Property Grunt

Friday, April 29, 2005

Stupid Broker Tricks and mortgage tax news

Any brokers have a desire to embarass themselves in public? C'mon, we are all hams.

2nd Annual Westside Talent Night

Wednesday, May 11, 2005
Landmark On The Park
160 Central Park West
7:00 P.M. - 9:00 P.M.

I am so not there.

For all of you new property owners out there I just want to thank you for doing your part in providing financial support to the subways and other forms of public transit.

To fund part of the MTA five-year capital plan, the recently-adopted New York State budget increased the mortgage recording tax in the 12 counties served by the MTA.

The five counties in New York City are Bronx, Kings, New York, Queens, Richmond; the seven other counties are: Nassau, Suffolk, Westchester, Rockland, Dutchess, Orange and Putnam.

The mortgage recording tax increase is five cents for every $100 of debt secured by a mortgage.

Here is a list of the new rates for New York City:
All mortgages securing less than $500,000: New Rate 2.05% Old Rate 2.00%

Mortgage on 1-3 family homes, including individual residential condominiums, securing, $500,000 or more:
New Rate 2.175% Old Rate 2.125%

All other mortgages securing $500,000 or more:
New Rate 2.80% Old Rate 2.75%

In Westchester and Rockland the new rate is 1.3%; Nassau, Suffolk, Dutchess, Orange and Putnam the new rate is 1.05%. The new rate in the City of Yonkers is 1.8%.

The increase in the mortgage recording tax takes effect June 1, 2005.

I am quite sure that the majority of deals being closed in Manhattan fall in the $500,000 or more range. Want to avoid the tax? Close before June.