Renovations and taxes

Does anyone have information on how much taxes increase after a renovation on a 2 Family Home? And how this relates tot he cost of the renovation on an A2 or A1 permit? Is there math on how this is computed?

jimyjames.robert96

in General Discussion 1 year and 2 months ago

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chemosphere | 1 year and 2 months ago

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It’s not just Park Slope, it’s neighborhoods with 1-3 fams that have shown tremendous price gains since the 1970s. UWS too. Here’s a $6m house with $30k in taxes. As a percentage, it’s half of what the Carnasie house pays. https://www.zillow.com/homedetails/11-W-74th-St-New-York-NY-10023/31518929_zpid/

chemosphere | 1 year and 2 months ago

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problem is even parts of Brooklyn have worse tax to value ratios. Here’s a house in Carnasie that sold for $437k. Taxes are $5k. If the Park Slope houses above where taxed at this rate they would be paying close to $100k a year. https://www.zillow.com/homedetails/217-E-86th-St-Brooklyn-NY-11236/30766195_zpid/

RobertGMarvin

in General Discussion 1 year and 2 months ago

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Steve: Are there many 3.9 million dollar houses in Alabama? 🙂

justinromeu26 | 1 year and 2 months ago

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Taxes on a 3.9 million dollar house in alabama are 24k. The all around better deal is the house facing prospect park.

Guest User | 1 year and 2 months ago

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I’m sure taxes are cheaper in Alabama, but I wouldn’t want to live there either

Guest User | 1 year and 2 months ago

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That’s why we live in Brooklyn , not westchester

chemosphere | 1 year and 2 months ago

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“A five-bedroom brownstone facing Prospect Park in the Park Slope section of Brooklyn is currently listed for sale at $8 million. But it has an extremely low assessed value, leading to an annual property tax bill of $20,165 despite its huge market value.

By comparison, the owner of a ranch-style home in Fieldston in the Bronx would pay roughly the same in property taxes on a house with a market value of about $2 million. So would the owner of a $900,000 home just north of there, in Yonkers in Westchester County, according to tax records.” https://www.nytimes.com/2020/01/30/nyregion/property-tax-reform-nyc.html

justinromeu26 | 1 year and 2 months ago

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Cate, if you took the value of a house here with taxes of 23k and tried to do that in nassau or suffolk counties, the taxes would be double. When we bought in here in queens, our taxes were only 3k. At that time i looked at house in just over the line in nassau that was 7/10’s the price of what we paid here and the taxes were 9400. Taxes are lower in here. Yes, we pay city income tax but the density in here allows the taxes to be less.

cate | 1 year and 2 months ago

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This idea that people in Park Slope aren’t paying full freight puzzles me. $23,000 a year on a 20-foot-wide house seems plenty high to me. New Yorkers also pay city income tax. For the same real estate costs and property taxes you could live in New Jersey and Westchester (or Palo Alto, Calif.) where the public schools are outstanding and crime is low. Sure, lower the property tax of co-op and condo owners. Why not?

colonialrevival | 1 year and 2 months ago

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I think we should pause this conversation until the SALT cap expires in 2025 🙂

chemosphere | 1 year and 2 months ago

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Meanwhile, do we care about coop and condo owners who are longtime homeowners? Do they deserve tax relief too? Do they deserve to live in “stable, thriving neighborhoods”? because our system benefits 1-2 fam owners but not them. They end up paying higher prop taxes as a percentage of the value of their homes than the house owners do, folded into their HOA or maintenance fees. What is the benefit of that?

RobertGMarvin

in General Discussion 1 year and 2 months ago

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Only a century chemosphere? I had my house customized by the builder when we bought it in 1899. 🙂

randolph | 1 year and 2 months ago

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boomers ruined and continue to ruin everything for future generations. this is a well established fact.

chemosphere | 1 year and 2 months ago

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Among other things these perverse systems incentivize, is encouraging boomers, who don’t need them, to stay in large homes, keeping them off the market for younger generations, who do need them.
https://www.cnn.com/2024/01/16/economy/boomers-own-more-larger-homes-than-millennial-families/index.html#:~:text=Empty%20nest%20Baby%20Boomers%20own,a%20recent%20report%20from%20Redfin.&text=Buying%20a%20family%2Dsized%20home,for%20young%20people%20with%20children.

chemosphere | 1 year and 2 months ago

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nooooo. California’s prop 13 is widely viewed as a catastrophic policy mistake. Also nearly impossible to change now. But yes, a big difference between NY and CA is in CA taxes are reassessed at purchase. Whereas we reward purchasers with grandfathered-in low taxes as long as they don’t file for a renovation, why, exactly? To help longtime homeowners? https://www.latimes.com/california/story/2019-08-25/skelton-proposition-13-legislation-ballot-measure-taxes

randolph | 1 year and 2 months ago

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the way California does property taxes seems more fair to me – i could be wrong but I believe your taxes are 1% (maybe closer to .75% in certain counties?) of the purchase price and the yearly increase is capped at 2%. this would both satisfy an owner like Bob who has been in their home for close to century and would properly recalibrate the tax when the property changes hands. this might result in lower property values across the board but how is that a bad thing – making it easier for more people to become a homeowner whereas now you need such a massive amount of cash just to get in the door.

chemosphere | 1 year and 2 months ago

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oh come now people. Here’s one that sold for $12m with taxes of $23k, does that satisfy you?
Who are these owner occupants we are designing our state’s fiscal policy to benefit? Would you like me to show you a listing of another owner occupant, who owns a house in Carnasie or Brownsville, that is worth a fraction of the amount of these mansions, paying more than 1.1% in taxes?
Do you think the NAACP is opposed to helping “owner occupants”?

https://www.nytimes.com/2020/02/24/nyregion/property-tax-reform-nyc.html

https://www.zillow.com/homedetails/17-Prospect-Park-W-Brooklyn-NY-11215/30586956_zpid/

colonialrevival | 1 year and 2 months ago

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Yes — just because a property is listed for sale at an insane price does not mean it is worth that much. The $/sqft of the listing shared is nearly double what comparable homes on the same or neighboring streets have sold for.

cate | 1 year and 2 months ago

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    bool(true)
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    bool(true)
    ["publish_feed_templates"]=>
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    bool(true)
    ["delete_feed_templates"]=>
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    ["delete_published_feed_templates"]=>
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    bool(true)
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    ["delete_published_shortcoders"]=>
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    ["edit_published_shortcoders"]=>
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    ["aioseo_page_analysis"]=>
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    ["aioseo_page_advanced_settings"]=>
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    ["aioseo_page_schema_settings"]=>
    bool(true)
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    bool(true)
    ["rank_math_titles"]=>
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    bool(true)
    ["rank_math_sitemap"]=>
    bool(true)
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    bool(true)
    ["rank_math_admin_bar"]=>
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    ["rank_math_analytics"]=>
    bool(true)
    ["rank_math_content_ai"]=>
    bool(true)
    ["srm_manage_redirects"]=>
    bool(true)
    ["SPF Manage Analytics"]=>
    bool(false)
    ["administrator"]=>
    bool(true)
    ["editor"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

The house on the market asking $16 million hasn’t changed hands (except between relatives for $0) since 1978. The only renovation permit I see is for “minor roof work” in 2010. Anyone can ask whatever they want in a sales listing, it doesn’t mean that’s what the property is “worth” or that they’ll get it it. The DOF looks at closed sales prices and comps. The NYC cap benefits owner occupants and allows them to stay in their homes by raising taxes gradually over time. This helps create stable, thriving neighborhoods.