A glimpse into what NJ’s urban future will look like. Ever increasing property taxes will create a situation where the urban poor can no longer afford to even pay their property taxes, leading to property tax foreclosures in massive numbers.
NJ’s rapid increase in property taxes over the last 15 years has barely even been mentioned as a factor in driving foreclosures during the crisis, but it’s absolutely the fact. Rapidly rising tax payments create an identical situation to resetting adjustable rate mortgages and unexpected increases in monthly payments … without corresponding increases in wages.
So take a good look NJ, because you are looking at the future of NJ’s cities.
From the Detroit Metro Times:
Here is a horrifying map that shows every Detroit tax foreclosure since 2002
We all know tax foreclosures are a problem in Detroit, but this map from Loveland Technologies really puts the horror of the situation into perspective. Shown are all of the properties that have been foreclosed and sold at auction in the city over the past 15 years.
Michigan law allows for the foreclosure and seizure of properties with three or more years of back taxes. The properties then get sold at auction to try to recoup some money lost. People then get displaced. The houses they lived in then sometimes go vacant. Vacancy leads to blight. Blight leads to depressed property values. You see the problem.
Wayne County has foreclosed on more than 160,00 properties since 2002, with the bulk of them in Detroit.
Good Morning New Jersey
Can it be fixed? Or not repairable?
I left NJ in 2011. Still reads the blog. This is my connection to NJ. I moved to FL. I am glad with the move. We are thinking of moving now to either Nashville or Charlotte. I believe life is small. We should move as much as we can. Ideally living in a place for around 5 years.
Lurks, the NBA salaries will have an impact on the rest of the economy. Not saying this passage is correct, but they very well may be correct. Athletes in other sports are going to demand more now, as will all major employees in every sector as this moves through the economy.
“The 71.2% growth in salary that the average NBA player will receive over the next three seasons – won’t be real! The Federal Reserve’s seven straight years of a zero percent Fed Funds Rate and $4.5 trillion balance sheet as a result of massive quantitative easing – will be responsible for all of it! NBA players are known to be big spenders, not savers or investors – so all of this explosive NBA salary growth will result in enormous US price inflation!
The Fed’s monetary inflation has blown up an artificial bubble in the price of TV content – and although it has taken some time to work its way through the economy, we are about to see the Fed’s monetary inflation turn into massive price inflation! The same thing happening in the NBA is also occurring across many different industries!”
How long before inflation puts housing prices up 10% a year on avg? If you have not purchased real estate yet, better do it now before inflation has its way with the pricing.
Remember, with inflation, the foreclosure process will be taken care of. Wipes their enormous debts away as the cost increases.
In an era of high income inequality, never ever buy in the poorest areas. You will absolutely get killed. In an era of decreasing income inequality, you buy up as much of the poor area as you can….the money being dropped into that population’s hands = easy money.
“So take a good look NJ, because you are looking at the future of NJ’s cities.”
Our Family annual income has been growing at least 5% annually. All this increase has been eaten by Health Care contribution.
We consider ourselves lucky.Most Americans have not seen salary increase in the last 15 years,while Health Care contribution have increase.
Even if salary will start increasing at the rate of inflation,Most Americans will just be playing catch up.
Something has to be done with the healthcare industry, it’s literally robbing the economy of its economic potential. It’s clear the market can not support these prices when entire yearly raises of workers goes to the cost of healthcare Just not sustainable.
I have been saying for quite sometime how the real estate market in North Jersey is still not normal. A few weeks ago I bought a condo in Fort Lee at sheriff sale. Complex is The Palisades. Unit is one of 20 townhouse units in a complex which is 540 units, 520 of the units are in a high rise. Unit is about 2400 square feet with an unobstructed view of NYC and the river. Last sold in 2005 for $1,150,000. My current value estimate is $735,000. Unit is in very nice condition and no work is needed.
Fort Lee is a reasonably strong market. Condos have been out performing houses in appreciation in most of North Jersey (not Fort Lee). How is it that this townhouse is only worth 64% of it’s 2005 sale price?
Unit is tenant occupied. Current rent is $4000 per month. Paid $574,000. Already have an offer of $680,000 cash closing with tenant in possession. Told the offer to go away and only come back with something that begins with a 7.
“Voters need to understand that this cost objection is specious. That’s because, as experience in many countries has demonstrated, the total cost of providing health coverage under the single-payer approach is actually substantially lower than under the current system in the United States. It is a bedrock economic principle that if we can find a way to do something more efficiently, it’s possible for everyone to come out ahead.”
https://mobile.nytimes.com/2017/07/07/upshot/why-single-payer-health-care-saves-money.html
“Whitman lowered the sales tax from 7% to 6%.”
And then shifted the entire burden of the discount to your local property taxes. Whitman was a gimmick a minute.
That Hamburg cop story is unbelievable. Sadly I’m sure such cases are occurring in your home town too. I know in GR, our police chief is tied up in some asinine lawsuit file by the an office assistant. In the schools, an excellent principal is being sued for supposedly making anti-gay gestures against a school shrink and then putting his office in the basement of the school which caused additional harm, even though nearly all of the offices are down there.
Those high NBA salaries are largely attributable to the lucrative contract the NBA signed with ESPN a few years ago. Since then, people have been cutting cable in droves, ESPN’s ratings are down and they have been announcing layoffs. We’ll see how sustainable those mega salaries are.
NBA salaries jumped so much because of a number of reasons.
1. The game exploded on an international level, unlike MLB and NFL. NBA has players from every continent and most major countries. So revenue was way up.
2. The NBA owners were playing games with numbers claiming poverty for years but once the LA Clippers (the historic biggest laughing stock of the NBA) sold for 2 billion, the jig was up.
Michael Jordan was earning 33.1 million a year in NBA salary in 1998. The best players are only getting back to that level now 20 years later. The union’s agreements previously did a lot to suppress salaries of the best players in the league.
@BillKristol
Those who today talk incessantly about
Making America Great Again
have little interest in or appreciation of what truly makes
America great.
30 Year, I’ve been poking around Zillow looking at foreclosures. Never done one and know little to nothing about the process. Do you get to look at property before auction or do you walk in to the place 30 min before the process starts and make a decision on property, price willing to bid etc. Any info appreciated. Thought is if I can get a good deal would bid. Good deal being total cost to make it nice less than 70% of what it would realistically sell for when work on it finished. Thanks,
Nine thousand dollars in annual property taxes on a $139,000 house. What a deal! If one were to do a traditional 30 year mortgage, you would pay about 2.5 -3x the value of the house in PROPERTY TAXES ALONE (depending on how fast the property taxes rise each year). Everybody else is getting hosed too.
It is one giant circle jerk. People brag about their salaries, then give it away on overpriced dwellings, ridiculous taxes and fees.
This is the ridiculous corner this state has painted itself into.
Young people will not/can not buy. Seniors therefore cannot sell. The fat cats in Trenton and these little thiefdom townships are ruining an otherwise nice geographical area to live: Oceans, parks etc.
Right on point.
http://johnpavlovitz.com/2017/05/26/no-white-friend-you-werent-embarrassed-by-barack-obama/
Fab? You find this interesting? Still playing the racist narrative? Come on. Give it a rest already. 15% of the U.S. is black. Yet we (you and me) elected a member of this tiny minority twice! I know no one who was embarrassed by Obama. As a matter of fact, he was definitely more groomed for the office than any president I can think of in my lifetime. Not sure what this author is getting at besides, well, embarrassing himself actually.
Just because the property is cheap, doesn’t mean the cost of living (taxes) is. You are still living here, therefore must pay the costs of everything that comes with it. The price is a reflection of what the people in that market can afford, the taxes are a price of what it costs to live there. Don’t get it twisted. Just because they bought a much cheaper house doesn’t mean they are entitled to a cheaper cost when it comes to paying the costs of keeping society going.
If you think corruption is the cause for the high costs in this state, try hiring your own security or pay for your own emergency services and see how much it costs. Hell, just look at education; daycare costs how much, and they are paying their teachers min wage.
So when you complain about high taxes and high cost of living, you are really complaining about the declining state of living in this country and no politician in this country can save you from that. No one will tell you this (they will make every other excuse in the book like corruption, welfare, and govt workers. The hard truth is that the declining stadard of living is to blame, but NO POLITICIAN OR NATIONAL FIGUREHEAD wants to talk about what to do about income inequality. Easier to blame than address this difficult problem.
Steve says:
July 9, 2017 at 5:35 pm
Nine thousand dollars in annual property taxes on a $139,000 house. What a deal! If one were to do a traditional 30 year mortgage, you would pay about 2.5 -3x the value of the house in PROPERTY TAXES ALONE (depending on how fast the property taxes rise each year). Everybody else is getting hosed too.
Fab whitest guy is right. This whole racist thing is just exhausting.
TWG/3B
Take the race conclusion out of it and the argument still holds water.
I have always classed this discussion in the terms that O critics held him to a standard that that never applied to GWB and will never be applied to those people to Trump. The why they do that is a seperate discussion from the actuality that it happens.
I have heard many in here throw the “embarrassment” argument around over the years. Are we great yet Gary? Maybe they can step up and answer why O was and T isn’t!
Its a sad sign of the times when Lindsay Graham is the sensible spokesperson for the GOP.
https://www.newsmax.com/Newsfront/lindsey-graham-trump-putin-disatrous/2017/07/09/id/800620/
Step aside Francis Scott Key, your work is done.
http://www.slate.com/blogs/browbeat/2017/07/09/donald_trump_s_home_movie_reviewed.html
Such Greatness!
https://www.msn.com/en-us/news/politics/white-house-confuses-taiwan-and-china-in-painful-g20-press-release-blunder/ar-BBE0rty