with financially fukcking the middle class in exchange for lower taxes on the upper class. He’s simply a vindictive bully.

  15. ExEssex says:

    Trump’s tax plan.

    When it first rolled out – the Corp tax break – it was laughed about at one big multinational. Just a chance to buy back stock, do some layoffs, screw the little guy.

    GOP 4eva.

  16. Fast Eddie says:

    Essex,

    Are you working yet?

  17. chicagofinance says:

    WO is notorious….. the $875,000 is a direct function of the $57,000….. I’m sure it is a tremendous value based on the sticker price, but the carry cost is extreme…

    Yo! says:
    October 10, 2019 at 10:14 am
    Holy sh!t. House sold in West Orange a few weeks ago for $875,000. Taxes? $57,000.

  18. leftwing says:

    “I don’t like Trump but don’t blame him for New Jersey’s very excessive and very stupid tax problem.”

    Yeah, no intention of reopening Red v Blue, which geography contributes more/less to the Federal government under which circumstances, etc.

    Without hitting those hot buttons one point is clear….the ability to effectively reduce the taxes paid to NJ by way of a federal deduction shielded NJ taxpayers from the full effects of the rapid rise and high level of NJ taxes.

    So in that sense did Trump take away the punch bowl from the drunken teenagers at the house party? Yup. He had nothing to do with starting the house party though. Blame NJ for that.

  19. leftwing says:

    “Holy sh!t. House sold in West Orange a few weeks ago for $875,000. Taxes? $57,000.”

    Batsh1t crazy. Don’t have time to dive into this situation but there has to be nearly no scenario where that makes sense relative to other alternatives.

    That’s 6.5%….how do you even come close to making that back?

    Anyone dumb enough to enter that transaction doesn’t deserve any tax break whatsoever. He should instead be paying an additional tax, a “Stupidity Levy”.

  20. Grim says:

    Guessing the house would probably sell for $2 million if not for the taxes.

  21. leftwing says:

    Yeah, agree, and NJ would be temperate if not for the winter.

    No way to justify that.

  22. Not good says:

    Google Lev Parnas, click on the WSJ article and read.

  23. taxes are an investment? says:

    Why are you supposed to make your money back on taxes?

    “That’s 6.5%….how do you even come close to making that back?”

  24. Juice Box says:

    illegal straw donations to PACs nothing new about it other than actual arrests. PACs should be illegal.

  25. shut up pumpkin says:

    taxes are an investment? says:
    October 10, 2019 at 1:13 pm
    Why are you supposed to make your money back on taxes?

    “That’s 6.5%….how do you even come close to making that back?”

  26. D-FENS says:

    Trump made housing more affordable.

  27. 30 year realtor says:

    If you own a large, high tax home in a town that doesn’t have a lot of that product, likely the value of that house has fallen substantially. These homes are going the way of the dinosaur! There is no buyer pool.

  28. abeiz says:

    you heard it here first from 30 year

    I wish there was something we could do to stem the tide of global multi-generational buyers who buy +1MM properties and live in them in relative squalor.

  29. leftwing says:

    “Why are you supposed to make your money back on taxes?”

    You’re not. But pretty much the highest ‘normal’ rate (ie, not the far end of the distribution curve) in NJ and elsewhere is 2.5%. That buys you your town services.

    WTF are you paying the extra 4% for? Have to allocate it somewhere….how am I getting it back or what am I paying for?

  30. Juice Box says:

    Here is a West Orange Budget pretentation for this year.

    https://www.westorange.org/DocumentCenter/View/5473/2019-Budget-Presentation—Final

  31. 1987 Condo says:

    West Orange’s effective tax rate is 3.616 , that is how the example $800,000 home got to $28k. The actual sale example must have been heavily discounted.

  32. Libturd, seen crazy things done with ping pong balls. says:

    WTF are you paying the extra 4% for?

    I’ve been screaming about this for years! No state in the union pays nearly as much for their public workers as NJ does. There’s the outsized benefits. There’s the double and triple dipping. Some things have improved a little due to CC, but much has been reversed by Murphy. This state is dead. Trump simply threw a bucket of lighter fluid into the fire. Doesn’t matter. It all comes to a head the moment the market implodes.

  33. 1987 condo says:

    I think NY may be better. Their pensions are not taxed by the state and city. Plus they are pretty generous, my brothers are bringing in close to $200k from FDNY

  34. TwoTypes WestOrangeEnglewood says:

    Regarding that West Orange property’s taxes.

    There are 2 tax exempt buyers that might bite. A war related disabled veteran that has tax exemption (you’ll see once in a while, but they stick to shore area) and the religious exemptions. Englewood is notorious for it with people declaring a part of their property synagogue like.

  35. Yo! says:

    Juice, thanks for the link. At least West Orange trying to explain the taxes, but why do they need to hire a tree climber int 8.5% tax increase budget?

  36. Crushednjmillenial says:

    For a long time, I have considered Bloomfield to be the canary in the coal mine of what happens with NJ property taxes continuing on their current trajectory. Bloomfield is almost at the point where its most modest homes carry a $10k annual tax burden. Maybe West Orange is actually the town that will show us what happens when the property taxes get too high.

  37. joyce says:

    Property Taxes in West Orange have been out of line (compared to the rest of NJ’s already crazy taxes) for a long time. I can’t imagine how much more they have to increase to be “too high.”

  38. Joe says:

    I didn’t write that at 7:40.

  39. joyce says:

    They’re paid too much (all in). There’s way too many of them, and I’m not just referring to the redundant administrator positions. I’ve read some recent studies that say NJ no longer has top benefits as compared to other states. While that may be true, maybe, they compare the benefits that a brand new employee will receive… which is a fraction of the total of current employees.

    Libturd, seen crazy things done with ping pong balls. says:
    October 10, 2019 at 4:18 pm
    WTF are you paying the extra 4% for?

    I’ve been screaming about this for years! No state in the union pays nearly as much for their public workers as NJ does. There’s the outsized benefits. There’s the double and triple dipping. Some things have improved a little due to CC, but much has been reversed by Murphy. This state is dead. Trump simply threw a bucket of lighter fluid into the fire. Doesn’t matter. It all comes to a head the moment the market implodes.

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  41. taxtax says:

    House prices in bergen have gone up in the last 3 years.. Keep going up. Not sure why. I think because people haven’t figure it out that they are losing money in reality… Most people who buy 500K+ homes would have enough income where they would max out their deduction by state income tax alone which is 10K… ZERO nada for property tax…

    If you are renting, you are getting the max benefit… The landlord isn’t hit with this because he can still deduct property taxes on the house you are renting..

    So a workaround this problem is, you rent your home to your buddy and he rents his to you and you both take property tax as business expense deduction… LOL…

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