I have a property tax payment coming up on May 1st, and it always seems to trigger an escape mentality, as Essex County taxes are notoriously high – in fact, 2024 data shows that Essex County had the highest property tax rate in the state of New Jersey, higher than Bergen County, Morris County, and other places that might be considered more-desirable areas to live. A little more than a year ago, I was fixated on finding someplace new to live, with property tax rates a big part of the equation. My thought was: if I can live somewhere where my annual property tax rate is $6,000 – $8,000 less per year than what I’m paying here, think about how I could afford to travel more and do fun things with that extra money in my pocket!
But the realities of the real estate market, the competition for homes and the need to have cash ready to make an offer on the spot really took the wind out of my sails last year. I started to adopt the idea that my property taxes were the price I pay to have access to the things I enjoy: New York City and all of its art galleries and museums is only a half hour train ride away; a day at the beach in Asbury Park is only an hour drive away; exploring and enjoying Hudson River towns north of me can be done with a drive of less than two hours. An international airport in Newark is only 20 minutes away … it all seems like I’m in a good location and I just have to suck it up and pay the high real estate taxes.
But there’s that May 1st property tax payment coming up, and I started looking at Zillow again. I’ve developed the idea over time that I could have a simple, low-key and affordable home base somewhere and use the savings from not being in the NYC metro area to live a more-adventurous life. Just for fun, I took a look at the tiny little town of Lincoln, Iowa. Why there? My grandmother’s farm was located between Lincoln and nearby Gladbrook – and I’m familiar with the area. My grandmother’s sister lived in Lincoln, and our family used to visit her when we took trip trips to see Grandma. The church where my parents got married was right across the street from my grand-aunt’s house. There’s the interesting history that the town was founded by a group of German immigrant farmers, and in the early 1900s it was known as Berlin, Iowa. But anti-German sentiment after the first World War had the town residents thinking that changing the name to a more American and patriotic “Lincoln” would be a better idea. I am amused by the fact that Lincoln has a sign on the county highway that says “Lincoln, next 5 exits,” because in fact, Lincoln only has 5 streets. I visited again as recently as 2022, when I was in the area for the very last “Gladbrook Corn Carnival” (more on that later), and found it very peaceful.
As one might imagine, a small town of approximately 100 people doesn’t have much turnover when it comes to homes. But, sure enough, Zillow showed me one home available for sale, as you can see above. Asking price? $44,000! And the interior was recently renovated, with new floors and recently-painted walls. And … get this: annual property taxes: $452. Even if I only spent a couple months in Lincoln at this home over the course of a year, the savings in property tax alone could allow me to visit and stay in Airbnbs in different cities around the world. I could have 2 months in Lincoln, live a month in New Mexico, stay a few weeks in Minneapolis, spend time in the Northwest, a couple weeks in the Caribbean … considering my web design work can be done anywhere I have an internet connection, the possibilities are endless!
Maybe I could turn this home into an Airbnb while I’m living and exploring elsewhere and promote it as a “writer’s retreat,” or an “artist residency.” Think about it – turn the fact of being in a tiny town in the middle of Iowa cornfields with nothing to do into a plus! This all seems to make sense, right? It’s a legitimate plan, right?
I suppose it could be … and that was the thought running through my imagination last week. Then the weekend arrived, and on Saturday I decided to hop on the train and go into NYC to see art gallery shows. I was enjoying myself immensely, and in addition to seeing great art, I saw these posters which triggered some thoughts …
The ads are for StreetEasy, which is a real estate marketplace for apartments in New York City. The first one makes me laugh, because I used to live on a cul-de-sac. I actually liked that location, and didn’t think of it as a “dead end,” but I can see how a guy used to the action of living in Brooklyn might think so, since the poster suggests that this guy “left Bed-Stuy in 2021.” The one on the right especially hit home in light of my Lincoln, Iowa thoughts … here’s a couple who thought: “New York or nowhere, and we chose nowhere,” as they sit at their dining room table with a box labeled “New York style pizza,” with a thoroughly disgusted look on their faces. I can identify with this 100%, as I’m sure I’d really miss the pizza I’m used to, whether I was in Iowa or any other place other than New Jersey or New York (New Jersey pizza is pretty great too).
So should I just shut up about my Essex County property taxes, eat my New Jersey pizza and see art in New York City and continue living as I do? I can see the benefits of a low-cost house in Lincoln, as well as the benefits living where I currently reside. I can see the downsides of a small farm community in Iowa, and I can feel the downside of high property taxes in New Jersey. It’s all about location, location, location!