Lawmakers proposed a 1% tax on all-cash New York City home purchases above $1 million to help close a multibillion-dollar budget gap. The plan was expected to raise about $160 million annually, but it is reportedly being removed during ongoing Albany budget negotiations. The residential industry opposed the tax because cash purchases are now a dominant part of the NYC market, especially at high prices. In Manhattan, 65% of purchases were all cash, and 75% of deals above $1 million were cash. Across NYC, nine out of 10 deals above $3 million were cash. Critics warned the tax could encourage deal restructuring or small mortgages, potentially slowing transactions and affecting pricing.
"Brokers and analysts immediately speculated that buyers could simply take out small mortgages to avoid the tax or restructure deals in creative ways. Others warned the added cost could weigh on pricing, slow transactions and furt"
#new-york-city-real-estate #all-cash-home-purchases #housing-taxation #budget-negotiations #mortgage-rates
Read at therealdeal.com
Unable to calculate read time
Collection
[
|
...
]