Potential tax overhaul giving New York home buyers pause

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

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
Steven Mnuchin and 740 Park Avenue (Getty, Google Maps)
Steven Mnuchin’s $26M home finally finds a buyer
Steven Mnuchin’s $26M home finally finds a buyer
Robert Millard and 9 East 88th Street (MIT Corp, Google Maps)
Former Lehman exec lists Carnegie Hill mansion for $38M
Former Lehman exec lists Carnegie Hill mansion for $38M
April’s occupancy levels climbed to 61.6 percent, above March’s 60.9 percent. (iStock)
Demand for short-term rentals surges past pre-pandemic levels
Demand for short-term rentals surges past pre-pandemic levels
Cape Cod and the Jersey Shore suffered among the sharpest inventory declines. (iStock)
Here’s where homes virtually sold out in the pandemic
Here’s where homes virtually sold out in the pandemic
1384 Meadow Lane
The 20 priciest Hamptons sales this year
The 20 priciest Hamptons sales this year
Airbnb CEO Brian Chesky. (Airbnb, Getty)
Airbnb’s losing spree continues with $1B loss in Q1
Airbnb’s losing spree continues with $1B loss in Q1
Madison Realty principal Josh Zegen, Raphael Toledano with the properties at 325-329 East 12th Street and 223-235 East 5th Street (Madison Realty, Google Maps, Toledano by Michael McWeeney)
Madison Realty Capital closes on Toledano’s bankrupt East Village portfolio
Madison Realty Capital closes on Toledano’s bankrupt East Village portfolio
Manhattan and Brooklyn saw all-time records in lease signings in April (iStock)
April leases soared across city; so did concessions
April leases soared across city; so did concessions
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...