Has Manhattan Real Estate Appreciation Value MAXED OUT??? (New York, York: low income, condos)

[Dark of the Moon]

Originally Posted by A_Better_Bronx_2morrow

90K a year in salary (me and my wife only) We both have low salaries despite being owners...can't afford to give ourselves a raise.

Do you and your wife both work 40+ hours/week to maintain this one property?

[A_Better_Bronx_2morrow]

Originally Posted by squeezeboxgal

Do you and your wife both work 40+ hours/week to maintain this one property?

Yes we do. We converted a 1 bedrrom apartment into our office to be more productive and hands on in the building.

[mathjak107]

Originally Posted by SeventhFloor

who determines this "location multiplier"?

the markets do, just like the stock market..its the same kind of seeking its own level properties do when they seek their own value based on location..... homes do it allthe time, its merely based on what people will pay in any given market

[mathjak107]

Originally Posted by quelinda

actually the buildings throw off more than $100k in annual income for practically no work at all. this is a great retirement income if i ever heard of one (on top of pension, 401k and other investments). So no, you wont end up a millionaire on this model but living rent free and earning a great income for doing practically nothing is a good goal for retirement (and prior, depending on the timing). Point is, if it takes you 20 years to have a retirement income, what is wrong with that as long as you're not really losing money along the way.

And had he sold in the last few years, he would have earned over $2.5 to $3 million on a $300,000 investment made 18 years ago. Not a bad return imho.

no there is no tax advantage your in the hole for 2 out of every 3 bucks you spend. mortgage interest and taxes are expenses over and above the purchase price.. you are taking 3 bucks out of your pocket every month and staying in the hole for 2 of them as you dont get that back. thats not using anyone elses money but yours .whether you pull it from your pocket or the rent its just your own pocket

there are just as many rent stabilized as non stabilized apartments at this point , they are almost 50/50 and the majority of the unstabilized are not in 4 family and above they are in private homes or under 4 family as they are not what we are discussing here... almost all are under stabilization guidlines if they arent over 2,000 a month.

i would like you to find me a multi-family dwelling over 4 family that is a rental building and not stabilized.... every apartment would have to be over 2,000 for it not to be,

[SobroGuy]

Math you keep bringing up the same issue about tax advantage, that it does not exist and you are spending 3 to get one. But as I repeated earlier, when you a multifamily property, it is the Tenants that are paying your mortgage, interest, repairs, etc. So YOU are not spending anything, YOUR TENANTS are spending the money and YOU get the tax advantage. Why does this concept not make sense to you? YOU are not dishing out 3 dollars...your TENANTS are, and YOU receive the tax benefits. Simple concept...don't fight it.

[A_Better_Bronx_2morrow]

Originally Posted by mathjak107

no there is no tax advantage your in the hole for 2 out of every 3 bucks you spend. mortgage interest and taxes are expenses over and above the purchase price.. you are taking 3 bucks out of your pocket every month and staying in the hole for 2 of them as you dont get that back. thats not using anyone elses money but yours .whether you pull it from your pocket or the rent its just your own pocket

there are just as many rent stabilized as non stabilized apartments at this point , they are almost 50/50 and the majority of the unstabilized are not in 4 family and above they are in private homes or under 4 family as they are not what we are discussing here... almost all are under stabilization guidlines if they arent over 2,000 a month.

i would like you to find me a multi-family dwelling over 4 family that is a rental building and not stabilized.... every apartment would have to be over 2,000 for it not to be,

Correction...if you have a 5 family unit or less, by Law it is NOT rent stabilized. There is NO regulations and the owner can do whatever he wants.

If you have 6 units or more then it is AUTOMATICALLY rent stabilized and the owner has no choice but to follow the rent stabilization law. How sad!

[mathjak107]

sobro thats a bad business concept that its not your profits your paying it with. if you had no mortgage thats your profit money. since you do have a mortgage its coming back out of your pocket like an expense...

heres the question.. your in las vegas and your up 1,000 bucks , would you bet the same ,more or less than you would the night before?

ill give you the typical answere , id bet more, im playing with the house money

same question only this time your in vegas and you notice an error in your check book, you actually have 1,000 more in your checking account then you thought. what would you do?????

typical answere, id bet the same, thats my money in the checking account

correct answere is dummy its all your money,,, your just looking at it in different ways but its as yours in both cases as can be

the human brain is deceived alot by thinking because someone pays something that its not costing you...it sure the heck is.. every dollar thats spent comes right off money that would have been your profit.... if uncle same gives you back a buck your still minus 2 from your profit bucket...

[mathjak107]

Originally Posted by A_Better_Bronx_2morrow

Correction...if you have a 5 family unit or less, by Law it is NOT rent stabilized. There is NO regulations and the owner can do whatever he wants.

If you have 6 units or more then it is AUTOMATICALLY rent stabilized and the owner has no choice but to follow the rent stabilization law. How sad!

you are correct and i thank you..... point is people keep refering to the elusive non stabilized building like its easy to find one that exists

[A_Better_Bronx_2morrow]

Originally Posted by mathjak107

you are correct and i thank you..... point is people keep refering to the elusive non stabilized building like its easy to find one that exists

Unstabilized multi-unit apartment buildings (6 or more units) DON'T exist anywhere in NY.

You may have individual units within the stabilized building who are NO LONGER stabilized because the legal rent went over $2,000 but to have ALL units in the building de-regulated is UNHEARD of.

[SobroGuy]

Math everything is the profit...but in reality you WILL always have expenses....the question becomes what KIND of expenses do you want to have and who is paying them. So here is a scenario: You have a 5 year old child, and your wife divorces you, but you retain custody. Which case is best for you (strictly financially): Having the ex wife pay for everything to support the child, yet he still lives with you AND you get the tax deduction (claim the child on your taxes)? Or would you rather pay for everything and get the tax deduction? Clearly if you insist on keeping the child and supporting it with the idea of getting a tax deduction, you will be LOSING alot of money. But you are better off when someone else is paying the expense AND you get the tax deduction correct? You will always have expenses no matter what, so choose your expenses wisely so that OTHERS pay them AND YOU get the deduction. Those are the kinds of expenses I like versus just paying expenses (which is the actual profit loss). You can only have one of the two in the real world. This is a simple concept..but you are still fighting it. Dunno why.