Submitted by Grant, Jan 8, 2008 12:34

This thread isn't a rant as much as it is complete, utter disillusionment. My wife and I in the midst of buying our first house and I'm feeling a little down by the entire process. We have no kids, however my mother in-law has MS. She can no longer live on her own and we had to make a decision to move her in or put her in a nursing home.Our combined annual income is $145K and we have very little debt.

We've been qualified and been pre-approved for a mortgage for $415K at 6.7%. We're looking at houses in the $340-$370 range.No higher than $375K. However the town (where my mother-in-law lives)... and all the surrounding towns, no make that the entire surrounding county has suffocating taxes. We've found our dream house... asking price is $399K. The mortgage we qualified for is more than within our budget... but even if we can bid them down... the taxes are not. $11,200 per year. I'm sick. Basically a $1000 per month added to my $2500 mortgage payment. Looking into the property the Fair mkt values was assessed at $525K. In three years not a single home on that street has sold more than $405K.

I don't understand, nor do I comprehend how anyone can afford to buy in parts of the NY where taxes make up more than 1/3 of the mortgage payment. Even with a meager STAR deduction it puts our monthly payment to what I would expect to be paying for a $530K home. My parents are looking to move to Tennessee. We don't have family there.... we don't have friends there. My parents can't afford to live here... My parents paid off their house three years ago. Yet the are still left with a $7200 tax bill Property tax in Tenn on a 2500 sq ft home new construction with 1 acre... $900 per year.

I'm willing to lower my budget and expections... I can look for houses in the $300K range... most of which in this area excludes new construction. Mostly homes that are 30-40 years old, shoebox bi-levels with outdated kitchens. I'd rather call it a day and rent a condo. Is buying a house such a great investment when I stand to spend nearly 20% of my net income on property tax?

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