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Old Posted Sep 9, 2015, 1:50 AM
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Quote:
Originally Posted by st7860 View Post
The 8 condos are having their fees and taxes paid even empty so that keeps the costs lower for everyone else. People living in them pay no taxes when selling the units.
They would be paid even if somebody lived in them.

If we assume that there would be fewer units overall due to less purchasing activity (investors turned off by requirement to maintain occupancy in a unit) and therefore higher property tax rates, this could be offset by a lower lifetime interest expense on a mortgage due to the property value being lower. Remember that a $1m property pays $800 per $100k in value in property taxes, but $3000 per $100k in value in interest expenses (mortgaged).