Down To The Wire - Rent Control Laws Expire Next Saturday (foreclosure, mortgage)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Private equity won't buy something unless they can see a big upside. Under the new rent regulations, there is no upside.
You know who'll be interested? The slumlords. The guy who know how to buy a building and squeeze it. They don't care if it's legal, and they usually know how to get around the law.
Like I said, much will depend upon each individual property.
RS units in a busted building in a busted part of an outer borough, no, no one is going to want those buildings unless they can see an upside.
OTOH in Manhattan, some parts of Queens and Brooklyn those looking to assemble lots for redevelopment, and or can see themselves doing something with the building in question, *and* have the finances to stay in it for the long haul.....
In buildings were only a handful of RS units remain, and market will support there is co-op/condo conversion.
Scratch the above; new law states 51% of tenants who live in building must agree to a co-op/condo conversion. That just isn't going to happen unless you've got a very small percentage of RS tenants.
Private equity won't buy something unless they can see a big upside. Under the new rent regulations, there is no upside.
You know who'll be interested? The slumlords. The guy who know how to buy a building and squeeze it. They don't care if it's legal, and they usually know how to get around the law.
yep , it is hard to find buyers .. we are down to just an offer of 400k on over 2 million in value in 2 co-op apartments we have left .... we accepted because we want out .now we have to see if the deal flies ..
if not our LLC will likely keep them until the rents are negative then just walk away from them . the building can have them and the tenants in them .
Yeah, it is a total mess. It must drive investors mad being stuck in so much red tape. The ethics of it all is enticing to just be a gangster and make up your own rules. To forget all the rules. Literally evacuating tenants and then blowing the buildings up is possibly more ethical and cleaner business than the bureaucracy.
About 5 years ago there was a rental building in The Bronx.....on Webb Ave I think.... where the landlord had all the fire escapes removed. The city immediately emptied the building of all tenants because there was also no sprinkler system. In the following year the landlord gut renovated most of the building and put fire escapes back on. When the dust settled and the city gave the go ahead for people to move back in most of the tenants who had lived in the building for decades had moved on and never came back.Landlord got a big bunch of gut renovated apartments to rent out at market rate.
Goldfarb Properties...... they are experts at emptying buildings of those pesky long term tenants. Just google them and read about all of their other building emptying strategies and their portfolio of now "luxury" market rental buildings.
can you imagine if whatever job you took to earn a living forced you to stay with that company forever with no chance of getting an increase other then what the company decides regardless of how your expenses and family size increased ?
i think most of us would use every loop hole we could find to get out of that situation . so you can't blame these companies for doing just that .
had these two apartments been our only ones instead of the whole package we bought , we would just have declared the llc bankrupt and moved on .
Your talking about your rent regulated units in coops? I don't think much changed for you. You just have to wait until your holdout tenants die off. Then you could sell at market.
But by requiring 51% tenant approval, they've kill the concept of any future conversions.
Quote:
Originally Posted by mathjak107
yep , it is hard to find buyers .. we are down to just an offer of 400k on over 2 million in value in 2 co-op apartments we have left .... we accepted because we want out .now we have to see if the deal flies ..
if not our LLC will likely keep them until the rents are negative then just walk away from them . the building can have them and the tenants in them .
If I owned a rent regulated building in NYC, next opportunity I'd be challenging the property valuation for tax purposes, because the values of such buildings in NYC probably just dropped by half.
Wealthy, older Manhattanites benefit most from rent regulation
More affluent renters of regulated apartments received bigger discounts from market rate rent, a Wall Street Journal analysis found
it is a moot point , stabilization was never supposed to involve a tenants worth or income ... it is not some form of low income or even affordable housing program . it is solely to prevent landlords from rent gouging ...
the media likes to turn it in to some kind of affordable housing issue but it is not .. it merely may reflect the length of time you stay in an apartment and all the capital improvement increases . my wife is in ours 40 years ... but we are pretty close to market even after that long .. once you add in what they get for a garage spot we are pretty much at market . we have loads of improvements with a pool and tennis courts .
even earning 200k for 2 years does not matter unless the apartment is over 2700 a month
Last edited by mathjak107; 06-14-2019 at 08:59 AM..
it is a moot point , stabilization was never supposed to involve a tenants worth or income ... it is not some form of low income or even affordable housing program . it is solely to prevent landlords from rent gouging ...
the media likes to turn it in to some kind of affordable housing issue but it is not .. it merely may reflect the length of time you stay in an apartment. my wife is in ours 40 years ... but we are pretty close to market even after that long .. once you add in what they get for a garage spot we are pretty much at market .
"gouging" is such a subjective term - one man's gouging is another's market value, in fact it is the market value. But recent landlords are not 'gouging', they are pricing apartments in line with their costs. The ones that really make out have had the property for decades, some taking tremendous risks buying when the city was a dumpster fire. When they sell they walk away with all that profit, the new landlord is merely charging market rents which don't give him much of any profit at all - they expect to come out on top with the value going up over time for when they sell.
Now values will go down, a lot of small landlords are going to lose a lot of money
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
