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The office of @nycmayor announces @zohrankmamdani pied-a-terre tax proposal on second homes valued above $5m, endorsed by @govkathyhochul
What do we know and what don't we know? What affect will this have on our market? How does Ken Griffin feel about it???
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#NYCRealEstate #BillionairesRow #PiedATerre #LuxuryReal…
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Mamdani pushes pied-a-terre tax on homes valued above $5m!
A couple days ago @nycmayor @zohrankmamdani proposed a tax on owners of second homes in NYC valued above $5m. The proposed rate structure would include a sliding scale from 0.5% on property valued above $5m up to 4% on properties valued above $25m. Townhouses …
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Manhattan Luxury Market Update | Week of April 6th
The Manhattan luxury market picked up with 38 contracts signed above $4 million... 7 more than the previous week. Condos outsold co-ops, 24-11, with 3 townhouse in the mix.
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While the NYC real estate market isn't as affected by macroeconomic trends as the US market as a whole, this article by @samanthadelouya in @cnnbusiness with expert commentary from Coldwell Banker CEO @kaminicbr highlights a theme our market has been dealing with over the last ten years: dysfunctional Federal Governmen…
jacobwoodre
The office of @nycmayor announces @zohrankmamdani pied-a-terre tax proposal on second homes valued above $5m, endorsed by @govkathyhochul
What do we know and what don't we know? What affect will this have on our market? How does Ken Griffin feel about it???
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#NYCRealEstate #BillionairesRow #PiedATerre #LuxuryRealEstate #NYCPolitics #ZohranMamdani #KenGriffin #ManhattanRealEstate #NYCHousing #TaxTheRich #NYCBudget #CentralParkSouth #LuxuryMarket #NYCCondos #RealEstateTax
Interesting. But not sure I entirely agree.
jacobwoodre
Mamdani pushes pied-a-terre tax on homes valued above $5m!
A couple days ago @nycmayor @zohrankmamdani proposed a tax on owners of second homes in NYC valued above $5m. The proposed rate structure would include a sliding scale from 0.5% on property valued above $5m up to 4% on properties valued above $25m. Townhouses would be taxed at .5%–4% of market value above $5m, and condo / co-ops 10%–13.5% of assessed value above $300k. The distinction is important: the assessed value of apartments for tax purposes is usually around only 4% of their actual market value. Meaning the owner of a condo will have a fraction of the pied-a-terre tax liability as the owner of a townhouse. This is a fundamental flaw in the structure of the proposal as it currently stands and is likely to draw scrutiny in Albany. The tax is projected to affect around 13,000 homeowners and raise around $500m annually.
The Mayor made his announcement video in front of Ken Griffin's $238m penthouse purchased in 2019, which would incur an additional annual tax liability of around $1.1m as the proposal is currently written.
To discern the effect this additional tax is likely to have on the luxury submarket, Griffin's home is a useful example. A $1.1m tax liability increase would nearly double his average RE tax + common charge costs. This would undoubtedly cause a value contraction for the average-priced apartment. But... when Griffin purchased the home in 2019 he himself readily admitted it would never appraise near what he bought it for. It wasn't a value purchase, it was a vanity purchase.
The NYC luxury market has just completed it's third fiscal quarter in a row of banner-performance, all after the next mayor and his policies were a foregone conclusion. Luxury buyers' current financial position has never been better. Continuing to use Griffin as an example, he just closed on another NYC luxury real estate purchase, his second home at 740 Park Ave specifically, for $38m... almost double what the seller paid for it in 2019.
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#PiedATerre #LuxuryRealEstate #NYCPolitics #ZohranMamdani #KenGriffin #ManhattanRealEstate #TaxTheRich #NYCBudget #LuxuryMarket #NYCCondos #RealEstateTax
yeah, the biggest issue here is that it takes a real critique about nyc’s busted property-tax structure and then stretches it into a much broader anti-tax conclusion than it actually proves.
the uneven treatment between condos/co-ops and townhouses is a legit flaw that should be fixed. but beyond that, this reads like luxury broker panic. using ken griffin as the centerpiece is almost self-defeating. if a guy can drop obscene money on multiple nyc homes, the idea that a tax on second homes over $5m is some catastrophic assault on the market starts sounding pretty dramatic.
also, a slight cooling of the ultra-luxury pied-a-terre market is not automatically some public tragedy. these aren’t primary homes for ordinary new yorkers. if the goal is to raise revenue from underused luxury assets instead of squeezing working people harder, that’s a pretty defensible policy choice. fix the structural imbalance, sure, but acting like billionaire second-home owners are the victims here is a bit ridiculous.
This is really well worded and I’m so happy to be a team. @jacobwoodre
jacobwoodre
Manhattan Luxury Market Update | Week of April 6th
The Manhattan luxury market picked up with 38 contracts signed above $4 million... 7 more than the previous week. Condos outsold co-ops, 24-11, with 3 townhouse in the mix.
jacobwoodre
While the NYC real estate market isn't as affected by macroeconomic trends as the US market as a whole, this article by @samanthadelouya in @cnnbusiness with expert commentary from Coldwell Banker CEO @kaminicbr highlights a theme our market has been dealing with over the last ten years: dysfunctional Federal Government policy trumps normal market cycles... no pun intended.
From the Tax Cuts & Jobs Act, to the pandemic, to interest rate volatility following the collapse of First Republic, to 'Liberation Day', and now to the Iran War, our market has been stymied by ill-conceived Federal Government policy. Competent leadership is integral to a sustained, healthy economy. May cooler heads (somewhere) prevail before our economy -- to say nothing of our geopolitical standing -- suffer further.
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#jacobwoodre #cnnbusiness #nationalrealestate #nycrealestate #manhattanrealestate #mortgagerates #interestrates #realestateinsights