For most of us in New Jersey, buying a home is one of the greatest expenses of our lives. Therefore, understanding the nuances involved with NJ property taxes will insure that you maintain and keep this most treasured investment without falling into financial arrears.
How do Property Taxes Work?
Property taxes are a type of tax which is levied on property you own. This can include land as well as residential and commercial buildings. These taxes are used to pay for things such as utilities, fire service, roads, schools, and police departments. While some dislike the idea of paying property taxes on top of the mortgage cost, these taxes are actually used to raise the standards of living for all the residents living in the area.
Those planning to buy a home in New Jersey should bear in mind that although the property taxes here are some of the highest in the continental U.S., there are attractive homes and buildings here that can be acquired for reasonable prices. The standard rate for property taxes in this state is about $8,000 per property. Because property taxes may differ substantially from one area to another, even within the same state, it is important to factor these figures into your budget.
What First-Time NJ Home Buyers Need To Know about Property Taxes
Those buying a home for the very first time in New Jersey will need to do their homework. You will first want to speak with a reputable NJ realtor that knows the locality very well, but you should also find out the average property tax rate for the specific area of New Jersey where you intend to purchase property. Combining this knowledge with the assessment property value as well as the appraised value after improvements will give you a solid idea of what you will pay.
Generally, the property taxes you will pay in New Jersey are determined by the yearly budget for the town or city where you will live along with the sales tax for that area, which will be divided by the aid which is given by the state. All properties purchased here have base values. When a property owner makes their property more valuable, their property taxes will be lower. However, when property values decline then the property taxes will increase correspondingly.
Choosing Your NJ Location Carefully
The property taxes for certain regions of New Jersey are significantly higher than others. Areas with the lowest property taxes include Walpack Township and Camden City, while Milburn Township and Loch Arbour Village have some of the highest.
Young couples with children will want to choose an area which has good public or private schools, while those who are retired, divorced or widowed may want to choose an area with entertainment options that suit their lifestyles.
Of course, there is a lot of information to consider when buying your first home, but selecting an area which best matches your needs and desires is the perfect way to insure that your money was well spent on your property taxes.