If you’re weighing up whether to buy a house or a condo in NYC (and by a house we also mean a townhouse as well as a single family) property taxes will weigh heavily in your decision making. Here’s what you need to consider.
Single family homes in NYC usually consist of townhouses, or in parts of Queens and Brooklyn, single family frame homes. Buying a condo in the current market can carry some distinct advantages over buying homes when it comes to taxes. The reason — one word —Abatement.
Numerous condos currently on the market have a tax abatement for 10 years or more. Their plans were mass filed under the 421a Tax Abatement before it first ended in 2017 (it was later renewed under a different name and structure). Another abatements available to condo and co-op owners was the J-51. We are now at the peak of those abated properties being on the market.
In addition, if a residential condo is primary residence the “Cooperative and Condominium Property Tax Abatement” is a crucial source of savings. It reduces property taxes for apartment owners all over the city. The owner must meet the requirements but with abatements offered between 17.5% to 28.1%, the savings can be significant.
When a house can be a good deal
If you are buying a multi family property — say a duplex or triplex — and plan to live in one unit, your taxes will certainly be higher than if you were buying a single family house or a condo. However, the calculation you will have to make is whether your rental income will offset your taxes. If so, a multi unit property may work for you.