Combining 2 condo apts- RE tax consequences?

They'll be just the sum. If A is 1% of the condo and B is 1%, AB will be 2%.

Same with a co-op; if A has 1% of the shares and B has 1%, AB will have 2% and pay 2% of the co-op's tax bill.

What's different is when adding hall space. In a condo, the condo licenses you the space for $x and your PCI doesn't go up. If in a co-op, the co-op issues and sells you additional shares for which you pay maintenance.

NWT, I don't know if that's true. Condo taxes are set off a baseline of "what the unit would rent for" and it's possible that if you combine a 1BR 1BR to get a 3, your taxes will be more than the sum of the original parts.

I would investigate the taxes on other large units in your target building and see what they're like.

ali r.
DG Neary Realty

The city assesses the building, not the unit. E.g., your PV building has an assessed value of $108,000,000. To get your unit's market value, the city multiplies that by the Percentage of Common Elements specified in your unit's deed.

There's no other way the city could practicably do it. It can handle comparing one building to similar others in determining rent value per square foot, but it couldn't begin to start comparing one unit to another.

So, if you were to buy 6J and duplex it, your taxes would be 1+1=2 while the rent you could get might be 1+1=2.5 and the real value might be 1+1=2.1 or 3.1.

got it -- I stand corrected -- thanks NWT

ali

often shares(costs)/psf are higher in smaller apts than in larger in given bldge --where one combines two small apts, the new larger apt can have much higher shares(cost)/psf than existing apts in the building of comparable size to the new unit

do this math before you act--when you need to sell the combined units and your monthlies are much hiogher than comps in the same building, you will have a problem--even if you price accordingly, most savvy buyers, all else equal, would rather buy the apt where they pay more in sales price and have lower monthlies

front_porch: your understanding was correct in theory, but in theory only. NWT is right in practice.

Thank you NWT!

Ali g...with your Wall Street experience and offering consulting for a fee on matters such as this, I would have hoped you could provide correct information on simple question.

Do you indemnify consulting clients so if they were to take your incorrect advice, you would be liable for their losses?

Actually, Apt_Boy, my FREE advice "investigate taxes on other large units in your building and see what they're like" will lead to the correct answer.

Chip on your shoulder much?

ali r.
DG Neary Realty

Yes...but your basis to investigate was soley based upon your statement below that was Incorrect

"Condo taxes are set off a baseline of "what the unit would rent for" and it's possible that if you combine a 1BR 1BR to get a 3, your taxes will be more than the sum of the original parts."

Just because you say to "investigate" does not change the fact that you gave wrong information.

You should not only thank NWT for the correct info, but apoligize to freddie for misleading him. If you had just done that this would have been over.

And I can give incorrect FREE advise all day long as well...but you are much better at it...just a wolf in sheep's clothing