There was an article in the Cleveland Plain Dealer this morning about tax abatments as a tool that builders and developers require if they are to continue building in the city of Cleveland... click here to read the article:

http://www.cleveland.com/plaindealer/stories/index.ssf?/base/cuyahoga/116963163281500.xml&coll=2

I think that tax abatements are an artificial driver of the real estate market.  Much like existing construction competing against new construction in the same development, these tax incentives will hurt re-sale when the abatements begin to run out... they last only 15 years.  So how will a house which is 15 years old and has no tax abatement remaining compare against a home that is 6 years old and has 9 years of abatement remaining... I think "not too well".

Let me know your thoughts!

 

2 Comments on Tax Abatements in Cleveland's New Construction market

I read that this morning as well.  The City of Cleveland would be making a mistake by not allowing tax incentives for new construction.  It's working so far... if it ain't broke, don't fix it!

01/24/2007 09:54 PM by Matt Hayes (Keller Williams Greater Cleveland West)

I guess that they will just have to keep tearing them down and building them up again.

08/12/2007 06:23 PM by Nathan Rodriguez (New Wave Lending Corp.)

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Real Estate Agent: Kevin Cahill (Keller Williams Greater Cleveland)
Kevin Cahill
Cleveland, OH
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Keller Williams Greater Cleveland

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Real Estate information for Shaker Heights, Cleveland Heights, Shaker Square, and Cleveland, Ohio. Lake Erie frontage, vacation homes and cottages. Condos, apartment buildings, duplexes, doubles and investment income producing properties.

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