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I believe it is taxed at capital gains rates under some recent rulings .
It should be*, so 15% federal plus whatever state city taxes you'll pay. So if you make a moderate income you'll be looking at about 25% between federal/state/city.
Majority of buyouts do not make sense to the tenant, unless they don't intend to stay there for long anyway. The tenant usually only gets a fraction of the present value of the difference between market rate and the rent they're paying. Which is fair since they never had any ownership of the building, but reaped the benefits of the rising housing market.
well deals happen all the time with tenants ready to go but you are correct, the deal may be not worth much to the landlord and not enough to the tenant.
tenants think all the time they are sitting on a goldmine and want crazy numbers. but unless they are co-ops they would be worth nothing in a buy out to us if it meant just a rent increase that we would see...
I am not an expert on rent stabilization, but I'd like to know your perspective on why you think you are owed anything at all. Not 'b/c other people got this' or 'that's just the way it works' etc.
you rent someone else's property. If you wanted the stability of never having to move, well, that's why you buy. There are risks faced with renting, risks faced with buying. Why should these not apply to you? Why should someone else have to pay you money so they can get a fair value for their property?
you rent someone else's property. If you wanted the stability of never having to move, well, that's why you buy. There are risks faced with renting, risks faced with buying. Why should these not apply to you? Why should someone else have to pay you money so they can get a fair value for their property?
Don't you people ever bore yourselves with this stuff?
What i object to is this idea a lease can run forever and i am basically
adding a member to my family.
Only as long as you choose to keep him as a quasi family member. You can always SELL.
Tenant stays as long as he wishes and YOU stay as long as you wish. Tenant might give up his tenancy rights for a lucrative payout and YOU might give up you ownership rights for a lucrative payout.
Quote:
The tenant usually only gets a fraction of the present value of the
difference between market rate and the rent they're paying.
That is absolutely correct but only serves to illustrate the different business acumen between landlord and tenant.
That's why we are here telling the tenant not to fall for the nonsense spouted by his/her landlord...we are trying to explain the present value of the rent discount.
An apartment Go or Stay decision (or a buyout or not valuation) SHOULD be valued at the present value of the apartment by both tenant and owner.
Last edited by Kefir King; 08-15-2013 at 09:40 AM..
I am not an expert on rent stabilization, but I'd like to know your perspective on why you think you are owed anything at all. Not 'b/c other people got this' or 'that's just the way it works' etc.
you rent someone else's property. If you wanted the stability of never having to move, well, that's why you buy. There are risks faced with renting, risks faced with buying. Why should these not apply to you? Why should someone else have to pay you money so they can get a fair value for their property?
I totally agree.
I hate all these RS RC tenants that think they are entitled to everything.
Newsflash: your not!
The LL usually wants them out so he can charge more rent that is obviously why they offer to buy them out.
But the tenant also has to realize, the LL will offer but so much then stop, or could even say, OK forget it.
It is nice to get a lump sum, but that will run out, so that is also something to consider.
I wish they would get rid of RS & RC once and for all.
I love how the RC RS tenants are entitled to a free paint job every 4 years or so according to RSA... To me, that is BS, your living there, buy a can of paint and paint it yourself. What makes the RC RS tenants entitled to a free paint job???? I will never figure that one out.
I love how the RC RS tenants are entitled to a free paint job every 4 years or so according to RSA... To me, that is BS, your living there, buy a can of paint and paint it yourself. What makes the RC RS tenants entitled to a free paint job???? I will never figure that one out.
They have to paint for every new tenant. Would you rather paint every year for a new tenant or have longer term tenant that only requires you to do so every 4 years. Its your place you own it, you should want to keep it nice and up with appearance instead of seeing it shotty and going to h*ll.
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