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Old 06-21-2011, 06:38 PM
 
Location: Homosassa, Florida
2,200 posts, read 4,117,191 times
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With all the high priced apartment condo buildings in New York City. With all the building owners wealth stacked up over the years. How does that cash flow enter back into the real new york state? Do the wealth owners care about United States economics? I think New York City people should develop more on the low end of the spectrum. Cash Flow to the arts and public school systems providing better field trips. And better quality new buildings YMCA.
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Old 06-21-2011, 08:09 PM
 
1,319 posts, read 4,078,661 times
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Quote:
Originally Posted by Bob Blockus View Post
Do the wealth owners care about United States economics?
Yes, but only to make themselves further rich. Except for very few ultra rich such as Warren Buffet, Bill Gates, etc who have committed to donating their vast wealth...most are more concerned with making themselves more money. Personally I think most of average joe fall into this category too except the ways and means to make the money is different and limited compared to the wealthy so most of us can't do it.
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Old 06-21-2011, 08:35 PM
 
Location: Homosassa, Florida
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YMCA Buildings new ones should once again spring up throughout New York City. I am sure that would help a lot of people out short term and long term. Think of all the recreation built inside and small fee per night rooms. People with unemployment income checks can stay positive throughout hot long summers and cold harsh winters. The benefits from YMCA.
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Old 06-23-2011, 09:27 PM
 
1,494 posts, read 2,598,442 times
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Quote:
Originally Posted by Bob Blockus View Post
With all the high priced apartment condo buildings in New York City. With all the building owners wealth stacked up over the years. How does that cash flow enter back into the real new york state? Do the wealth owners care about United States economics? I think New York City people should develop more on the low end of the spectrum. Cash Flow to the arts and public school systems providing better field trips. And better quality new buildings YMCA.

Cash flow enters back into the state and city via the anal rape known as "real estate taxes".
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Old 06-25-2011, 11:05 AM
 
Location: Brooklyn, NY
1,271 posts, read 3,060,267 times
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Originally Posted by Alkonost View Post
Cash flow enters back into the state and city via the anal rape known as "real estate taxes".
LOL. NYC has really low property taxes.
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Old 06-25-2011, 11:43 AM
 
2,848 posts, read 7,264,958 times
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Originally Posted by Bob Blockus View Post
I think New York City people should develop more on the low end of the spectrum.
It's more about demand than the quality or type of construction.
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Old 06-25-2011, 02:12 PM
 
1,319 posts, read 4,078,661 times
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Originally Posted by BrownstoneNY View Post
LOL. NYC has really low property taxes.
And there's tax abatements that gets handed out as well.
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Old 06-26-2011, 04:04 AM
 
96,860 posts, read 96,106,628 times
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Quote:
Originally Posted by Bob Blockus View Post
With all the high priced apartment condo buildings in New York City. With all the building owners wealth stacked up over the years. How does that cash flow enter back into the real new york state? Do the wealth owners care about United States economics? I think New York City people should develop more on the low end of the spectrum. Cash Flow to the arts and public school systems providing better field trips. And better quality new buildings YMCA.

everything always looks green from the outside as an outsider.

you have not a clue as to how much is paid on a sale in nyc taxes and fees. ill bet that alone is more than even an upper middle class family earns in a year..

As an owner and seller of some high end nyc co-op apartments ill tell you how it re-enters the city, which it does in a huge way. we are just 3 family members that do this ,not some mega buck corporation.

i can tell you when you sell the property the city income tax is killer. its a tax you wouldnt even pay if it was in long island .

not only does the sale of a co-op apartment trigger the amt tax on a federal level for us but it carries over to the state and city taxes as well and its a huge number.

depreciation is recaptured also to the tune of 25% as well and goes right to that city tax. the sale of a 1 million dollar apartment can bring the state local taxes to about 125k because that sale triggers other taxable events on all your other income as well...


now the fun starts. that sale now triggers the amt tax and it extends that tax penalty through all our other income including the salarys from our jobs. you cant even write off real estate taxes if you own a home. because of it.
bet you didnt even know that.

we find over 40% of a sale goes to federal tax,amt tax , state and local taxes and then there is the almost 10% in broker fees, ny transfer fees and closing costs. oh i forgot the 50-100k we have to pay a tenant to buy out their lease so we can sell.


like every profession ,for those who arent in it and look from the outside it looks like a gravey train. its not . it has had huge expenses and aggrevation .it took decades of expenses and aggrevation just to hold it until we could get the tenants to sell their leases or pass away. the rent barely kept up with expenses all those years but our light at the tunnel was to eventually sell those apartments.

when we started this venture decades ago we had no idea that light at the end of the tunnel would end up being the train. the taxes and increased expenses coupled with the stabilized rents were more than we bargained for but like any investments thats the way it goes so im not complaining.


to be honest considering these apartments over look central park and are next to lincoln center and command a big sale price when all is said and done after decades of having money tied up and expenses on the property which has rent stabilized tenants still in it we most likely could have done better in nothing more than trouble free mutual funds.


the point is the city gets a ton of money both through the years as income tax on the rent roll and then the mother load payoff when sold.

if they want to put up low income housing or subsidized housing with the tax money thats their choice but nothing i would ever think of getting involved with. we have enough trouble making the high end stay profitable..

Last edited by mathjak107; 06-26-2011 at 04:53 AM..
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Old 06-27-2011, 07:47 PM
 
Location: Manhattan
24,499 posts, read 34,329,489 times
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I guess that's why there's such a shortage of landlords in New York City.
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Old 06-28-2011, 02:48 AM
 
96,860 posts, read 96,106,628 times
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i dont know about a shortage of landlords but there is certainly a shortage of nice new rental buildings.

real estate is just another profession like anything else. you can make money but its not the gravey train everyone thinks. those taxes and fees can wipe out half of the sales prices if there is no cost basis left from depreciation..
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