However, the scheme never died: According to The Real Deal, the New York State Assembly and Senate versions of the pied-a-terre tax bill have been made identical; if they pass, the next step is Governor Cuomo's desk.
While the mansion tax is a one-time payment at closing, the pied-a-terre tax would be a high annual tax for secondary residences. Proponents see it as a way of generating much-needed funds for the city’s infrastructure and transportation systems, especially at a time when New York did not receive federal aid to close a massive budget deficit caused by the pandemic shutdown. And while Governor Cuomo has expressed opposition to raising income taxes on New Yorkers' primary residences, it is uncertain how warm he is to the idea of a pied-a-terre tax.
Regardless, the concept of having a part-time home in the city will always endure given the city's enduring position as a major global destination for business and tourism. This article explores who is likely to buy a pied-a-terre, where they should look, and the financial and interview plans they need to make. We also interspersed several active listings in Manhattan that are ideal as convenient secondary residences.
Who buys a pied-a-terre and why?
What do bicoastal actors and business executives have in common with empty nesters and local suburbanites? They are all in a position to live full-time elsewhere, but need or want to be in New York so often that it can be more economical to invest in the real estate market than spend money on a hotel every time one wants to visit.As nice as it can be to rack up loyalty points, even the most dedicated concierge cannot personalize the space the way one’s own photos and possessions can. And at a time when health and hygiene are on everyone's mind, there is something reassuring about the thought that no one else was staying in the pied-a-terre before the owner's arrival.
Where to search
In some of New York’s newest condos, luxury amenities like concierge service, state-of-the-art fitness centers, pools, and roof decks can make even the most mundane trip feel like a stay in a five-star hotel. Indeed, the residential component of some of the city’s most luxurious hotels allows pied-a-terre purchases that grant access to all the hotel’s amenities and services.At the other end of the scale, some pied-a-terre buyers look to small units outside the city’s glamour areas. These can be a bit more spartan than their luxury counterparts (think Murphy beds or kitchenettes as opposed to full kitchens), but this will show up in a sticker price that allows people to own a city home without breaking the bank. This also might be beneficial to those seeking a pied-a-terre for business purposes - while these buildings aren’t close to the city’s hot spots, they tend to be near largely commercial areas.
