Cuomo Calls for Strengthening Rent Reg Laws
Governor Cuomo released the video above yesterday saying that if rent-regulation laws are allowed to expire next month, it would be a “crisis” for the state and that the laws need to be extended and strengthened. Cuomo says that “by current standards, it is estimated that over 130,000 more apartments could be lost to decontrol…
Governor Cuomo released the video above yesterday saying that if rent-regulation laws are allowed to expire next month, it would be a “crisis” for the state and that the laws need to be extended and strengthened. Cuomo says that “by current standards, it is estimated that over 130,000 more apartments could be lost to decontrol in the next few years.” City Room notes that the though the Assembly approved legislation last month that would extend rent regulations through 2016 and shift the luxury decontrol ceiling from $2,000 to $3,000 a month, “the issue has drawn little interest in the Senate.”
Cuomo Releases Message Urging Stronger Rent Laws [City Room]
DIBS, agree entirely on your flat tax point. That’s the only way to ensure everyone pays their fair share.
While the rent regulation laws could probably use amending, I disagree with the premise that they are somehow harmful and cause prices to rise, keep people from moving, etc. We all know that market prices went way too high as greedy banks, brokers, and homeowners pushed prices beyond all sense of reasonableness. Hence, the collapse of the housing market not just in NYC, but nationwide, and even worldwide. Remember when anybody with a pulse could get a mortgage for whatever dream home they wanted to buy but couldn’t afford? I recently saw a 2BR apartment in the southeastern edge of Kensington (i.e. not the best part in my opinion), nice place to be sure, that has an asking price of $400k and is listed with a major broker. The current owner appears to have purchased it in 2004 for $250k. Please explain to me how that coop can possibly be worth $150k more than it was purchased for 7 years ago. Sure, they may have done some renovations, but it isn’t like the bathrooms are tiled in gold or there’s a jacuzzi in every room etc. I’m sorry, but people feel entitled to make huge profits because the banks and brokers trained them to expect it, and there are enough idiots out there who will pay these prices and overleverage themselves. $400k for a 2BR coop on Ocean Pkwy and 18th Ave? Really?
I should have said “some renters.” Sorry.
You give me a flat tax in the range of 12-17% like Hong Kong, Singapore and a few other places have and I’ll gladly give up the mortgage deduction.
The next time we go through a cycle and rates get very low (mid 4% range), I’ll be taking out a mortgage on an otherwise unmortgaged property, even if there is no deductibility.
We don’t like the mortgage interest tax deduction either, or 421-a for that matter.
We’d prefer to see a free and open market for landlords and tenants alike, with subsidies for truly deserving recipients (poor elderly, poor disabled, etc).
DIBS, no bitterness here. I agree some renters may be bitter, but I have no resentment against homeowners – my decision to rent is based on an economic view that my dollars are better spent/invested in another asset class.
I realize full well that the mortgage deduction is designed for the middle class. What you fail to appreciate is that the mortgage deduction is indeed something for nothing – I have a high credit rating as well; that does not mean that I deserve a tax break for it. The mortgage tax deduction is effectively the government subsidizing mortgage payments; without it, people could afford less home or the more likely outcome is that home prices would fall to their free market level (i.e., the market without a government subsidy that artificially inflates property values). If the mortgage tax deduction is not “something for nothing” then why do so many (realtors, developers, homeowners) get charged up whenever the prospect of repealing the subsidy comes up?
As a matter of fact I do, bkhabitant. It’s part of the tax code and it’s a legitimate expense against the income from the rental unit.
It’s not “something for nothing.” I maintained a high credit rating to secure a mortgage. I didn’t ask for a handout below what market prices are.
What you fail to realize is that the mortgage deduction, which isn’t going away, is for the benefit of the middle class. The more wealthy carry a much lowere LTV or no mortgage at all.
In addition, rent control is found primarily ONLY in NYC (plus a handful of other places) whereas the mortgage deduction is available to everyone.
I don’t really care one way or another as my mortgages will all be paid off in a few years.
The bitterness of renters is truly amazing.
Amen Benson.
I’ve said this before: the government should get out of the housing market. Eliminate the mortgage interest deduction. Eliminate rent control. Eliminate the underwriting of residential mortgages. Eliminate tax abatements for developers. Let the market set the price to its natural level.
The social safety net should be on the income side: rent vouchers, earned-income tax credits, etc.
DIBS, based on your comments about being entitled to “something for nothing”, I assume then that you don’t deduct your mortgage interest expenses to reduce your tax burden?