Co-op of the Day: 728 41st Street, 3A
This prewar co-op at 728 41st Street in Sunset Park recently hit the market with a price tag of $299,00. It’s either a one-bedroom with a dining room or a two-bedroom, depending on how you slice it. Overall it’s got a very nice vibe to it, though we’re not loving the cabinetry in the kitchen….
This prewar co-op at 728 41st Street in Sunset Park recently hit the market with a price tag of $299,00. It’s either a one-bedroom with a dining room or a two-bedroom, depending on how you slice it. Overall it’s got a very nice vibe to it, though we’re not loving the cabinetry in the kitchen. Still, with a low monthly maintenance of just $328, it strikes us as quite a reasonable starter apartment.
728 41st Street, 3A [FSBO] GMAP P*Shark
“So you get to deduct ALL of it? So, if you’re single (in your example) your “adjusted gross income” is $19,000 less?”
Yes, that’s correct – all of your interest is deductable. You can also deduct the portion of your maintenance going to building mortgage interest if in a coop. It’s definitely a pretty major factor in rent v. buy equations because the tax incentives are so large.
tybur6, your city/state taxes paid are also deductions.
Thanks Squaredrive, i appreciate the response. — but this is INSTEAD of your “standard” deduction, right?
So you get to deduct ALL of it? So, if you’re single (in your example) your “adjusted gross income” is $19,000 less?
That’s amazing. So the first year, you get $13,300 more off your taxable income than if you just took the standard $5,700 deduction (as a single person)?!
Crazy stuff.
I would still like an answer about the tax rebate question. Is there no one out there that has a renter –> owner comparison?
And I’m talking about modest purchases like this place, within the context of a modest tax bracket.
Ty-
I’ll answer your question really roughly. The vast majority of your mortgage payment in the first few years is interest. Say you buy a 400K place with 20% down. so you are carrying a $320K mortgage at 5.5%. Monthly payment around $1800 and your first year of interest is around $19,000 according to an amortization table I just looked at. So you subtract $19000 from your income. You can basically multiply 19K x around 30% tax bracket for shorthand and your tax savings is around $5700 – that goes on top of your other deductions. it’s enough to make a pretty big difference.
exactly. so its more efficient PLUS you’re splitting amongst more apartments and it’s only in the winter so divide 2-3 months of cold weather by a year so maybe each assessment is about 100-200 twice a year so that’s not bad if you split on a monthly basis.
Kens – I’m wondering if it’s something between our two wild guesses. I mean, I’ve peeked at my landlords oil bill for my 3 story house… and it ain’t pretty. It’s like $300 a week in the winter. Of course it’s old and drafty and I’m sure the boiler is miserably inefficient… and multi unit buildings like this are more efficient per sq ft.
The thing about Sunset park is that it’s almost entirely about two monocultures: hispanic on the west side and oriental on the east. This applies to the retail as well as the residential aspects.
So if you really like hispanic stuff, live around 5th avenue. You’ll find every single retail place, with a very few exceptions, are hispanic. If you want chinese, go to 7th/8th avenue (can’t remember which is the main drag).
If you want any variation of those, you have to go outside the community.
Most of the rest of Brooklyn seems much more integrated e.g. lots of different cultures intermixed.
ty, just making a wild guess but maybe it’s about a 300 dollar assessment once a year or so. No way it would be 300 a month so it’ll add another 30-40 bucks a month to your maintenance charges.
Snark, sorry don’t know any dim sum places. M4L would be a good person to take a suggestion from as he is from the motherland of dim sum but be warned – he eats field mice and dragon flies.