Trying to choose between a shiny new condo with resort-style perks and a resale that keeps monthly costs predictable? In Long Island City, you’ll see both options side by side, and each comes with tradeoffs that matter for your budget today and your exit strategy later. You want clarity on taxes and abatements, common charges, sponsor concessions, timing to close, and future resale potential. This guide breaks it all down so you can compare with confidence and focus on what fits your life and numbers. Let’s dive in.

New vs. resale at a glance

• New development

  • Often higher price per square foot with modern layouts and large amenity packages.
  • May offer tax abatements or PILOTs that lower initial property taxes.
  • Sponsor concessions like closing credits or temporary fee subsidies can reduce cash at closing.
  • Common charges can be higher due to full-service staffing and amenities.

• Resale condo

  • Pricing may be lower per square foot in older or simpler buildings.
  • Taxes are transparent with current bills available, and budget history is visible.
  • Common charges are often lower if amenities are limited.
  • Less likely to include large closing credits, but sellers may negotiate price or minor concessions.

If you prioritize the lowest recurring cost, resale tends to be more predictable. If you value new finishes, amenities, and warranties, new development may be worth the premium, even if monthly costs are higher.

Taxes and abatements in LIC

LIC has seen a wave of new construction over the last decade. Many buildings have used tax programs, but not all. The details matter and are specific to each project.

What abatements mean for you

• Some condos received multi-year property tax relief under programs such as 421-a or other arrangements like PILOTs. These can significantly reduce your property taxes during the benefit period.
• Abatements end. When an abatement expires, your taxes can increase materially. You should model the monthly cost both during and after the abatement.
• Transfer rules vary. Some abatements transfer to new owners, while others have restrictions. You need the exact terms for the specific unit.

How to verify tax details

• Offering plan: The developer’s offering plan will disclose whether the unit has an abatement or PILOT, how long it lasts, and estimated taxes.
• NYC Department of Finance records: Once the building is in the system, you can review current tax bills and any recorded abatements for the unit.
• Certificate of Occupancy: Confirm that a final CO has been issued and tax billing is properly set up.
• Attorney/CPA review: Because these programs and rules change, have your attorney and a tax advisor review the offering plan and tax records before you commit.

Monthly carrying costs

Monthly ownership cost includes your mortgage payment, property taxes, common charges, utilities not covered by the HOA, and any special assessments. The mix looks different in new versus resale buildings.

What drives common charges

• New development: Full-service staffing, large gyms, pools, lounges, roof decks, children’s rooms, and on-site parking raise operating costs. That usually results in higher common charges.
• Resale buildings: With fewer or simpler amenities, they often carry lower HOA fees. You can also review several years of budgets and assessments to see how costs have trended.
• Reserves and assessments: New buildings may start with lower reserves. Resales show a history of reserve funding, capital work, and special assessments.
• Utilities and efficiency: New systems can be more efficient, but savings may be offset by operating costs for amenities.

Model 5–10 year costs

• Use actual tax bills for resales or offering plan projections for new builds.
• Add common charges, mortgage payments, and typical utilities to estimate your total monthly spend.
• Build a post-abatement scenario for new development. Consider a range in which property taxes rise sharply when benefits end.
• Ask management for comparable units’ operating cost history to validate your assumptions.

Amenities and concessions

Amenities can elevate your day-to-day experience, but they impact your budget. Concessions can help you get in the door, but they rarely change long-term costs.

Sponsor credits in new builds

• Common incentives include closing cost credits, temporary common charge subsidies, promotional pricing, or upgrades.
• These credits lower your cash at closing but usually do not reduce the contract price or ongoing monthly expenses.
• Lenders limit certain concessions. Your loan program may cap the size or type of credit. Confirm with your lender early.
• Temporary fee subsidies end. Know exactly when you start paying the full HOA bill.

Resale negotiation dynamics

• Sellers can offer credits or cover closing costs in some market conditions, but large credits are less common than in sponsor sales.
• Price negotiations and inspection-related credits are typical. Make sure any credit is properly documented in the contract and closing statement.

Timing, contracts, and resale potential

Timing may be a deciding factor if you need a certain move-in date or loan rate lock.

Typical closing timelines

• Resale condos: Often 30 to 60 days from contract to close, subject to loan underwriting and standard searches.
• New development with a Certificate of Occupancy: Timelines can be similar to resale, but depend on sponsor processes and building turnover.
• Pre-construction: You sign now, close later when the CO is issued. That could be months or years, depending on the construction schedule.

Contract differences in new builds

• Deposits: Sponsors may require staged deposits before completion. Refundability terms vary.
• Sponsor control: Sponsors often control the board initially and may retain rights regarding unsold units.
• Warranties: New condos usually include limited construction warranties. Know what is covered and for how long.

Resale and liquidity in LIC

• What drives resale value: location within LIC, transit access, building reputation and management quality, reserves and assessments, tax status, unit layout, floor height, exposure, and views.
• New development dynamics: When many units deliver at once, supply can rise quickly, which can weigh on prices. Assignment rights and sponsor restrictions matter if you plan to resell before closing.
• Resale building dynamics: Established budgets and transparent tax history can make your future sale more predictable to buyers.

Buyer checklist for LIC condos

Use this list to compare apples to apples before you make an offer.

• Documents to request

  • New development: full offering plan, declaration and bylaws, proposed budget and common charges, tax abatement/PILOT schedule, sponsor concessions, reserve funding plan, estimated closing statement, Certificate of Occupancy, list of unsold units.
  • Resale: current HOA budget, last 2–3 years of financials, recent tax bills, board meeting minutes, reserve study if available, history of assessments, management contract.
  • Both: unit deed and block/lot, ACRIS records, DOB permit and CO status.

• Questions to ask

  • Is there an active abatement or PILOT? How does it transfer and when does it expire?
  • How are taxes billed and collected for the unit?
  • What do common charges cover? Are utilities included? What is the reserve balance?
  • What sponsor concessions exist and how are they structured? Any lender limits?
  • For new builds: CO timeline, number of unsold units, available warranties.
  • For resales: any pending or recent capital projects and planned assessments.

• Financial modeling

  • Build current and post-abatement tax scenarios.
  • Add mortgage, HOA, and utilities for a total monthly figure.
  • Run a 5–10 year cash flow and consider how different cost paths affect your net at resale.

Red flags to watch

• New building budgets with very low reserves and weak funding plans.
• Ambiguity around the abatement in the offering plan or verbal promises that contradict the plan.
• Frequent or large assessments in a resale building, active litigation, or unresolved code violations.
• Significant sponsor-held inventory after closings, which can affect governance and future resale demand.

Ready to compare a short list of LIC condos side by side, including current taxes, HOA budgets, and realistic post-abatement models? Reach out to Alan Mann for a practical, data-driven walkthrough that fits your timing and goals.

FAQs

What is a condo tax abatement in LIC and how long do they last?

• Some LIC condos received multi-year tax relief under programs such as 421-a or PILOTs. Terms vary by building and unit. Always review the offering plan, confirm details in NYC Department of Finance records, and have your attorney or CPA verify transfer rules and expiration dates.

How do sponsor concessions affect my out-of-pocket costs?

• Sponsor credits can offset closing costs or temporarily reduce common charges, lowering your cash needed at closing. They rarely change your ongoing monthly costs long term. Lenders may limit certain concessions, so confirm early.

Which has lower monthly costs, new or resale condos in LIC?

• Resales often have lower and more predictable monthly costs because taxes and budgets are transparent. New buildings may start lower if there is an abatement, but you should model the higher post-abatement taxes to see the true long-term cost.

How fast can I close on a condo in LIC?

• Resales and completed new units with a Certificate of Occupancy often close in 30 to 60 days, subject to loan approval. Pre-construction closings occur only when the building is completed and the CO is issued, which can take months or years.

What should I review before making an offer on a condo?

• For new builds: the offering plan, budget, tax schedule, concessions, reserve plan, and CO status. For resales: HOA budget and financials, tax bills, board minutes, reserves, assessment history, and building records. In both cases, confirm details with your attorney and lender before you sign.