I did the loan and paid it back immediately. Many banks/boards like to see X months of money in your bank account for reserves, and a loan will immediate payback works well for this purpose.

Posted by: asdf at July 22, 2009 1:55 PM in response to Tapping 401(k) for Purchase?

I think what it means is this. The seller is supposed to pay the tax, but in new developments they, of course, try to make the buyer pay the tax. But because for some reason the buyer can't actually pay the tax, the buyer at closing pays the seller the amount of the tax, who then pays the tax. Alas, because then you are giving the seller money, this is viewed as part of the purchase price and thus you must pay more tax to compensate for the tax on the amount you gave the seller to cover the tax. Thus the recalculation. Of course you can just negotiate the seller to pay the tax, which should be a no-brainier these days.

Posted by: asdf at June 30, 2009 3:37 PM in response to Transfer Tax/New Construction?

At the end of last week I asked and they said two more floors.

I think the building looks ok from the front, the colors are very nice at sunset, but the exposed concrete sides are horrific.

Posted by: asdf at May 26, 2009 12:24 PM in response to Downtown Tower Has Been Hit With 12 SWO's

Does this service discriminate based or gender or sexual orientation?

Posted by: asdf at April 20, 2009 11:24 AM in response to Right Rides Expanding into Safe Walks

Rare is a location as bad as this. The street is one block long here and dead ends into projects at both ends. No through traffic to at least discourage bad things. Worst block from the BQE to Prospect Park.

The 433 Warren condo is on the same block.

Posted by: asdf at April 15, 2009 1:51 PM in response to House of the Day: 445 Warren Street

quiet = not loud
loud = Bad for non-deaf people

Therefore quiet should be forbidden because it indicates a condition whose desirability highly correlates with the lack of a disability.

They should also not talk about any aspect of a unit that a blind and deaf person would would not be able to perceive. Or someone in a coma.

Posted by: asdf at March 13, 2009 11:27 AM in response to Word Ban at Corco

I live in the building. The other people who bought here are real people too.

The building is certainly odd. I like it. I can see the majority of people not liking it.

The block is not pretty, that is for sure. But then again, the building is 65 yards from the same subway station everyone else who lives anywhere near here uses. It is also that same 65 yards away from Smith St, on a block with a drug store, a grocery store and a hardware store, and with everything else Smith/Court is known for a very short walk away.

Yes, there are projects at the far end of the block, 150 yards away. These same projects are 1 block, 215 yards, away from much of Smith St. People walk down the block all the time to go from the projects to the subway at Smith, go to the grocers, or live their lives in general. I don't find this to be the end of the world.

Posted by: asdf at March 9, 2009 11:48 PM in response to Checking In On The Warren Lofts

don't they teach algebra in the NYC schools? they want rP(1+r). duh. Imagine a realtor trying to explain "well we need you to pay the interest, and then the square of the interest. Trust me, it's right. Just pay it."

Posted by: joe_the_bummer at June 30, 2009 3:50 PM in response to Transfer Tax/New Construction?

That is correct. By law, the Seller is obligated to pay both the state and city transfer taxes based on a percentage of the sales price (the percentage for city transfer tax varies based on the type of property and varies by location: NYC, Yonkers, Mount vernon all have different rates). With new developments and other sponsor sales, however, it is market practice for the purchaser to pay the tax. This means in addition to the accepted purchase price, you will be responsible to pay the tranfer taxes (when seller pays they are customarily netted out of the purchase price). Because the purchaser is paying this additional money, it is deemed addtional consideration on which the taxes must be paid. This is called a "true up" of the purchase price or consideration. So, to calculate the transfer taxes, you first calculate the percentage due on the accepted purchase price, let's say the taxes due are $20,000. Then you calculate the transer taxes would be due on the $20,000 due of additional consideration and the purchaser would pay the total amount. Also note, for residential properties where the purchase price is equal to or greater than $1,000,000 there is an additional transfer tax commonly referred to as "mansion tax" which by law the purchaser is obligated to pay (therefore, not included in any true up). As the commenter above noted, it is not out of line in this market to negotiate that the Seller pay the transfer taxes in a new development or sponsor sale; certainly many are offering it as an incentive to lure purchasers.

Posted by: meeva at June 30, 2009 3:58 PM in response to Transfer Tax/New Construction?

That is correct. By law, the Seller is obligated to pay both the state and city transfer taxes based on a percentage of the sales price (the percentage for city transfer tax varies based on the type of property and varies by location: NYC, Yonkers, Mount vernon all have different rates). With new developments and other sponsor sales, however, it is market practice for the purchaser to pay the tax. This means in addition to the accepted purchase price, you will be responsible to pay the tranfer taxes (when seller pays they are customarily netted out of the purchase price). Because the purchaser is paying this additional money, it is deemed addtional consideration on which the taxes must be paid. This is called a "true up" of the purchase price or consideration. So, to calculate the transfer taxes, you first calculate the percentage due on the accepted purchase price, let's say the taxes due are $20,000. Then you calculate the transer taxes would be due on the $20,000 due of additional consideration and the purchaser would pay the total amount. Also note, for residential properties where the purchase price is equal to or greater than $1,000,000 there is an additional transfer tax commonly referred to as "mansion tax" which by law the purchaser is obligated to pay (therefore, not included in any true up). As the commenter above noted, it is not out of line in this market to negotiate that the Seller pay the transfer taxes in a new development or sponsor sale; certainly many are offering it as an incentive to lure purchasers.

Posted by: meeva at June 30, 2009 3:59 PM in response to Transfer Tax/New Construction?

And at Be@Schermerhorn - where they're lucky to sell anything right now, your friend should DEFINITELY be able to negotiate away the transfer taxes.

Posted by: JKB at June 30, 2009 4:57 PM in response to Transfer Tax/New Construction?

ALSO, BEWARE that if you are buying the property for 983K-999K, the fact that you are paying the additional consideratnion for the transfer taxes will put you above the million dollar threshold and you will then be responsible for also paying the mansion tax.

Posted by: realestateconfidential at July 2, 2009 7:25 AM in response to Transfer Tax/New Construction?

the sad thing is i wanted to tap into my 401k savings to buy a PS3 only to find out i didnt have that much in it :-/

*rob*

Posted by: PitbullNYC at July 22, 2009 2:02 PM in response to Tapping 401(k) for Purchase?

i borrowed from mine and paid it back through payroll deductions and continued to contribute. it was a big help for us - it is borrowing from 'yourself'.

Posted by: bkny at July 22, 2009 2:16 PM in response to Tapping 401(k) for Purchase?

Use 401 for its purpose, not its pitfalls. Housing and its reserve funds should be seperate from your retirement. The time required to save will probably be the time the market bottoms.

***Bid half off peak comps***

Posted by: Brownstones Half Off at July 22, 2009 2:23 PM in response to Tapping 401(k) for Purchase?

I borrowed from my 401K and then changed jobs and had to pay it back immediately. Even if you don't lose your job, the loans can handcuff you to your current job if you wanted to make a change.

Posted by: trudylou at July 22, 2009 2:57 PM in response to Tapping 401(k) for Purchase?

If you have to tap into your 401(k) to buy, should you really be buying?

Posted by: lechacal at July 22, 2009 3:13 PM in response to Tapping 401(k) for Purchase?