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New York

Potential tax overhaul giving New York home buyers pause

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

Luxury apartments in Manhattan (Credit: Beyond My Ken)
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.

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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