Rental Property Investor · Northern NJ · Member since 2019 · 672 posts · 677 votes
Hi guys and gals!
I'm new to the NJ area and looking to get back into RE buy and hold, current AD coastie. I have a vet realtor who's like minded on the buy and hold strategy. Question that I haven't gotten a lot of clear answers on.
Currently looking at a place in Hudson county selling around $500k 4 unit. The property taxes are listed on the listing at just under $7k for 2017 land $75k additions $25k. What is going on here exactly??? I've done the calculations and even appraising it at $12k (2.234% average property tax for Hudson) still puts me cash flowing but still. I'm just curious. I'm definitely brand new to the property tax world as I was a landlord in Florida where property taxes weren't an issues. Thanks for the help!
Attorney · NJ · Member since 2016 · 1k+ posts · 794 votes
7y
Hi @Mark F., so Union City has an equalization ratio of 36.69%. So the assessments you see on the tax card or online are only 36.69% of what they believe your property value is.
Developer · New Brunswick, NJ · Member since 2015 · 1k+ posts · 2k+ votes
7y
The majority of towns in NJ do not update their assessed values every year. Instead, they update the calculation to get to what your property taxes will be. Some towns are going on 20-30 years between assessments. Don't sweat it if you see a very low tax assessed value for your property but keep in mind they are likely to get re-assessed in the future so you're wearing some property tax risk.
We see it all the time in the towns we manage property for in Central NJ.
Attorney · NJ · Member since 2016 · 1k+ posts · 794 votes
7y
Hi @Mark F., so Union City has an equalization ratio of 36.69%. So the assessments you see on the tax card or online are only 36.69% of what they believe your property value is.
Rental Property Investor · Jersey City, NJ · Member since 2018 · 27 posts · 9 votes
7y
Sometimes the tax listed on listings may not be accurate also, I've seen some differences between them (ie zillow, redfin, realtor.com..etc). You can view the properties actual tax for a given year via this site for Hudson County. http://www.hudsoncountynj.org/search-tax-records/
Rental Property Investor · Northern NJ · Member since 2019 · 672 posts · 677 votes
7y
I checked and going back to 2012 it's listed as 100k assessed. So I assume going forward I should be okay? Again the numbers still work. Even if they came in and assessed it at 550k or something I'm still alright.
Real Estate Agent · Jersey City, NJ · Member since 2014 · 218 posts · 50 votes
7y
`@Mark F. new sale won't change the house' assessed value. The assessed value will change only in situations like you have house improvements, the city does a revaluation, you appeal taxes, and etc.
`@Mark F. new sale won't change the house' assessed value. The assessed value will change only in situations like you have house improvements, the city does a revaluation, you appeal taxes, and etc.