What happens when Tax Abatements end?

Almost every new condominium that has been built in NYC over the past 15 years has whats known as a "Tax Abatement". Simply, this means that the incentives you to purchase in new developments by reducing to your real estate taxes on the property to practically nothing for ten years. After this period, the taxes on the condo go to current market rates.

Well, what exactly does this mean and should you be concerned?

Consider the apartment selected randomly from SteetEasy's Listings:
According to the tax statement, a junior-4 condo for sale at The Brompton at 205 East 85th Street is currently paying annual abated taxes of $3,234.
However, without the abatement taxes on this same unit would be approximately $13,000 annually.

So, moral of the story....if you buy in a new condo beware of when the abatement ends. It will not only effect your monthly budget but will have an effect on your resale value too as you get closer and closer to the end of its term.