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
3.11 PM;
Your math is not complete. Being in the suburbs requires an extra car, and that car will easily go through 15K miles per year. Right now the IRS estimates that the total cost per mile (including gas, maintenance and depreciation of the car) is $0.505/year. That works out to $7.5K/year for that extra car.
Another factor not considered in much of the analysis above is maintenance of the home. Things do break down. A larger lot/home means more money spent on things like lawn care, termite control, cleaning of gutters, etc.
Finally, and this is just from my observation of my family who has moved to NJ: you spend alot more time there being a chaffeur to your kids. I don’t think it is particularly healthy for the kids either. My nieces and nephews are enrolled in “programs”, be it soccer, music lessons, whatever, to which they are chaffeured. They have no concept of getting together with their friends on their own.
To each his own. Folks should be able to live where they want. I will say, however, that the economic realities are definitely tilting more in the city’s favor. Since the price of gas has gone up, I’ve used public transit more, such that my mileage is down to 200/month, without impacting my life style much. Can you really do the same thing in NJ? Indeed, one of my theories as to why gas prices keep going up is that there is little elasticity in demand. Once you are in the suburbs, your consumption pattern is locked in.
Benson
“So you trade off spending more for a city dwelling now for paying 25K in taxes and 10K in gas a year in the burbs. It’s a trade-off for sure.”
Gee, 10K in gas a year? Where do you get that? I just asked my coworkers who live in the burbs and drive about 10 miles every day what they spend on gas now and they said $1,500 to $2,000 a year. So you think gas will go to over $20 a gallon?
I know lots of people who moved to the burbs in the last few years and loved it, so I never buy the comments about people regretting it. I’ve never met one. But I suppose they’re out there.
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. Even if you spend 5K a year on gas in 5 years, it is still cheaper. Not to mention that you can invest all that cash you saved on the purchase price.
2:47 – 10K in gas? Give me a break. 15,000 miles/25 MPG = 600 gallons x $5/gallon = $3,000.
Also, has everyone forgotten the NYC 5%(?) income tax.
If I ever left the city it would only be to go somewhere very rural. A total lifestyle change. I couldn’t do that halfway, not one or the other thing, where you’re in the burbs where it’s still really congested with people everywhere, but nothing around so you’re still having to drive everywhere. So you’re not connecting with those people. Weirdness and limbo.
Can’t relate — I am only going to get MORE into gardening and home renovation and design when the kids are off to college! I’d never give up my house and garden, so we’re staying in Brooklyn. If we had to move back into an apartment in the suburbs to save on property taxes there after the kids go off to college, ugh, no thanks. Plus we’d want the kids to be able to have plenty space to comfortably live at home during the Summer so they can do NYC Summer internships in college.
It’s not about being able to afford the tuition, 2:31, it’s about having to pay tens of thousands a year for taxes to support schools that you no longer use.
New Jersey is in a real state of financial stress right now with things only getting worse. I know quite a few couples who moved to the NJ burbs in and around 2000…2001…2002. ALL they talk about is how they wish they never left Brooklyn….
Just anecdotal, of course, but that’s what I’ve got…
I’d be nervous about living in a place where I can’t live without a car. Gas prices in the mid term (5-7 years) will most definitely hit $7-10 a gallon. That’s a guarantee. In most of Europe, that is the reality right now in 2008. It’s headed our way…
So you trade off spending more for a city dwelling now for paying 25K in taxes and 10K in gas a year in the burbs. It’s a trade-off for sure. Over the life of a mortgage, that’s 300K extra (just in gas) that you could have spent on a home in the city….
2:16 – We’re far from rich, but by the time our kids go to college our mortgage will be paid off, and we will be able to pay tuition (well, it would be tough if both kids went to private colleges). The taxes on my house in five years will be about $15,000, and figure another $5,000 for heat. That’s $1,700 per month. Not bad for a whole house.
1:54 – lots of people sell their houses when the kids go off to college. And beautiful coops in Westchester sell for $300 to $350/SF. If you have two or more kids who you are sending to public schools, the suburbs, if you like them, are a better deal than the $25,000 (and rising) private-school tuitions.
(If we had to pay NJ or Westchester property taxes)
How much to you earn? I’ve read the breakeven for NYC income taxes and suburban property taxes is $250 K. Above that, your local taxes are lower in the ‘burbs.