so in this video we're going to talk a little bit about property taxes listed
on new development properties in new york city are the figures that you see
online accurate do they really represent what you'll pay as an owner once you
close and moving forward we'll demystify this topic in the following video i'm
Nick at Hauseit visit hauseit.com to learn how to save money if you're buying
selling or renting real estate in new york city long island the hudson valley
or miami and south florida so let's get started
so do the property tax figures that you see on new development listings in new
york city really reflect what you'll pay as an owner
well the answer to this question is no the property taxes that you see on new
development listings in new york city typically represent only what you'll pay
in the first year and property taxes invariably go up rather significantly in
year two and here's why before a condo building is constructed there is either
an empty piece of land or the land is there obviously but there's something
underwhelming on it there's a small building an old building whatever it is
doesn't fully utilize the available development rights of that particular
lot so once the condo building is completed
the value of that parcel has gone up significantly and in terms of property
taxes they're calculated based on the assessed value of the lot
that assessed value goes up once the building construction is completed so
the property tax figure that you see on the offering plan and on your listing
really represents the property taxes based on either partially
or fully the pre-construction assessed value
so in 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 so just to summarize the property tax
figure that you see on a new development listing in new york city is not accurate
it does not represent what you will pay in year two and beyond property taxes
will invariably go up significantly in year two based on the increase in the
assessed value of the completed building so if you are buying a new development
and you're very focused on carrying costs and you're right at the margin of
what you're comfortable with in terms of taxes and common charges be wary of the
fact that your property taxes will go up now that being said there's nothing
nefarious about this video it's just the reality of the way property taxes are
calculated the lot goes up in value once the building is constructed and so the
property taxes do go up so there's no surprise either because this is also
disclosed typically in the key risk section of the
offering plan of all new development buildings in new york city it'll very
clearly outline what we've outlined in this video namely the risk that your
property taxes will go up in year two and what you see on the listing is not
representative of what you'll pay in year two and moving forward
so if you are looking to buy a new development we'd love to help here at
Hauseit there's a number of ways we can assist you can use our new development
buyer closing cost calculator on our website it is a very detailed tool which
can help you model out the different scenarios you might encounter when
negotiating a new development in terms of who will pay the sponsor closing
costs and of course we can help save you money on your purchase through a house
that buyer closing credit the discount we offer is quite substantial in
particular for new developments because of the fact that commissions are
quite high on these types of purchases here in new
york city so learn more on our website hauseit.com we'd love to help and save you
money and above all we really do appreciate you watching today's video
we'd love to have you as a subscriber to our channel and if you have any comments
please feel free to leave them below this video i'm Nick at Hauseit and we'll
see you on the next one