Need Help Saving Your Rental Property Investments As The Market Changes?

Private landlords in New York are being hammered from all angles. Saving money on annual property taxes could be the one thing that saves many, and enables them to avoid ending up in bankruptcy and foreclosure.

6 Million Tenants Default On The Rent

New data reports that six million tenants

Need Help Saving Your Rental Property Investments As The Market Changes?

Private landlords in New York are being hammered from all angles. Saving money on annual property taxes could be the one thing that saves many, and enables them to avoid ending up in bankruptcy and foreclosure.

6 Million Tenants Default On The Rent

New data reports that six million tenants are behind on the rent across the country. With 25% of all renters in Miami unable to pay the rent. Closely followed by Manhattan, Philadelphia, and Chicago. 

This probably couldn’t come at a worse time for many private landlords who thought they could finally see the light of day again. 

Demand Is Evaporating

The wealthy have left, the big finance companies have left, and now young professionals are jumping on the wagons to flee NY’s high taxes and living costs.

As this leaves fewer renters, there will be less demand for units. Which means less good tenants to pick from, longer vacancy times, higher vacancy rates, and lower rents. 

Rental Operating Costs Are Skyrocketing

Tenants and landlords are bracing for what we are told are going to be the highest heating costs we’ve experienced in 25 years. 

That’s along with soaring insurance rates, and other living expenses.

Construction materials for fixing, repairing, and improving rental units are still high. Wait times to get work done seems to be extending. 

Refinancing Is No Longer An Option 

Unfortunately, those that waited to refinance their investment properties have probably long missed the boat by now. 

Lenders are tightening up on underwriting criteria. Some of the world’s largest banks are already selling off prime properties at discounts and to raise cash as they face financial difficulties which could make the Lehman Brothers scandal look like a good day. 

Property values are headed down in many cases, and more and more property owners are finding themselves sinking into negative equity positions. 

Interest rates are way up, and debt to income ratios are being wrecked by all of these factors coming together. 

Appealing Property Taxes

The one thing left that is available to landlords is to appeal and reduce annual property taxes. 

Around half of NY property owners could see significant savings by getting help doing this. Which will reduce outgoing expenses, and will help make ends meet. Perhaps being the one factor that enables them to maintain positive cash flow over the next year. 

Even if you hope to sell your property and liquidate your NY real estate holdings, reducing tax assessments may be key to getting offers from the few buyers that are still in the market. 

Wall Street Monopolizing Housing Thanks To Big Tax Breaks

Wall Street appears to be monopolizing the housing market as small landlords, regular homeowners, and renters are getting crushed. 

Much of the difference in these outcomes all comes down to who is getting the huge sweetheart deals on taxes, versus those that are being victimized by taxes. 

Wall Street Follows The Remote

Wall Street Monopolizing Housing Thanks To Big Tax Breaks

Wall Street appears to be monopolizing the housing market as small landlords, regular homeowners, and renters are getting crushed. 

Much of the difference in these outcomes all comes down to who is getting the huge sweetheart deals on taxes, versus those that are being victimized by taxes. 

Wall Street Follows The Remote Work Trend

As hard as they’ve tried to sell and insist on going back to the office in the city, workers just aren’t buying it. Especially not for companies that do not know how to operate efficiently in the new economy, and want to work them to death 100 hours a week, in high cost cities, with relatively menial pay. 

That hurts for big institutions that have recently built giant multi-billion dollar office buildings, and even warehouses. 

Meanwhile, the Federal Reserve Bank of San Francisco reports that 60% of recent equity appreciation in real estate has been driven by remote work migration. With home values growing by 1% for every 1% of the workforce leaving for remote work. At least in the areas that they are favoring. 

So, Wall Street has had no choice but to shift strategies to make up for pending losses in other sectors. 

Wall Street Taking Over Housing

Since the beginning of the year it has been reported that Wall Street institutions have been plowing tens of billions of extra dollars into buying up the housing market. Especially apartment buildings and entire new home communities. 

Among some types of properties in some areas, they are now buying up 40% or more of all the housing stock. Often paying as much as 50% over retail prices, just to price out regular homebuyers and soak up all of the housing stock.

The New York Times reports that big publicly traded companies are now reporting record profit margins, while small landlords are being financially squeezed out of business. With middle class home buyers being priced out, even if they could find something for sale, and renters struggling to keep up with big rent increases. 

Of course, this is likely to have a double financial impact on civilians as they are being set up for huge losses on their investments and retirement portfolios. While of course, big bonuses will still get paid to these CEO and money managers, no matter what.

Tax Disparity

Taxes continue to be one of the biggest differentiating factors in this mix.

Big companies get the big tax breaks. Whether that is write offs as they lose their investors money, various deductions and write offs for building, or years of property tax exemptions worth many millions of dollars. 

That is all paid for by those they are already squeezing financially. 

Small landlords can't keep up with the  rising costs of maintaining rentals. Especially with rising property taxes and other taxes to pay for their larger competitors to put them out of business. 

Individual renters are being crushed by taxes, lockdowns, inflation, and crime to ice the cake.

Fortunately, taxes are also your chance to even the playing field. Get educated about all the tax  breaks, exemptions, and discounts you should be receiving as a business or home owner. Get help filing appeals to correct your annual property tax bills, and stay ahead of the financial storm that is brewing.

Everything In Real Estate Is Going Down, Except Taxes

Why does everything in real estate seem to be heading down, except for property taxes?

Government policies appear to be doing their job at reducing inflation in the real estate market. With the big exception of our property taxes. Which would have been the easiest way to reduce the pain of high living costs, without stripping away equity and

Everything In Real Estate Is Going Down, Except Taxes

Why does everything in real estate seem to be heading down, except for property taxes?

Government policies appear to be doing their job at reducing inflation in the real estate market. With the big exception of our property taxes. Which would have been the easiest way to reduce the pain of high living costs, without stripping away equity and incomes.

How much is at stake for property owners? How can you get your annual property taxes cut in line with how low your home value is heading?

Pending Home Sales Are Down

US pending home sales have been slowing down for months.Falling 20% year over year as of July according to Trading Economics.

The number of pending real estate contracts that have been canceled or fell through are rising too, and compounding the effects. 

Home Sales Are Down

According to the National Association of Realtors, actual closed sales of existing homes had already fallen by more than 20% as of July. 

Bloomberg calls it a ‘housing paralysis’, as buyers and owners with adjustable rate mortgage loans are reeling from interests doubling this year. Now at their highest since the 2008 Great Recession. 

Home Values Are Heading Down

The above has finally begun to trickle down actual home values, following home sellers slashing their asking prices in hopes of cashing out before their properties devalue further.

Home prices have already begun moving into negative territory according to CNBC. WHile CoreLogic reports more homeowners are now even deeper underwater on their mortgages. With a national total over more than $300B in negative equity. As Bloomberg now admits we might have been in a housing bubble after all. 

Rents Are Sliding Down

Even rents now appear to be decreasing. Several cities have seen a decline in rental rates of around 6% month over month, according to data from Zumper.

Property Taxes Keep Going Up

If everything else is going down, why are our property tax bills in NY even higher?

Technically our annual property tax bills are calculated by multiplying tax rates by tax assessed values. 

So, if home values are going down, then tax bills should be as well. Just don’t expect a voluntary downward reassessment of your property for taxes any time soon.

Fortunately, you can reach out to Property Tax Adjusters, Ltd. and get help correcting your assessment and bill. Just make sure you beat the rush. 

Should The Government Cancel School District Taxes Next?

Should school district taxes be the next debt the government cancels?

School district taxes make up the bulk of already extremely high annual property taxes in NY, and across Long Island.

 With student loans and the cost of going to college in America being canceled and waived by the government to the tune of $500B, why

Should The Government Cancel School District Taxes Next?

Should school district taxes be the next debt the government cancels?

School district taxes make up the bulk of already extremely high annual property taxes in NY, and across Long Island.

 With student loans and the cost of going to college in America being canceled and waived by the government to the tune of $500B, why should other debts and bills like school district taxes and property taxes be canceled too?

The Case For Canceling School District Taxes

There are many reasons that could be used to justify eliminating school district taxes and annual bills for property owners. Or even paying back previous money paid.

These include the following. 

They Are Not Voluntary

College loans are voluntary. Students chose to sign up for them, to take on the debt and promised to repay it. 

Business and home owners have had no choice but to pay for the cost of public schools.  

Property Tax Payers May Not Even Use Local Schools

Just because people own property on Long Island does not mean they use the school system. Unlike those that signed up for college loans. 

They may not have kids. They may send kids to private schools or even home school, or live in another state or country. 

While it may be argued that many colleges have scammed students into attending, taking on debt obligations, and have no promise of getting a job after those years spent there, all of the same can be applied to local public schools too. 

The Money Is Poorly Managed

Few would argue that school budgets are being used wisely or they are being operated efficiently. If they were private organizations they would have been bankrupt long ago. 

If a bill is mandatory, then shouldn’t there at least be more accountability for how the money is used?

The System Is Broken

It has been openly admitted for years that the tax system is broken and flawed. Almost half of all property owners on Long Island get an over-inflated bill each year. 

Yet, at the same time they keep on raising school taxes. Even breaking through supposed limits and caps each year. 

Canceling This Debt Could Save The Economy

Ending these bills would put more money back into the economy. At a critical time, when people are losing jobs, interest rates are going higher, along with other taxes.

How To Get A Break On School Taxes Now 

While it may have been hard to imagine the cancellation of student debt at this scale a few years ago, few expect the same grace to ever be given to those paying even more predatory school taxes. 

So, how do you get a break on your annual property taxes right now?

Challenge them with the help of Property Tax Adjusters, Ltd, get help navigating exemptions you may be eligible for, and request refunds from being overcharged.

Should Big Developers Be Funded By Your Property Taxes?

Should the largest corporations and developers still be getting funding and huge tax breaks paid for by hikes in your property tax bills?

Big breaks and handouts continue to be passed out to those you might imagine need it the least. On Long Island, Baldwin is attempting to attract more developers with a $10M grant. Another developer stands to benefit

Should Big Developers Be Funded By Your Property Taxes?

Should the largest corporations and developers still be getting funding and huge tax breaks paid for by hikes in your property tax bills?

Big breaks and handouts continue to be passed out to those you might imagine need it the least. On Long Island, Baldwin is attempting to attract more developers with a $10M grant. Another developer stands to benefit from an estimated $1.2B tax break around the new Penn Station area makeover project. There are countless other examples.

Why Do Big Companies Get Such Huge Benefits?

Some debate that this is all just about refunding political donors, or skimming money as these funds are passed through many hands. 

Primarily it is argued that grants and property tax breaks are given to these companies to help create jobs, attract tourists, and lift property values (which in turn means more property tax revenues).

It Rarely Pays Off

It rarely pays much in dividends for the taxpayers who fund these big developers with their hard earned wages and excruciatingly high property tax bills. 

Rarely are there as many jobs, or high paying jobs created as promised. Just look at Amazon. They are already throwing in the towel on their recent project, and are renting the space they’ve built to other companies instead. 

When it comes to tax breaks and funds for builders promising ‘affordable’ apartments, those rentals inevitably seem to be priced at the top of the market (not affordable), or the rules for potential residents just don’t make sense, and they sit empty for many years. 

What If…

What if small business owners and homeowners got lower, fairer tax bills?

Then they could afford to hire people, without destruction to the environment, and would get to keep more of their paycheck. It would stay a more attractive place to live, and visit on vacation, fueling the area with more revenues, without bleeding the loyal few to death in taxes. 

Summary

Whether you agree with the principle of funding these big corporations out of your own paycheck or not, or want to pay for it or not, you should be checking your property tax bills, and avoid overpaying. We can help you do that…

Rents, House Prices Fall, But Not Taxes

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

Rents, House Prices Fall, But Not Taxes

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:

Your Neighbors Are Getting Huge Property Tax Breaks

Even more of your neighbors are getting big property tax breaks this year. Isn’t it time that you stopped overpaying?

Some Long Island property owners are benefiting from a variety of tax exemptions, credits, and breaks this year. They are saving thousands, and even tens of thousands, and more on their annual property tax bills. 

Yet,

Your Neighbors Are Getting Huge Property Tax Breaks

Even more of your neighbors are getting big property tax breaks this year. Isn’t it time that you stopped overpaying?

Some Long Island property owners are benefiting from a variety of tax exemptions, credits, and breaks this year. They are saving thousands, and even tens of thousands, and more on their annual property tax bills. 

Yet, others continue just to blindly pay the property tax bills that come in the mail. Even when they face huge tax hikes, and are being blatantly and grossly overcharged. 

This overcharging is even worse this year after flawed reassessments causing huge spikes in property tax bills in Nassau County, as well as an estimated $23B in income leaving the state as so many fled for freer states, and lower taxes and living costs. That is a lot of tax revenues that have to be made up for by those who stayed behind.

More Are Appealing & Winning Property Tax Challenges

Nassau County promised property owners a fairer and more accurate tax system and bills. Instead they got hammered with huge increases in tax assessments, and even more flawed bills. Some have seen their annual bills up 50%, or more. 

This year 48% more property owners have filed appeals. 75% have already won those appeals according to coverage by Newsday. 

If you are not grieving your assessment and bill, then it is highly likely that you are far overpaying. 

Tax Credits & Exemptions

You should be getting help to ensure that you are applying for and receiving the tax breaks, credits, and exemptions you are owed. 

This includes the exemption for superstorm sandy damage. Which was recently extended due to delays and shortages of construction materials during the recent COVID pandemic.

Long Islanders have also recently been hit with surprise income tax bills for grants and work on their homes. The IRS deemed some of these as taxable income, and hit many with extra bills for it. 

This includes grants for updating aging septic systems in Suffolk County. The hope is that these monies will be reclassified to avoid double taxation. 

Summary

If you haven’t gotten help securing the property tax breaks, exemptions, and credits you are eligible for, then you have been grossly overpaying on your taxes. There are certainly better uses of your money, even if that was to give it to an important charity, and getting more tax breaks for it. 

If you are not sure that you have received all the breaks you are owed, get in touch with Property Tax Adjusters Ltd., for help today…