Your mortgage isn’t the only expense you’ll need to think about when you buy a new home. Real estate taxes can take a significant bite out of your budget depending on where you live in New Jersey. Read on to find out just how much you can expect to pay if you move to Frenchtown Boro.
Average Real Estate Costs in Frenchtown
Frenchtown residents pay an average of $9,114 per year in property taxes, according to information provided by NJ.com. When you compare that figure to average property tax bills in other parts of the state, Frenchtown is on the mid- to low-end. Princeton residents pay an average of $19,872, while the average tax bill is $13,686 in Scotch Plains, $18,220 in Summit, and $9,524 in Hillsborough.
Although $9,114 is the average amount paid in Frenchtown, you may receive a higher or lower tax bill. Real estate tax varies based on the age and size of your home and any improvements that have been made.
If you’ve been looking at both new and existing homes, you’ve probably noticed that real estate taxes are slightly higher for new homes. While you will pay less in taxes for an older home, you’ll also have to budget for minor and major repairs. Roof and window replacement, flooring upgrades, plumbing leaks and heating system repairs can be quite expensive. In fact, Americans pay an average of $3,067 on home maintenance costs yearly, according to Zillow.
Most builders offer home warranties that cover repairs during the first year you live in your new home. While it’s true that you’ll eventually have to tackle a home maintenance project, it may be many years before you need to replace or repair anything when you buy a brand new home.
How Frenchtown Boro Uses Its Real Estate Taxes
Real estate taxes pay for many services provided to Frenchtown residents, including public schools, libraries, community colleges, parks, recreation programs, trash collection, road repair and replacement, sewer system, and ambulance, police and fire service. Thanks to a cap on real estate taxes, your taxes won’t increase by more than 2 percent without a vote on the proposed new tax rate.
Calculating Your Housing Costs
It’s hard to determine just how much you have to spend on a new home without a clear idea of the real estate taxes you’ll be expected to pay. If you only look at your monthly mortgage payment, the budget you set might not be realistic. In addition to mortgage payments and taxes, you’ll also need to consider utilities, homeowner’s insurance, homeowner’s association fees, food, gas and miscellaneous expenses. Using an online mortgage calculator makes it easy to determine just how much you’ll spend each month.
Before you sign a contract for your home, it’s a good idea to find out if the municipality has any expansion plans that could increase your taxes. School renovations, a new community pool, a sewer replacement project or major work on local roads could bump up your payments more than you might expect in the coming years.
Ideally, the town will have kept up with repairs to prevent the need for multiple major projects at the same time. Making low taxes the only factor in your decision can backfire if the heating system in the elementary school must be replaced at the same time the antiquated sewer system breaks down.
It’s also important to consider the number of businesses in the municipality. If you live in an area that’s mostly residential, you can expect to pay more in property taxes. In Frenchtown, the tax burden is shared among homeowners and business owners.
The brand new Country Classics at Frenchtown community, consisting of 19 single-family attached homes, includes a PILOT program (payment in lieu of taxes). This will help its homeowners save on their taxes for the first 11 years of ownership. To learn more about this new home community and the PILOT program, visit our website and contact our Sales Team for more information!
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