Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
One of the advantages of buying in NYC, based on what I heard, is the low property tax. But after looking through many listings, I am not convinced of the tax advantage myth.
For example, a 2 Bedrooms/1.5 bath condo built in 1988 in bay ridge, brooklyn is listed at $575K, with annual tax rate at $4,850, plus monthly common charges of $353 (x12 for yearly). So the tax+common total runs >$9,000. Does this really sound that low in comparison to what long islanders pay in their 2,500 sf houses? Or do houses pay lower tax rates in NYC? Once I saw a mil dollar tudlor house listed in Bayside with estimated annual tax of ~$12,000.
From my limited research in the past looking at condo real estate taxes, I saw that condos pay just as much tax as houses and in some cases more than houses in the same neighborhood. However most new condos in NYC with the exception of a few neighborhoods have tax abatements for 15 years, but that doesn't apply to older condos of course. As for houses in Northeast Queens, the pattern seems to be about 6k a year per 4000sq lot. The same house in a comparable neighborhood in LI is 30-40% cheaper, but the property tax runs about 9k a year. And bigger lots in LI don't seem to incur as big an increase as in NYC. The diff in taxes and home price between two houses of the same size next to each other with one on a lot double the size of the other wasn't that significant in LI when I last looked. Of course this may depend on zoning etc. Once you factor in NYC income tax, forgetaboutit.
Last edited by bumblebyz; 09-11-2013 at 10:01 AM..
One of the advantages of buying in NYC, based on what I heard, is the low property tax. But after looking through many listings, I am not convinced of the tax advantage myth.
For example, a 2 Bedrooms/1.5 bath condo built in 1988 in bay ridge, brooklyn is listed at $575K, with annual tax rate at $4,850, plus monthly common charges of $353 (x12 for yearly). So the tax+common total runs >$9,000. Does this really sound that low in comparison to what long islanders pay in their 2,500 sf houses? Or do houses pay lower tax rates in NYC? Once I saw a mil dollar tudlor house listed in Bayside with estimated annual tax of ~$12,000.
So why do you add maintenance(common charges) of condos to the real estate taxes and lump it all together without doing the same for houses ? Isn't that a little absurd if your goal is to make an accurate comparison of real estate taxes ? Do you think houses require no maintenance ?
From what I have seen ,in comparisons of real estate taxes on houses in my Bronx area( Pelham Parkway/Morris Park) with nearby Westchester towns,the taxes tend to be much,much lower on the NYC side of the line.A $500,000 house might have re taxes of 4,500/yr in Pelham Parkway/Morris Park but have real estate taxes of $10,000 or $15,000 a couple of miles away in Pelham or New Rochelle.
One of the advantages of buying in NYC, based on what I heard, is the low property tax. But after looking through many listings, I am not convinced of the tax advantage myth.
For example, a 2 Bedrooms/1.5 bath condo built in 1988 in bay ridge, brooklyn is listed at $575K, with annual tax rate at $4,850, plus monthly common charges of $353 (x12 for yearly). So the tax+common total runs >$9,000. Does this really sound that low in comparison to what long islanders pay in their 2,500 sf houses? Or do houses pay lower tax rates in NYC? Once I saw a mil dollar tudlor house listed in Bayside with estimated annual tax of ~$12,000.
If you live and work in the city, you pay property tax and city income tax.
Say you pay $4k on property tax but you also have to pay $1-4k in city income tax not including state and federal.
That's why it pays to be a landlord in NYC, because you pay only property tax and you collect rent by cash and under report on city income taxes.
It doesn't pay to work and live in the city if you pay over $85k, the city and property taxes will kill you.
For my income bracket, city income taxes is more than the 15-20k nassau county property taxes in the area I'm looking at.
I'm looking for a house in Nassau because of this. Although I dread the suburbs, it makes more financial sense. At least with nassau county taxes, you get quality public schools. For my NYC property+income taxes, I can send my kid to an underperforming ghetto public school or pony up 24k a year for private pre-k (ridiculous).
Who knows what Diblasio will do, since he openly hates the productive class and wants to tax the rich more.
So why do you add maintenance(common charges) of condos to the real estate taxes and lump it all together without doing the same for houses ? Isn't that a little absurd if your goal is to make an accurate comparison of real estate taxes ? Do you think houses require no maintenance ?
Maybe I misunderstood what common charges include. For what I was told, it covers trash collection/common area maintenance. Everything else goes to each condo owner. I have not looked at it in detail but based on this assumption, it is just as absurd to charge that much for these services which are either covered by the property tax or not that much additional amount for houses in the burbs.
For my income bracket, city income taxes is more than the 15-20k nassau county property taxes in the area I'm looking at.
I'm looking for a house in Nassau because of this. Although I dread the suburbs, it makes more financial sense. At least with nassau county taxes, you get quality public schools. For my NYC property+income taxes, I can send my kid to an underperforming ghetto public school or pony up 24k a year for private pre-k (ridiculous).
Who knows what Diblasio will do, since he openly hates the productive class and wants to tax the rich more.
yes you can do that or as many rich Manhattan condo owners working in NYC have found out, all you need is the extra house upstate to change your tax status. I guess you're going to Great Neck?
yes you can do that or as many rich Manhattan condo owners working in NYC have found out, all you need is the extra house upstate to change your tax status. I guess you're going to Great Neck?
There was NYT article last year about how the city is cracking down on that practice. A lot rich people use their Hamptons house as a primary address to avoid the city taxes, but it's almost like an automatic trigger for an audit.
Considering great neck, or any of the north shore suburb along the Port Washington LIRR line.
The real calculation, as pointed out above, is (NYC property tax + NYC income tax) vs. (suburb property tax). Depending on how much you earn, the simple notion that the city is cheaper for taxes does not always fit. As also pointed out, its pretty clear what services and schools you get for your suburban property taxes. In the city, its more of a mystery as to where that money goes. More often than not, it seems to be going to others. The rich think it goes to the poor. The poor thinks it goes to the rich. The middle class think it goes to the poor and the rich. Lots of competition for resources!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
