What is a residential tax abatement and do you have to end up paying some1 back in the end?

Question

im working with lynnhaven development group thats helping me buy a home on the purchase agreement it mentions a $10,000 tax abatement through a program called afford a home in cleveland ohio. I just want to make sure that this abatement is something thats gonna help me and not hut me

Answer 1

Many of the available abatements in Cleveland are for original owners ONLY.  In otherwords, you as the first buyer from the developer will get the abatement, but if you need to sell, any second owner will NOT.  Therefore, potential buyers, when you need to resell, will be be more likely to buy a NEW home, so that they are the original owner and will get the abatement, rather than buying yours, where they will NOT get the abatement.  This may cause you grief in your resale, as well as a disappointing resale price.  An abated property can be a beneficial purchase, just  make sure you know what the abatement says and the circumstances involved.

Answer 2

a tax abatement is a relief or reduction in tax. its a good thing, make sure everything else is in line. NO you do not pay it back.

Its to get more people to be able to afford it.

Answer 3

You are right to worry. Most of them have provisions to stop you from "flipping" the house.  There are many pay-back provisions.  I usually avoid these loans.