BROOKLYN – For some buyers, finding a condo with a tax abatement — when taxes are reduced or exempt for a specific chunk of time — will lower their monthly costs enough to enable them to afford a pricier condo.
In today's strong real estate market the exemption proves controversial, and the de Blasio administration fought to get rid of it for condos. Instead, starting next year, it will only apply to newly built condos in the outer boroughs with fewer than 35 units and average sales prices that are $700,000. Plus, new residents will be required to remain in their units for at least five years.
Those rules, however, won't apply to these three condos with tax abatements.
587 Washington Ave., #1, Crown Heights
Three bedrooms/Two-and-a-half baths
Condo
Approximately 2,256 square feet
$1.399 million
Common charges: $691 a month
Taxes: $37 a month with abatement until 2035
Open House: Sunday, Nov. 22, noon to 1:30 p.m.
Lowdown: Although the building is just five years old, “there are contextual details like brick and nautical stars on the facade,” said Corcoran broker Jeff Lorenz. “Everyone thinks it's an old building.”
The duplex occupies the first floor and cellar. Because of its ground-floor location, there's a private garage that opens right into the apartment, Lorenz noted.
While legally a one-bedroom (which is located on the upper floor), the current owners separated the lower floor into three bedroom areas (without building walls).
“It's a very flexible layout that could be set up in a lot of different ways,” said Lorenz.
An open spiral staircase brings in some light to the lower floor. “There's quite a bit of light downstairs, although there are no windows,” Lorenz said.
Lorenz called the tax abatement a major selling point.
“There's 20 years left on the tax abatement, which really appeals to buyers,” he said.
Location: The building is located on the border of Prospect and Crown Heights, and is just a short walk up to Clinton Hill. There are a number of shops, cafes and restaurants right on Washington Avenue, two blocks west on Vanderbilt Avenue, and two blocks north on Fulton Street.
The closest subway line is the C at Clinton Washington, about four blocks away.
Why put it on your open house calendar? “It's all about the space,” said Lorenz. “2,500 square feet at this price range ... you can't find anything else like that.”
353 E. 104th St., #9C, East Harlem
Two bedrooms/Two baths
Approximately 1,072 square feet
Condo
$850,000
Common charges: $1,169 a month
Taxes: $503 a month with abatement until 2018
Open House: Sunday, Nov. 22, 11:30 a.m. to 12:30 p.m.
Lowdown: This condo building, known as Observatory Place, was built “during a wave of new construction around 2007 in East Harlem, before the recession,” said Stribling broker Jason Lanyard.
The sponsor of the condo held onto this particular apartment during the recession and upgraded it before putting it on the market in 2013.
The current owner purchased the unit as an investment property and has a renter in place. The renter's lease will be up in February, and Lanyard said “they will play it by ear depending on the new owner.”
The apartment has some fancier finishes than other units in the building, including caeserstone quartz countertops, self-closing drawers and a frosted glass backsplash in the kitchen. The floors were upgraded from oak to bamboo, according to Lanyard.
“It's even more of a brand new product,” said Lanyard.
The open living room, dining room and kitchen come with views of the East River. There are two bedrooms off the living room; the master can fit a king-sized bed and the second bedroom can fit a queen.
The tax abatment is in place for three more years, and next year, the cap will be raised to $650 a month.
Location: This building is located off First Avenue, on the very eastern edge of the neighborhood, near the East River esplanade. It's four avenues east of the 6 train at 103rd Street.
Why put it on your open house calendar? “East River views,” said Lanyard. He added, “this is a good neighborhood to get in now before you're priced out.”
47-34 11th St., #403, Long Island City
Two bedroom/two baths
Approximately 971 square feet
Condo
$1.195 million
Common charges: $756 a month
Taxes: $114 a month with abatment until 2028
Open House: Sunday, Nov. 22, noon to 1:30 p.m.
Lowdown: This apartment is located in the Bindery, a boutique condo building that's only two years old.
“Because it's still a new building, you have over 12 years of tax abatements on units,” said Modern Spaces broker Carlos Simoes.
As for the apartment, “it's all open concept” said Simoes. The open living room, dining room and kitchen is accented by a brick wall.
The kitchen has a breakfast bar, granite countertops and stainless steel appliances, including a dishwasher. Both bathrooms have radiant floor heating and marble-topped vanities.
The master bedroom is large, able to fit a king-sized bed and other furniture, while the second bedroom could fit a full-sized bed comfortably.
The seller purchased a storage unit in the building and is including it in the sale at no extra charge, according to Simoes.
Location: The building is located between Vernon Boulevard and Jackson Avenue, both main drags of the neighborhood. It's a three-block walk to Gantry Plaza State Park, which faces the waterfront and Manhattan skyline.
The 21st Street/Van Alst G train station and the Vernon Boulevard/Jackson Avenue 7 train are both within a few blocks of the apartment.
Why put it on your open house calendar? "The current tax abatement in place until 2028," said Simoes. "This makes up for thousands of dollars in property taxes savings every year."
