Are the Property Tax Figures on New Development Listings in NYC Accurate?

Nick at Hauseit (https://www.hauseit.com) explains why monthly property tax figures on new development condo listings in NYC aren't always accurate. Save money when buying real estate in NYC with Hauseit: https://www.hauseit.com/buyer-closing-credit/

Save money when buying, selling and renting real estate in New York and Florida with Hauseit (https://www.hauseit.com). Available in NYC, Long Island, the Hudson Valley and South Florida. Established 2014. Learn how it works: https://www.hauseit.com/how-it-works/
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The property taxes that you see on new development listings in NYC typically represent only what you'll pay in the first year. Property taxes usually go up rather significantly in year two.

Here’s why: before a new condo building is constructed, there is either an empty piece of land or there’s something underwhelming on it like a small building. Whatever structure is there doesn’t fully utilize the available development rights of that particular lot. Once the condo building is completed, the value of that parcel goes up significantly.

Property taxes are calculated based on the assessed value of the lot. That assessed value goes up once the building construction is completed. The property tax figure that you see on
the offering plan and on the listing really represents the property taxes based on the assessed value of the lot before the condo building is completed.

Therefore, the year one the figure that you see will not represent what you're going to pay in year two. In year two, the assessed value will now more fully encapsulate the value based on the condo building which has been completed.

The risk of property taxes increasing significantly in year two is disclosed in the key risk section of the condo building’s offering plan.

Check out Hauseit's New Development Buyer Closing Cost Calculator for NYC to estimate your closing costs when buying a new construction condo in NYC: https://www.hauseit.com/new-development-closing-cost-calculator-nyc/
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Save money when buying, selling and renting real estate in New York and Florida with Hauseit (https://www.hauseit.com). Available in NYC, Long Island, the Hudson Valley and South Florida. Established 2014. Learn how it works: https://www.hauseit.com/how-it-works/

Hauseit LLC, Licensed Real Estate Broker
Tel: +1 (888) 494-8258
Email: [email protected]
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