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by SeanAnderson 1139 days ago
No, I am not planning on owning commercial, but I am interested in avoiding having taxes raised on me to fill a budget deficit. Taxes on commercial real estate generate a significant amount of revenue, commercial rental agreements are usually ~5-7 years, and so, at least in SF, there is a looming wave of devaluations which has yet to be realized. The city already has an estimated 800M budget shortfall without assuming commercial real estate devalues by 50%. When that happens the only quick fix is to bleed money from the populace. If commercial buildings aren't being used in NY then this will also occur there.
2 comments
CydeWeys 1139 days ago
I think you're being too speculative here. If you're really trying to minimize paying taxes, then you should be moving to a state with no income tax, don't buy property there (because states with no income tax tend to make up for it with high property taxes), and don't live in a city because cities will have local taxes. But you move to NYC, you do so because NYC is awesome and living here is great. I wouldn't pay less taxes to live in the middle of nowhere.
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sangnoir 1139 days ago
> ... you should be moving to a state with no income tax, don't buy property there (because states with no income tax tend to make up for it with high property taxes)

Remember not to rent too, otherwise landlords would passthrough the high property to you.

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CydeWeys 1138 days ago
This isn't true in many places for lots of reasons. E.g. in California the owner could easily have grandfathered-in low property tax thanks to Prop 13, that you as a new housing purchaser couldn't benefit from. Or there could be NY-style rent regulation that controls the allowable rental price and doesn't take property tax into consideration at all. Or it could simply be that property taxes go up in a neighborhood (which you'd have to pay if you owned) but that rents do not, for whatever reason; this happens all the time.

As a renter, all you care about is what the rent is. If the rent is good, then you're good. Property tax is very much NOT priced into buying a property, and is an ongoing expense to worry about that moves in way that rent does not.

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sangnoir 1138 days ago
> This isn't true in many places for lots of reasons.

Fair point, but are any of those places in states with no income tax? Thise states have to make up for that loss of revenue somewhere.

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SeanAnderson 1139 days ago
Yeah, I think you're right. Thanks for the feedback. :)
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baremetal 1139 days ago
I thought they had a surplus just a few years ago.

Odd.

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