Krystyna Rachtan, Licensed Real Estate Broker
Phone (212) 991-8072 Email: firstname.lastname@example.org
NEW YORK HOME REAL ESTATE SERVICES, INC.
295 Madison Avenue, 12fl, New York, NY 10017
Conversely, condo buyers do pay RE taxes directly to their municipality, in this case NYC. In most financed purchases, the lender will require monthly contributions of the annual tax bill to be paid along with your monthly mortgage payment and those monthly tax contributions will be held by the lender in escrow and then the lender will pay the taxes twice annually to the municipality from that escrow account. In purchases without lender financing, the condo owner can usually choose one of a several payment options: annually, twice annually (most-common), or quarterly. I don't believe monthly payments are an option in the City of NY yet on virtually all condo listings, one will see a monthly figure listed for RET (RE taxes). This is simply so the consumer can estimate their total monthly costs and see if it feels manageable to them. But from a cash flow perspective, unless you are financing, your RE taxes will not be PAID monthly.
In coops the taxes are included in the maintenance which is normally paid monthly. have your agent check to see what proportion of the maintenance is tax deductible, can make quite a difference to your cost of ownership.
$6,000 (50% of the annual maintenance paid ) of your income is sheltered from taxation by claiming the tax deduction--just as you also deduct the taxes and mortgage interest paid to your bank if you financed your co-op purchase.