Why is 264 Webster unique?

PH811 at 264 Webster Ave is a beautifully renovated 2-bedroom, 2-bathroom home and the beneficiary of a 421-a tax abatement. If you’re in the market for a condo or a co-op in New York City, you might have heard of a 421-a tax abatement, so, what is it?

The 421-a tax provision was created over 5 decades ago to incentivize developers to build affordable housing in NYC by providing them with a property tax exemption. 

Why does 421-a make buying more accessible?

1.) Reduced Property Taxes for 10 to 25 years 

Under the 421-a program, developers receive tax exemptions, and those savings are passed onto buyers. Put simply, 421-a significantly reduces your property taxes making your condo or co-op more affordable in the short term. 

2.) Long-term savings 

Since property taxes are a significant cost of home ownership in New York City, the abatement lower's a buyer's carrying costs, making the property more affordable and allowing for substantial cumulative savings.

3.) Increased purchasing power 

Lower taxes, makes it easier for first-time buyers to enter the market and gives buyer's increased purchasing power to afford more expensive properties. 

4.) Higher resale value in the short term 

Since your condo or co-op has a tax break for the first part of the term, you can sell it for a higher price if it is sold before the tax starts increasing.

5.) Investment 

Properties with 421-a benefits are attractive rental investments as investors benefit from reduced carrying and operating costs allowing for improved profit margins.