do the charge more real estate tax for second home bought for investment?

Asked by jlee.aprilgreen, Jericho, NY Sat Jul 27, 2013

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Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Sat Jul 27, 2013
No, the RE tax and even property taxes are the same (each property is different) regardless if you're buying as a primary residence, second home or investment property. The only thing that differs is that in a primary residence you're entitled to property tax exemptions, also known as the STAR program, on second and investment homes you will not be.

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Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648 Cell
(516) 740-4478 Office
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Thomas Moser, Agent, East Northport, NY
Sun Jul 28, 2013
You would not be entitled to the STAR exemption on the investment property so, in effect, you will be paying higher property taxes.

Tom Moser
Keystone Realty USA

Long Island's Commission Rebate Realtor
0 votes
William Hold…, Other Pro, Jericho, NY
Sun Jul 28, 2013
You should seek the advice of a qualified RE investment planner, because what you pay in taxes can vary greatly depending on how your deal is structured. For example, the transfer tax and mansion tax (if applicable) are halved if you are investing through a real estate investment trust (REIT).
But this, and the STAR exemption, are relatively minor when considering the bigger tax picture, which hinges on property value after improvements (new taxable value) and capital gains.
Depending on your objectives (flip or hold) your investment planner should be able to help you come up with a strategy that minimizes your tax liabilities.
In Jericho, a number of people over the past few years have purchased investment homes in the mid sixes, spend a third of that again remodeling with the expectation of selling close to the million dollar mark. Unfortunately, some of them failed to take into account the tax hike that accompanies assessment after a major remodel, which in turn has a negative effect on selling price, while at the same time increasing carrying costs. This can be a dangerous trap if the investor is already stretched thin by an over budget renovation or other unforeseen costs. Do your research carefully and account for cost overruns. Seek professional advice on how to minimize your liabilities and risks.
0 votes
Gina Lollo, Agent, Setauket, NY
Sat Jul 27, 2013
As mentioned, real estate tax is dependent on the property, not necessarily the owner. You will not qualify for the STAR exemption unless it is your primary residence though. Hope this helps.

Gina Lollo, MA
Certified Buyers Agent
Short Sale Specialist
Gladstone Group
(631) 335-7078
0 votes
Abu Musa, Agent, New York, NY
Sat Jul 27, 2013
Property tax depend on your property. For second home rate will not be changed.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Sat Jul 27, 2013
Generally no additional taxes, however the STAR rebate can only be applied to primary residence...
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