Cuomo to sign regulation to permanently freeze rents to either 1 or 2% (real estate, apartments)

[stormgal]

I don't know what this will do to the city's rent stabilized apartments, but I can see many rent stabilized landlords either sell or abandon their buildings as no profits will be made.

https://nypost.com/2019/06/12/cuomos...ousing-market/

[Javawood]

I hate how this article is written, it wreaks of political disgust. All I can say is we'll see.

[stormgal]

Here's another article:

https://www.nytimes.com/2019/06/12/n...gtype=Homepage

[mathjak107]

Originally Posted by stormgal

I don't know what this will do to the city's rent stabilized apartments, but I can see many rent stabilized landlords either sell or abandon their buildings as no profits will be made.

https://nypost.com/2019/06/12/cuomos...ousing-market/

yep, many who already made their money will walk away .strategic bankruptcy is all part of investing in real estate in new york and getting worse. it will be an option as most investment real estate is held in either corporation or LLC STRUCTURE.

once it is no longer profitable you move on to something else ..

[SeventhFloor]

[nightcrawler]

while I feel for renters, honestly, how do they thinkg LL's are supposed to keep thier buildings well maintained and in good working order if they never get rent increases.




Insurance, electricity, fuel and all those things that go into running a building cost money.


I get the accounting reports at the end of the year as a co-op owner and see what everything costs, trust me, it isnt a picnic for the landlords either. Everything goes up, and if the rents remain the same, wtf do the renters think the LL's can do?

[Tencent]

Oh boy....

We need to come to some kind of middle ground. If my current LL sells we may have to move. This place is pre-war old and will fall into disrepair very quickly plus my super will move out ASAP which means we will be f***ed

The only way we have to go from here is down. We will likely never encounter someone as attentive and who takes pride in their property as our current LL in NYC ever again.

[mathjak107]

Co-op and condo owners will get nailed too ... take a business like ours where we have 2 stabilized apartments left at break even rents .. we made our money already with all the other apartments we sold .... if these turn negative , then we will not subsidize the rents of our tenants and their kids who have succession rights ..it is an LLC , and we will merely let them default on the maintenance and the co-op gets them ... but that does the building no good because they have to subsidize the two tenants so maintenance will go up for the remaining shareholders but they get nothing in exchange since they can’t sell them ....

The whole system stinks and there will be a lot of bad fallout from this

[nybklyn]

This policy doesn’t work if they don’t do something with the property tax. The property tax raise almost every year, and it just keep on increasing.

[OyCrumbler]

Yea, this is a bad idea without some serious carveouts for specific cases. Housing affordability is a serious issue here, but a mansion tax, vacancy/pied-a-terre tax, foreign ownership tax, and tough fines or seizures of property for repeat offender landlords make a lot more sense to go along with upzoning and generally increasing supply as well as building better transit so people can live further out and encouraging businesses to locate in transit hubs outside of Manhattan, but this one is bad in how general it is.