Should We Feel Sorry For Novo Contract Holders?
Say what you will about the Novo’s architecture or finishes, or about its developer, or about the fact that it won’t have the most exciting commercial tenant in the world. All of a sudden, we’re starting to feel kinda bad for the 4th Avenue condo’s contract holders, some of whom have been waiting a looong…
Say what you will about the Novo’s architecture or finishes, or about its developer, or about the fact that it won’t have the most exciting commercial tenant in the world. All of a sudden, we’re starting to feel kinda bad for the 4th Avenue condo’s contract holders, some of whom have been waiting a looong time to move into the building. While everyone knows that new-construction delays are possible, or even likely, we’re hearing some desperate stuff from contract holders these days. One person posting on the Novo Yahoo group last week had this to say: “I heard a somewhat worse scenario from my mortgage broker who called the sales office today. They said the TCO is now expected in July with closings 30 days later – that potentially pushes closings to August. What does that mean for move ins? I’m assuming September. Sorry if you think I’m being too pessimistic, I’m just reacting on what I’ve been told. Trust me, I just want to get into the place, I’m in a studio with a year old child! Mucho fun. Been in contract since early April last year so I’ve heard it all by now. Wish I’d have seen through the BS back then. This is business to them, a potential home to us…” Meanwhile, the contract holder who sent us the tip a couple weeks ago saying he and 11 other buyers were about to be released from their contracts because Novo developer Shaya Boymelgreen hadn’t finished work on the adjacent public park by late June wrote to say he hasn’t seen Boymelgreen’s workers making any significant progress on the park. (Neither have we). With all the delays, he’s ready to throw in the towel. “Finding an affordable 3br apartment in Park Slope is a Herculean task,” he writes.” We are so disappointed with what has happened with the Novo as it had affordable 3br units. I believe now at this point we will start looking for a new rental and perhaps look at options outside of Park Slope or perhaps the city altogether.”
C-of-O Woes for the Novo? [Brownstoner]
Novo Takes a Nosedive [Brownstoner] GMAP
5:10 – so people in the rest of the world are retarded? They are too dumb to use alternatives to oil? Brazil already powers virtually all of its cars by ethanol – I guess that is just a fluke?
If anything developing countries like India and China have even a more elastic demand curve for oil because
1. They have virtually no domestic supply (unlike U.S. where we produce almost 50% of the oil we consume)
2. They are poorer and therefore more sensitive to price – since it makes up a larger % of their GDP and personal income
3. Are less constrained by environmental laws then the US and Europe – and therefore can (and do) burn more and dirtier coal for their electric needs.
4. Do not have the oil based infrastructure that we do – therefore alternatives are cheaper to implement
5 Have a population moving more toward urban living and do not have and likely (with high fuel cost) will not develop – car dependent suburbs to the extent post-war U.S. did.
It seems clear to me that my schooling in economics was far more advanced then yours – I also am amused by your confidence about ever rising fuel prices – it makes me nostalgic for peoples past confidence in ever rising housing prices(2000s), ever rising tech stocks (1990s), ever rising silver prices (80s), etc….
the burbs are a sell out.
even the people who move there know it.
“Financially, however, if you buy the 800K house in Westchester I just saw with taxes of 15K a year, that seems a lot cheaper than a million plus on a condo at NOVO with, what, $1500 in monthly charges (18K a year), plus private school tuition, plus city income tax.”
First of all, Novo is in PS 321. So people there would not pay for private school. For K-5 anyway.
Secondly, we sold an apartment we owned for 13 years and paid cash for a house. That kind of trade-up never happens in the burbs. Don’t forget that. City residents aren’t all making 20% down types of purchases like the suburbs. As for city income taxes, it’s still less than what we’d pay to buy a car and insure it.
You won’t be able to make the suburbs appealing financially. If people choose the burbs it is not for financial investment reasons. It’s a lifestyle choice all the way. Nothing wrong with that. But for those who really love the city and want to stay, these days they really should. And they are. It doesn’t make enough sense to choose the burbs for financial reasons only.
A friends finally pulled out and got a 3-bedroom in PS in a decent building. Very different living situation but I’m glad they were able to pull out a while back. Frankly, they wasted a lot of money in rent during the interim.
There should be a class action against “BoilCream”!
4:51…
You seem to think the world revolves solely around the United States.
The reason gas prices are headed towards 7-9 bucks a gallon has abolutely NOTHING to do with the U.S.
It has to do with the ever increasing demand for oil from China, India, Brazil, etc.
I’m not sure where your economic schooling comes from, but gas prices are going no where but up. They may fluctuate, but what’s happening now is a trend towards higher gas prices. Not a “high” in a wave.
Benson – of course the oil industry says that supply has peaked – controlling a scarcer commodity is way more profitable than an abundant one.
Supply is also elastic, in that oil that is not cost effective to recover and refine at $20 (for example) a barrel becomes more economical at $30, $40, $100 a barrel. This applies to old wells, wells with less than ‘pure’ light sweet crude as well as oil in places like deep below the Gulf of Mexico.
As for demand – of course it is elastic – as the price increases – people will buy/drive more efficient cars – they will combine trips – they will take less optional trips (like vacations)-if the price gets high enough they will move closer to essential things like jobs, retail and entertainment. Businesses will adjust by having less trips, more efficient deliveries and so on.
As to freezing – the vast majority of people outside of the Northeast use Natural Gas to heat – so they wont have to freeze and the rest will take up Jimmy Carter’s instructions from the 70’s and deal with a slightly colder house.
Over the longer term if the cost doesn’t come down – people and industry will switch to alternatives like electric (most electric comes from coal or NG plants), and non-oil based substitutes for petroleum products.
Eventually, as people demand less oil – the price inevitably falls (peak oil or not btw) – mind you this does nothing for carbon emmisions but the idea that people will be forced to pay $9 to drive 25mi or so for the rest of history is just silly –
BTW – the above is essentially Econ 101
4.12 PM;
I think your analysis is off. You must surely have seen the reports in the paper that the oil industry itself (not the tree huggers) are concerned that supply has peaked,and is now on a downward slope.
I completely disagree with your statement that demand is elastic. The vast majority of Americans live in places where driving to work, the stores, etc. is the only option. What elasticity do they have? Freezing their buns off in their house?
4.04 PM;
I do have kids (now grown) that I raised in Brooklyn. I should have been more specific in my statements. I was referring to the teenage years. By that time my kids were able to go to most places by themselves, whereas my brother and his wife were only stepping up their chaffeuring activities at that time.
Benson
regardless of the condo – if your are buying pre-construction – try to get a 1 year lock in rate. we did. also, really really shop and track how fast your building is going up and how many units are sold.
there are buildings that still seriously aren’t finished that were kicking around when we bought our condo summer of 2006 and we’ve been in here for 1 year and 1/2.
for the PS obsessed, the NOVO is a good deal – regardless of the naysayers here. personally, i’m not a fan of PS and especially not 4th ave, but i can understand that this was the only way for many who wanted in the hood, so lighten up on them.
3:47, as you must know, here in lower Westchester County many people take the train to Manhattan or have a short drive to White Plains or 287. The second car hardly gets used. And going forward there will be lots of cars that get 30 to 35 MPG. The price of gasoline will not have much of an impact on the inner suburbs.