When considering a new home in downtown Albany, many people think that they will have to rent an apartment. But living downtown doesn’t mean that you have to rent. The new condominiums at 17 Chapel are a better housing alternative than throwing away money each month on apartment rent.
A property investment in an up and coming area such as Albany makes sense in this economy, and when you consider the cost of a new home, it’s important to look beyond the purchase price. You also need to weigh property taxes as part of the budget.
Owners of the new condos at 17 Chapel get a 12-year tax break, making luxury living even more affordable. Taxes are as low as $672 per year / $56 per month.
A fully-assessed house in Albany is taxed at $33.72 per $1,000 of value. This means that the owner of a $300,000 home pays $10,117 in taxes. By comparison, the owner of a Ten Broeck model condo home at 17 Chapel — valued at $333,200 — would normally owe $8,427 in taxes. Why is this lower? Condos in Albany are valued at a 25% discount.
This discount is just the beginning of the tax savings at 17 Chapel. Our residents will also receive a tax abatement that leads to tremendous savings — $75,355 to be exact for owners of the Ten Broeck model, and more on our larger floor plans.
Under the City of Albany’s 485-a tax abatement program, structures such as 17 Chapel that have been converted from commercial to residential use get a special break. The assessed value of the property is held in place for the first 8 years. Beginning in Year 9, 20% of any assessment value increase phases in each year until the 13th year, when the property taxes based on assessment is paid in full. This translates to a 12-year tax break and tremendous savings. You’ll benefit from the property values without being whacked by high taxes — so it’s worthwhile to consider an investment in a condo rather than in rent payments for an apartment.
For more information, see the breakdown of the tremendous tax savings on our condos.