Want to invest in real estate, but worried about high property taxes? Even in high cost and high tax states like New York, there can be attractive and profitable real estate investment opportunities, without having to deal with extreme annual property tax bills.
Here are just five of the ways you could invest in NY real estate, with less taxes…
1. New Construction
New construction properties tend to have much lower tax assessments at the beginning. Especially in the first year or two. Builders and developers often negotiate incredible tax breaks for new buildings and communities. On a smaller scale, new individual condo units and homes may carry lower property tax bills at the beginning. They key is getting out before those bills get supersized with new assessments.
2. Opportunity Zones
New Opportunity Zones have been established to encourage more revitalization and redevelopment. Investing in real estate in these zones can offer great tax breaks. Amazon’s new HQ2 in Queens is located in one of these O Zones. BisNow reports that there are 10 of these zones just on Long Island, with 8,300 acres ripe for development.
3. Job Creating Business Property
Amazon hit the jackpot with its new Long Island City deal that landed it $2.5B in financial bonuses. That number could grow much larger once promised property tax breaks are added up over the years ahead. These deals aren’t just limited to Amazon either. All types of businesses that create local jobs and create better uses for neglected properties can request similar grants and breaks.
4. Agricultural Land
The tax exemptions and breaks for agricultural land owners are some of the most attractive. This is why you may sometimes see a random cow right next to a new retail mall. The developer is still trying to claim agricultural tax protections.
5. Solar Farms
While there are a lot of debates about oversupply of housing, offices and retail today, the need for renewable energy and solar is only growing. We need dramatically more solar panels to produce clean energy. According to Land Mentors, private investors can get in on this too by leasing their property to solar developers who create small to large scale farms. New York also has some of the biggest tax breaks for solar. Those are made even better when you stack state and federal breaks on top of each other.
What will you invest in?