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WPCNR NEWS & COMMENT: REAL ESTATE. Commentary By Ruthmarie Hicks. May 13, 2010: “Ruthmarie Hicks,(in the Common Council Public Hearing on the budget May 3) noted that White Plains single family homeowners, if property taxes are not held down, will face continued lowering real estate values and higher taxes making White Plains less competitive. Nick Wolf, the realtor,encouraged passing the tax increase since it amount to about $1 a day for the average homeowner.
I, too, am a realtor in White Plains with a strong sales record.
You can make that $1 argument every year and guess what? Within three years – taxes have been hiked over $1000.00. Further, I would note that its going to be well more than $1 a day once the county and schools weigh in.
So if we put it all together we have a hypothetical $2.50-$3.00 a day which adds up to $913 – $1095 per year. Frankly, this $1 a day is a slippery slope because it is the same argument that has caused my taxes to go up over 150% over the past 12 years. For those hanging onto their homes by their fingernails, it is a straw man argument. That “small amount” added to the other unrelenting fixed costs that always go up – is just one extra push over the edge.
The stats I gathered (and referred to at the budget hearing) were from the Multiple Listing Service and I chose two analogous neighborhoods in analogous communities in terms of lot size, home size and age, ease of commute, and general amenities. What the comparison showed (as much as any such survey could) was an apples to apples comparision of two neighborhoods.
The main difference between them is that the neighborhood in Sleepy Hollow had taxes that were much higher. The result was much lower sales prices. (The original blog is on TheWestchesterView.com if you want to reference it.)
I made this comparison because there are those who insist on comparing White Plains to Scarsdale, Larchmont and Rye. I have closed sales in Scarsdale and Larchmont over the past year and will tell you that there is a world of difference between these communities and White Plains. The fact that single family home values failed -even during the height of the boom – to climb to the heights of Scarsdale and Larchmont says it all. They can get away with their large tax bite – we can’t.
When other communities started coming down in price, they became more competitive with White Plains. From being the only game in town for most first-time single-family buyers – White Plains has become one of many alternatives.
For this group of buyers – the biggest carrot White Plains has to offer is low taxes – and easy access to thruways. We can’t even include the easy Manhattan commute because most single family home dwellers must drive to a train station that has no parking available for years on end. Take away the low tax carrot – and single family homes could become a much tougher sell.
My blog site tends to attract GenX, GenY. I can tell you that that demographic – likes the idea of downtown White Plains for the single life – but once they start shopping for a single family home – White Plains is not on the list. Other agents may be getting a different response from buyers, but I note it for what it is and see it as a warning that White Plains had better get its act together in terms of taxes or single familly homes will suffer further price devaluation.
Development has to be supportable in any economy – not just a boom economy where retail sales are high. By making the “Renaissance” so dependant on retail sales – (Mayor Joseph) Delfino created a downtown boom based on the illusion of an ever expanding economy. It does not take a rocket scientist to know that retail sales go DOWN during a recession. It also should be easy to see that having an arrangement so utterly dependent on retail – puts homeowners in an untenable situation when the economy turns.
When I look at how little the residents of Trump and the Ritz pay in their tax bite – it makes me want to throw up. Delfino gave away the store and created a Renaissance that was unsupportable without huge chunks of money from single-family homeowners. Anyone who agreed to the outandish tax breaks on the Ritz and Trump without an argument were not the sharpest knives in the drawer….
These council members know who they are and need to own up to what they did and seek to correct it. That means holding the line with unions and their demands. There was no real inflation last year – but there are a lot of people out of work. That is not consistent granting wage increases. Friends of mine (including myself) have lost income in this recession. Salaries have been slashed as much as 30% in some cases. That’s how the private sector works. The unions need to take note and realize they have a pretty good deal.







