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You are wrong. Approvals are re-thought and re-cast all of the time given a myriad of complexities.
People should make note of which positions resort to defensiveness and how quickly.
Methinks the lady doth protest too much.
i disagree , you need to file well before construction. you can't tell us they put up these buildings and they were open market rentals and now they are not.,
by the time you see construction the die is cast. no one just decides to go 421 on the fly.
Last edited by mathjak107; 08-19-2013 at 11:24 AM..
Entirely untrue. To the extent that "investors" are already sinking enormous energy into getting around regulations and maximizing profits within the programs for which they opted. The "mixed-income" building, usually in a crap neighborhood - oops, I meant "up and coming" neighborhood - is increasingly the choice.
Why would small landlords go for the tax exemption programs. They cannot afford the initial investments and they won't be approved.
small landlords could partake , there are all kinds of loans,grants and money available for special projects from all kinds of organizations and city and state projects..
most small landlords ,self included would not partake in anything sponsered by the city that can be altered by politics again.
I know a million people, I feel at times, and talk to many different people and I could not even estimate this.
I have mostly encountered middle-income-ish, $40,000 - $80,000, small families.
There is this hysteria that it's all the wealthy scamming the system - hype, and patently false.
Our family lives in a rent stabilized apartment. We been living in this apartment for 25 years. Our rent is 900 dollars per month and the market price is somewhere between 2.5x to 3x the amount. I know my landlord has asked other tenants who lived in my building to move out and 1 of them did because he offered a sum of money for them.
My first question is, is this legal to receive money from the owner of the building to move out? I read it is online and this is called a buyout.
My second question is why would anyone move out if the rent is stabilized? I understand why the landlord wants you to move out because your rent is stablilized and they would be collecting 2300/month in rent as oppose to your 900/month in rent. But if we want to rent the same place, it would cost 2.5x to 3x the amount. Thus the rent in 1 year is 10800 currently but if you rent the same apartment its 31200.
Assuming we move to another location, it still would cost 2000/month for the same location at the very minimum. He really wants us to move out. But if we do, wouldn't the amount we receive have to be a high amount since rent stabilized apartment is saving us 1400/month?
We have no plans to leave the apartment but the landlord keeps asking us many times. But if we then decide in the future to move, how much is the right amount? I can't imagine it worth it because if we get a similar apartment for say 2000 per month in another place, we paying an extra 1100 per month which is 13000 per year. I read online that most buyouts are usually 65k max but for our apartment, how much should a buyout be relative to your rent and the market value? I know they have to spend money to renovate the apartment so that will cost them money. But from what i read if an owner makes back their buyin in 2 or 3 years, then its gravy for them and buyouts are very good deals for them and almost never the renter of the stabilized apartment. Is this true?
Landlord first offered us 5k and then 10k and then 12.5k. We told them we weren't interested in moving at all so he went up and we told them we still was not interested. I thought in my mind, why in the world would we accept 5k when its going to cost us more than that if we go and get another similar apartment and then pay over 5k in total rent difference in just 4 months. We have no interest at the moment to leave but if we do in the future, is there an amount that is right? We know someone that lived a few blocks from us who live in a rent stabilized apartment and told the landlord he was moving and wanted his security deposit and the landlord said okay immediately. He did not know anything about the buyout and that he could have gotten money for it since he was already planning to move so the landlord was definitely happy he was moving. The reason why he was living in the rent stabilized apartment was because it was under his fathers name and they didn't live there anymore and it was just him.
I read a thread about this and ppl say this is gaming the system but how is it gaming the system if you don't plan to move? I assume its only gaming the system if you plan to move soon and just want the extra money? Would you say the person that we know who told the landlord he was going to move out after his lease ends and just wants his security deposit back stupid for not getting a buyout? Obviously he had no clue about it and was honest and the landlord was very happy but was it kinda foolish for him to not ask for one?
Also is there a way to have the landlord not keep asking us this? He spoke to us multiple times trying to convince us and we said we weren't interested many times. I thought even if we were interested, isn't the buyout he is offering us kind of a joke?
$100,000. - $125,000. is the going rate in a nice neighborhood in Brooklyn for a 1 bedroom apt that is Rent Stabilized. Please NOTE: A buyout is TAXED JUST LIKE REGULAR INCOME!!! So whatever you get, plan on giving the IRS 30% of the pie!!|
Make sure you have a reputable tenant lawyer write up your aggreement which can cost between $3,000. - $5,000. OR 1/3 of the final agreed amount. Good luck. These landlords are GREEDY!! Seriously, where are you going to move to? If you love your home -- stay put -- They can NOT FORCE YOU TO MOVE!!
You are wrong, a buy out is taxed at special capital gains rates. 100K IS INSANE for anywhere in Brooklyn. we pay 50-100k in a prestigious building over looking central park.
we only pay it because we are selling the co-op apartment. if we were going to re-rent it we would pay nothing or close to it..
yep it sure does. a lease has been ruled a capital asset by the tax courts. google it.
owning rights to a lease as silly as it sounds is taxed at capital gain rates .
originally it was believed because the apartment you rented was for personal use the gain was taxed at regular rates.
tax courts have then said every thing you own can be a capital asset.
sell an old couch for more than you paid and it is a capital asset.
hmm, interesting. Technically shouldn't that also apply to say, New York Giants tickets. If I sell my $100 ticket to someone for $250, if what you're saying is correct then the $150 should be taxed as a capital gain rather than regular income, right?
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Can you afford to move & pay waaay more??
