Upstate New York Market Viability

[Bruce McKenty]

I am not sure if this topic has been discussed specifically or not but this piqued my interest in the topic and I couldn't find anything addressing it specifically. (Please excuse me if it has already been addressed and if you could post a link to that topic, I would appreciate it!)

At risk of revealing a new shade of green, I knew taxes up here were high but I wasn't aware, as I'm sure that many of you are, that they were the highest in the nation (in terms of percent of home value)! In case others were in the dark with me, I wanted to share and get everyone's thoughts.

Especially with populations in Upstate stagnating/declining (see an article on that here), the long-term viability of investment in these markets might be called into question, especially when comparing to other areas around the country.

That being said, these issues are not a new phenomenon. Most likely, those of you reading this are well aware of these market factors and choose to or are looking to invest in Upstate. Why not take your money elsewhere?

I'll start:

I fall into the "am looking to invest" category. I am from the Rochester area originally and have family here. I am tied here for ~2-3 more years for personal reasons and am not sure what I will do when those issues are cleared up. Further, I am looking to owner occupy because of the lower down payment options. Therefore, as long as I can find a deal that cash flows in the short term, I figure that getting my feet wet is better done sooner rather than later. Even if I decide to leave the area, I'll have options when that time comes. So, for now, Rochester is my option.

What about you?

[Mike Cumbie]

Yes property taxes are very high. There are several exemptions that work for non investors though. So if you are owner occupying (duplex/triplex or quad) then you most likely qualify for discounted rates. I'm not going to justify their taxes but based on your situation you can compensate for the couple years you may be own. Now of course this also prevents the "Accidental Millionaire" who bought a property and all of a sudden it skyrocketed and you are now rich. That does not happen here sadly :)