CHAPTER 2 THE HIDDEN COST OF PROPERTY TAXES IN NEW JERSEY When I sit down with homeowners and ask them what they pay in property taxes, they usually say it casually. “Twenty eight thousand.” “Thirty two thousand.” “About thirty five.” Their tone tells me they have grown used to it. After all, they have been paying it for years. But accepting something does not make it harmless. In my experience, most homeowners have never really calculated the long term cost of those taxes. Not just year to year, but decade to decade. And that is where the real shock usually comes in. Why Property Taxes Are Different From Other Costs A mortgage eventually disappears. Insurance fluctuates. Utilities go up and down depending on usage. Property taxes, on the other hand, almost always rise over time. They do not build equity. They do not improve your home. They are not an investment. They are an ongoing withdrawal from your household income. Think about it like this. If someone told you that you were putting thirty thousand dollars a year into a retirement account, you would immediately ask how it grows, what the interest rate is, what the long term projection looks like. You would analyze it because it is your money. But thirty thousand dollars in taxes disappears the moment you send the check. It does not grow. It does not compound. It does not become an asset. It simply goes away. Poof! Gone. 6
Powered by FlippingBook