Blecher_onthe_Hudson OP t1_ja9g7ix wrote
Reply to comment by bodhipooh in Anyone else get a 'Chapter 91' notice from the city assessor demanding rent & expense info on income property? by Blecher_onthe_Hudson
It's the way it's always been, and typically the tax on a commercial property is lower than what you'd think for a similar residential. Residential is subject to what Alan Greenspan called "irrational exuberance" in the market, whereas a commercial property is a business and businesses are valued according to how profitable they are. Unless you're a tech startup of course!
The real arbiter of all this is the banks. If you try to borrow money for a commercial property that their appraiser says isn't producing enough income for that price, they're just not going to loan you what you want. Most residential properties and especially condos in JC have prices that are unsupported by their rents.
bobomerk99 t1_jacb822 wrote
>and typically the tax on a commercial property is lower than what you'd think for a similar residential
Really? Can you pull some examples of commercial properties and their property tax?
Blecher_onthe_Hudson OP t1_jad7a6d wrote
Very easy, just compare the assessment of a local property with a store vs similar ones without. https://oprs.co.monmouth.nj.us/oprs/External.aspx?iId=12
265 8th st, AKA 'Walt's Liquor", commercial property with store and 3 units $964,600
267 8th st 4 units $1,284,600
269 8th st 4 units $1,419,600
Note that 265 is a corner and obviously worth more just in land value.
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