Potential tax overhaul giving New York home buyers pause

Market may slow down as proposed bills would likely increase home ownership costs

TRD New York /
Nov.November 16, 2017 10:16 AM

Luxury apartments in Manhattan (Credit: Beyond My Ken)

The Republican Party’s proposed tax plans will likely increase the cost of owning a home, and New Yorkers are already taking notice.

The plans, which would reduce or eliminate taxpayers’ ability to deduct high state and local property taxes on their federal returns, are making potential buyers in New York think twice before making a purchase, according to the Wall Street Journal.

The tax issue has started to come up regularly in discussions with potential buyers, and some have already put their purchasing plans on hold. New York City may have to lower its expectations for the amount of revenue it gets from transfer taxes on residential sales because there could be fewer of them.

“It is an uncertain time in the world,” Brown Harris Stevens president Hall Willkie told the Journal. “This is going to create another little pause until people get their hands around it.”

The outlook is much rosier on the commercial side, where real estate players, especially condominium developers, could see several benefits under the plans. [WSJ] – Eddie Small


Related Articles

arrow_forward_ios
From left: the Ritz-Carlton, 32 East 1st Street, 560 West 24th Street, 301 East 80th Street and 32 West 85th Street

Five priciest homes new to market include 1897 townhouse

Ed Gilligan and 3 East 94th Street (Credit: Getty Images, Compass)

Don’t leave home without $21M: Amex exec’s widow sells townhouse

From left: Jed Wilder, Bess Freedman, Richard Grossman, Josh Sarnell and Adam Mahfouda (Credit: Emily Assiran) 

Agents to StreetEasy: The fee is too damn high

40 East 72nd Street (Credit: Google Maps)

Nightmare on E. 72nd Street raises question: Are small condos risky?

Jed Garfield of Leslie J. Garfield; Richard Grossman, president of Halstead Real Estate; Sarah Saltzberg, principal broker and CEO of Bohemia Realty Group; Douglas Elliman’s Howard Lorber

NYC brokers slam bias, promise action after Newsday exposé

The bombshell probe also found that minorities had to meet more stringent financial qualifications than white buyers. (Credit: iStock)

LI agents routinely discriminate against minority buyers, undercover probe finds

Zillow CEO Rich Barton (Credit: iStock)

Zillow and Opendoor aren’t making much on home-flipping

This week, the State Department of Taxation and Finance issued a new memo that notably made no mention of condos. (Credit: iStock)

Regulators quietly change stance on condos in LLC law

arrow_forward_ios