Many of us have been impressed by the resiliency of the Cambridge residential real estate market in the current economy. Possible reasons for this include convenient travel to Boston, a vibrant local economy, short commute times, a robust social scene, it’s just plain fun to live here, as well as one that may be overlooked: low real estate taxes.
A quick calculation taking Cambridge’s residential exemption into account indicates that, for a $1M residence, one could save approximately $550 per month by living in Cambridge in comparison with Belmont, one of our neighboring communities. That amounts to $6,600 per year and, without taking interest or tax implications into account, $66,000 over 10 years, $132,000 over twenty years, or $198,000 over the life of a standard thirty-year mortgage!
With these savings, one might consider paying down their mortgage a bit more quickly; others might find other investment opportunities; while others might simply buy “more house”.