CHANGE IN TRANSFER AND MANSION TAXES
New transfer and mansion taxes will go into effect July 1 for New York. The original Mansion Tax in effect from 1989 to mid-2019 was a fixed 1% of the purchase price for all residential sales of $1 million or more. The new Mansion Tax enacted in April 2019 consists of 8 tax brackets ranging from 1% to 3.9%. The lowest rate of 1% applies to sales from $1 million and below $2 million. The highest rate of 3.9% applies to sales of $25 million or more. It’s an amazing piece of news for the luxury real estate market in NYC and beyond.
The NYS Transfer Tax was previously a fixed 0.4% of the sale price. As part of the 2019 update, a higher tax bracket of 0.65% was created for sale prices of $3 million or more. The higher 0.65% tax bracket was also adopted for commercial transactions, however it kicks in starting at $2 million as opposed to higher $3 million threshold for residential deals.
There were no changes to the NYC Transfer Tax Rates as part of the 2019 updates to the New York State Transfer Taxes and the Mansion Tax. The NYC Transfer Tax remains at 1% for sale prices of $500k or less and 1.425% for anything above $500k.
The NYC Transfer Tax is payable by sellers in addition to the NYS Transfer Tax.
We like the charts from Hauseit.com best, please see below.
BEST ROOFTOPS FOR THE NICE WEATHER
Nice weather has finally arrived in New York City! With that said, we thought it was our responsibility to share our favorite rooftops to sip cocktails and enjoy the amazing views NYC has to offer.
Currently my personal favorite (Ronnie) is Eataly’s rooftop in Flatiron that has a seasonal restaurant called Serra Fiorita which in Italian means “flowering greenhouse”. Take a break from NYC hustle & bustle while walking into this whimsical getaway with flowers everywhere. The entire rooftop has transformed into the perfect photo op for instagram! The Serra Fiorita offers extensive Spritz cocktail menu, and vibrant seasonal plates infused with Italian springtime traditions. Make sure to order yourself the fried artichokes, you wont regret it.
Another go-to rooftop in Manhattan is the Royalton Park Ave. The Royalton Park Ave has picturesque views of the NYC skyline including the Empire State Building. I must mention the amazing brunch menu includes Nutella French Toast and Eggs Benedict.
Let’s get real about the real estate. Situated 30 stories above street level with breathtaking views across Midtown Manhattan and the iconic Chrysler Building is "Upstairs", the Kimberly Hotel's stunning penthouse level bar and lounge. With comfortable couches and a romantic feel its a must to bring all of your Tinder and Bumble dates- (you're welcome). The luxury apartments in this NYC neighborhood are a real estate broker’s dream!
Lastly, let's take a trip to Arlo in NoMad, Manhattan. With views of both downtown and uptown Manhattan. A.R.T. NoMad features an inventive cocktail list, with NYC-inspired cocktails like The Forest Hills, the Washington Heights and the Far Rockaway. It’s the perfect place to survey the city and take it all in while having a well-crafted drink and check out their infamous glass bottom floor!
PROPERTY OF THE MONTH - 132 4TH PLACE, BROOKLYN, NY
https://streeteasy.com/sale/1229933
When looking for a cash investor, there are plenty of options in the residential marketplace in New York. Most investors look to buy a condo, fill it with a good tenant and break even or make a small profit monthly to cover expenses of upkeep. Typical cap rates range from 1-3%. After a year of searching, Ronnie was able to secure a 6.5% cap rate for our investor with 132 4th place in Carroll Gardens, Brooklyn! (Trust us, real estate brokers are your best friend.)
This classic townhouse in NYC is currently being used as a school for languages/daycare with a tenant in place until 2022. If this house was being used as three different one bedrooms apartments, it would not be as profitable.
If you are looking to invest in the NYC real estate market, now is the time to take advantage of the surplus of inventory. Contact us today and let us know what you are looking for and our team will do the diligence necessary to find you the right investment opportunity!
Website: https://www.imagineitdoneny.com/
Instagram: @imagine.it.done
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