Expert: Hans Weber, Licensed Broker Associate - 3/8/2004

Question
My wife and I are considering buying a home in
the Poconos - new custom built, all inclusive package you often see advertised in the papers.

Assuming everything goes through when would we assume and start paying on a mortgage? Once building starts or after we move in?

Also we're considering keeping our apartment in Westchester because of the commute; but we would want to declare ourselves residents of our "home area" - in this case PA for tax purposes.  Is this possible and or commonly done?

FYI: In playing with the numbers we've found it cheaper to keep our apartment & buy a new 4 bedroom home in PA ($250K) than buy a home in Westchester (avg: 580K + 8 -10K taxes/year.)

Thanks

Answer
Hi Calvin,

Thank you for your question.

Yes, Westchester is expensive.  

Your construction loan mortgage should not have payments beginning until after the final certificate of occupancy is issued and the closing takes place.

Your new home can be your primary address.  You will be living there more than in New York.  I think you will still pay income tax in New York if you work here, but probably a commuter tax and I think Pennsylvania has a state income tax, so you should check with your accountant on this.

Good luck with your commute and enjoy the Poconos.

Hans