Advice on Buying a house during COVID and Taxes in Westchester

[Anonymous]

I am originally from DC, but have lived in Manhattan with my husband for the past decade. When our lease ended in May, we made the decision to decamp to my in-laws vacation home in the Berkshires with our toddler and pets (storing all of our worldly possessions in the house's large garage). We initially though we'd be here for a year, but are now hoping to put an offer down on a house in Westchster/Fairfield County by November/December as my in-laws recently announced that even though they were initially OK with us staying for a year they are feeling cooped up in DC and want unencumbered access to their vacation home over the next year (i.e. they would like us to leave, so they can take their COVID vacations to the Berkshires in peace -- and no, to the best of my knowledge we haven't done anything to precipitate this change of heart). As a result, we just started looking in earnest and we've quickly become overwhelmed. We've been told by a relator that six months into COVID there are now "COVID comps" in the tri-state area and that these comps are continuing to push housing prices up. We've been assured that there isn't a bubble, but I'm afraid that there might be and I'd hate to buy at the top of the market. We also briefly toyed with the idea of renting in Westchester or Greenwich for the year, but we've moved four times in four years (studio - 1 bedroom - 2 bedroom - vacation house) and I'm honestly sick of moving (and renting), especially with a toddler and pets...and the rental market is crazy right now in both Greenwich/Westport and in the Berkshires (we looked here as well, because we both work full-time and love our childcare provider here and don't want to reduce the amount of transitions for our son). To go through a rental search and another move and finding childcare again, just so we can move again in 12 months seems insane to me.

Does anyone have any advice on how they've handled buying a house during COVID? I'm feeling overwhelmed and stuck...We'd like to stay around $1.25M (we could go a bit higher if needed) and have found some places in Greenwich/Darien/Westport that fit the bill, but I can't get out of my head that we might be overpaying or overlooking things, because we just want to find something that works. Although my husband and I originally decided not to look at Westchester, we started looking in Larchmont recently because prices seemed a little lower. But taxes are so high that it seems like you may save a bit on the down payment, but you'll pay the same amount monthly. Has anyone else been through this struggle? Are the taxes really that much worse?

[Anonymous]

I can’t speak to the localities. But as someone who has moved a lot, I’d suggest letting go of the worry about buying at the top of the market. People almost always buy because they have to buy, not because it’s the ideal time market-wise. Over the course of a 30 year mortgage, buying by 20,000 too much or even 100,000 too much is not dramatic. Meanwhile you’re getting what you really need right now: a place to live.

[Anonymous]

Anonymous wrote:I am originally from DC, but have lived in Manhattan with my husband for the past decade. When our lease ended in May, we made the decision to decamp to my in-laws vacation home in the Berkshires with our toddler and pets (storing all of our worldly possessions in the house's large garage). We initially though we'd be here for a year, but are now hoping to put an offer down on a house in Westchster/Fairfield County by November/December as my in-laws recently announced that even though they were initially OK with us staying for a year they are feeling cooped up in DC and want unencumbered access to their vacation home over the next year (i.e. they would like us to leave, so they can take their COVID vacations to the Berkshires in peace -- and no, to the best of my knowledge we haven't done anything to precipitate this change of heart). As a result, we just started looking in earnest and we've quickly become overwhelmed. We've been told by a relator that six months into COVID there are now "COVID comps" in the tri-state area and that these comps are continuing to push housing prices up. We've been assured that there isn't a bubble, but I'm afraid that there might be and I'd hate to buy at the top of the market. We also briefly toyed with the idea of renting in Westchester or Greenwich for the year, but we've moved four times in four years (studio - 1 bedroom - 2 bedroom - vacation house) and I'm honestly sick of moving (and renting), especially with a toddler and pets...and the rental market is crazy right now in both Greenwich/Westport and in the Berkshires (we looked here as well, because we both work full-time and love our childcare provider here and don't want to reduce the amount of transitions for our son). To go through a rental search and another move and finding childcare again, just so we can move again in 12 months seems insane to me.

Does anyone have any advice on how they've handled buying a house during COVID? I'm feeling overwhelmed and stuck...We'd like to stay around $1.25M (we could go a bit higher if needed) and have found some places in Greenwich/Darien/Westport that fit the bill, but I can't get out of my head that we might be overpaying or overlooking things, because we just want to find something that works. Although my husband and I originally decided not to look at Westchester, we started looking in Larchmont recently because prices seemed a little lower. But taxes are so high that it seems like you may save a bit on the down payment, but you'll pay the same amount monthly. Has anyone else been through this struggle? Are the taxes really that much worse?

If you go onto Zillow you'll find the taxes for each property listed - you can make comparisons by town there. Good luck. I know that Greenwich Ct's taxes are about 3 times what we pay in MD which astonished me when I found out.

[Anonymous]

My co workers in that area have said that indeed, their property values are skyrocketing with people doing exactly what you are. I wouldn't sweat it. Buy the house you love and live there a long time.

[Anonymous]

Yes taxes in Westchester are insane. Remember to consider both property and income tax to get the total picture. In general I think the greater New York real estate market volatile than the DC market. But if Covid fundamentally changes things so more people work from home once or twice a week, that could permanently make places like Westport or Greenwich more desirable for NYC or Stamford commuters. Also if you stay in the home for 10+ years, you should do ok even if prices dip a bit in the short term.

At the end of the day, I would try to find the town where you feel most at home and buy there. The vibe is a little different in each town, as has been discussed on multiple threads.

[Anonymous]

First off, taxes in CT are much less than Westchester so I recommend trying to move to CT unless you are commuting to NYC again regularly at some point, in which case may be worth spending more for Westchester if you’re on an express line.

Second, if you see this purchase as a long term or “forever” home I would not worry about paying more if it’s still in reason for a house you love. Real estate is always up and down but if you are looking at a 20+ year horizon you will likely be okay regardless.

[Anonymous]

Why not stay in the Berkshires area?

[Anonymous]

We live in Larchmont and love it but taxes are astronomical and 1.25 million will get you a small house with a small lot so it really depends on what your needs are. You can walk everywhere in town though which is nice and lots of parks, tennis courts, town beach, etc. I also really like Greenwich--taxes are much lower which definitely helps if one of your kids needs private school down the line.

[Anonymous]

Do bronxville as low taxes