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January 23, 2008

How Will Spitzer’s Budget Affect Real Estate?

spitzer-budget-01-2008.jpgYesterday Gov. Spitzer introduced his $124.3 billion budget for the fiscal year that begins in April, a plan that calls for a spending increase of 5 percent as well as various cost-cutting measures meant to address the state’s estimated $4.4 billion budget deficit. So what sort of impact will the governor’s plan have on real estate? For starters, one of the most significant aspects of the budget involves increasing the real estate transfer tax, which is paid on property purchases above $175,000. Spitzer is also proposing a freeze on spending for the $4.7 billion School Tax Relief program, which uses state money to lower property taxes by funding school districts and giving rebate checks to homeowners. At the same time, Spitzer is looking to increase spending on affordable housing via the new $400 million Housing Opportunity Fund, which will go to the creation and preservation of low-cost and supportive housing. Some independent budget analysts say Spitzer’s plan doesn’t go far enough in terms of curbing spending. Nevertheless, the uncertain economic climate was clearly weighing on the governor. “Like every other state in the nation, New York is feeling the effects of a serious economic downturn, requiring us to make tough decisions necessary to continue moving our state in the right direction,” Spitzer wrote in a statement accompanying the budget.
Spitzer Plans Cuts and Fees to Close Deficit of $4.4 Billion [NY Times]
Spitzer's Budget Triggers Backlash [NY Sun]
2008-2009 Executive Budget [NY State]
Photo from state.ny.us

Posted by Gabby at 9:00 AM | Comments (22)
Categories: Money, Politicians

January 16, 2008

NYC Property Values Level Off

crown-heights-buildings-01-2008.jpgThe large yearly gains in the city’s property values appear to be a thing of the past. The Finance Dept. estimates that city property values rose only 1.44 percent in 2007, a big drop after six years of double-digit increases (in 2006, for example, there was an 18 percent gain). The smaller increase in values is being attributed to declining values in small homes outside of Manhattan. The growth in real estate values over the last several years has helped buoy the city’s economy and contributed to record budget surpluses. The lower assessments may force the city to make increases in the tax rate or end the $400 property tax rebate, according to David Weprin, chairman of the City Council Finance Committee. “This is an indicator that we might be up for some tough fiscal times, and Wall Street isn’t helping, either,” Weprin told the Times. “Property values are no longer going up; they’ve stabilized, and I would expect that’s the trend we’ll see before they go down.”
Gains in NYC Property Values Start to Flatten Out [NY Times]
Home Values Drop, But Taxes Go Up [NY Post]
Growth in Property Market Value Slows [NY Sun]
Photo by crown heist.

Posted by Gabby at 9:00 AM | Comments (34)
Categories: Money, Real Estate

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