Wholesaling Properties In The New Tax Free New York
Last week saw New York officially launch its new tax free zones.
So what does this mean for wholesaling properties in the Empire State? Few thought the new plan would get passed, but it has and now there are large chunks of the state of New York which offer incredible tax free opportunities.
So what's going on? What real estate trends are emerging in the state, and what tips can help wholesalers capitalize on the current market? New York's Gov.
Cuomo has now established tax free zones around SUNY campuses.
According to a recent release by the state's comptroller's office this now means 25 -60% of property in some areas is now free of income, state and property taxes.
This clearly not only huge opportunities for starting new businesses and creating jobs but also for flipping real estate for higher profit margins and net income.
Of course for those investors based outside of NY it can be confusing to make sense of what is going on in the market and where the best opportunities are.
This is especially true given that the majority of the headlines all focus on massive Manhattan condo and office deals.
There are three current trends which should be of special interest to those wholesaling properties.
The first is dramatic commercial real estate activity.
This ranges from new trends in modular apartments to coworking office spaces.
The important point here is that local government is busy trying to plan shifts in zoning and in many cases to create buffers between residential and commercial activity with mixed use developments.
This could be a hot niche for those interested in it.
The second and perhaps most notable trend is in high end home flipping in the Hamptons.
Hamptons homes have been selling for serious discounts (as much as 50% according to 3rd quarter figures).
Now they are being flipped as retail properties with investors revamping properties in the $4 million price range and putting them back on the market for $8 million to $14 million.
At the same time there continue to be pockets the state still deeply entrenched in the foreclosure crisis.
This means foreclosures homes and REOs being abandoned and which are ripe for the picking for savvy investors.
The key is finding out where they are, and securing them.
On caveat, which can bring pain or more profits is NY's high property taxes.
Outside of the tax free zones many are still being way overcharged for property taxes based on old values.
Those that can get in and file appeals create can easily add five figures to profit margins and create deals others are missing out on.
So what does this mean for wholesaling properties in the Empire State? Few thought the new plan would get passed, but it has and now there are large chunks of the state of New York which offer incredible tax free opportunities.
So what's going on? What real estate trends are emerging in the state, and what tips can help wholesalers capitalize on the current market? New York's Gov.
Cuomo has now established tax free zones around SUNY campuses.
According to a recent release by the state's comptroller's office this now means 25 -60% of property in some areas is now free of income, state and property taxes.
This clearly not only huge opportunities for starting new businesses and creating jobs but also for flipping real estate for higher profit margins and net income.
Of course for those investors based outside of NY it can be confusing to make sense of what is going on in the market and where the best opportunities are.
This is especially true given that the majority of the headlines all focus on massive Manhattan condo and office deals.
There are three current trends which should be of special interest to those wholesaling properties.
The first is dramatic commercial real estate activity.
This ranges from new trends in modular apartments to coworking office spaces.
The important point here is that local government is busy trying to plan shifts in zoning and in many cases to create buffers between residential and commercial activity with mixed use developments.
This could be a hot niche for those interested in it.
The second and perhaps most notable trend is in high end home flipping in the Hamptons.
Hamptons homes have been selling for serious discounts (as much as 50% according to 3rd quarter figures).
Now they are being flipped as retail properties with investors revamping properties in the $4 million price range and putting them back on the market for $8 million to $14 million.
At the same time there continue to be pockets the state still deeply entrenched in the foreclosure crisis.
This means foreclosures homes and REOs being abandoned and which are ripe for the picking for savvy investors.
The key is finding out where they are, and securing them.
On caveat, which can bring pain or more profits is NY's high property taxes.
Outside of the tax free zones many are still being way overcharged for property taxes based on old values.
Those that can get in and file appeals create can easily add five figures to profit margins and create deals others are missing out on.