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. Another abatement 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 a 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.