House of the Day: 96 Joralemon Street
Not too shabby! This three-family house at 96 Joralemon Street is top-shelf — and the price reflects it. The 4,600-square-foot property is divided up into three units, including a doctor’s office on the ground floor. Both the upper triplex and parlor-floor simplex are attractively renovated and full of old-school charm. So there’s no question that…
Not too shabby! This three-family house at 96 Joralemon Street is top-shelf — and the price reflects it. The 4,600-square-foot property is divided up into three units, including a doctor’s office on the ground floor. Both the upper triplex and parlor-floor simplex are attractively renovated and full of old-school charm. So there’s no question that lots of folks will be salivating over this place. The only question is whether they’ll be willing to shell out $3,600,000 for the privilege of owning it.
96 Joralemon Street [Corcoran] GMAP P*Shark
I know this building very well. It may not need a complete gut, but it does need a TON of work. for 3.6 MM, it is in fact too shabby. great bones, great location, but the price is about 800k too much.
can’t compare real estate taxes in NYC with those in NJ or suburbs. NYC has (local)income tax so as not to rely as heavily on residential real estate. Outside city does not have the (local)income tax.
Wow, the taxes are about the same as a 900 sq ft wooden ranch home in NJ or LI. Nice house but not worth $7000 a month after rents to live in a tiny apt.
aren’t real estate tax increases based on two figures: the assessment and the rate? I know the rate rises at a somewhat more predictable rate, but the assessments have jumped. 10% in 2010 where I am in Brooklyn Heights. Co-ops are harder hit, no doubt. And I could be wrong about the whole thing — it’s a bit of a mystery to me frankly.
Using some very aggressive rent numbers (5000 ground floor, 4k parlor, 7k rest of it) and a 15x rent multiplier (7-12 is more common), we get 2.9M.
Alternatively, the total cost of this of owning this building is 6.5% * 3.6M + 20k in taxes + insurance, heat, repairs, etc — roughly 260-300k per year.
So the price/rent equation is totally nuts on this.
If you buy this, you either believe:
a) That you have so much money and that this is a ‘special’ building, so you don’t mind overpaying
b) That inflation is going to be so high that the purchase price won’t matter anyway
c) That you need to own a place because you don’t get along with landlords or want to reconstruct the place to your liking
d) That you need to own something and that renting is simply not a good substitute.
e) That NYC’s development restrictions and jobs pictures will continue to reduce supply and ensure a steady stream of mongo-sized bonuses.
It seems to me that this is priced beyond perfection, and that in most circumstances there’s limited upside, but there may be people with so much money that they simply don’t care.
Why are people upset about the taxes? Perhaps they are high by Brooklyn standards, but they are minuscule when compared to Westchester or NJ. Less than $20K in real estate taxes for a $3.6 million house? In Westchester, you’d be looking at at least $60K in Scarsdale for example. I am not opining on whether B’lyn is too low or Westchester too high. Rather, I am simply stating that people in this bracket are likely considering a huge house (with a huge tax bill) in Westchester or an apartment in NYC with an equally high tax bill. So, anyway you slice it, a purchaser for this property is likely not put off by the taxes. That being said, the house looks really nice and I would not mind the doctor’s office. But, for that price, I want the parlor and do not want two tenants. I think you have to factor in taking over the parlor floor and converting the house to a single family over a doctor’s office.
taxes on regular homes (1-4 or 5 family) are limited each year on increases. To say Brooklyn Ht increases(skyrocketed) are higher than other areas is not accurate (%-wise).
This prop’s taxes are high because mixed-use bldg.
3 family house (even if next door) and similar value would be not at all in this range.
The tax situation is the ticking bomb.
DIBS, you are right. I don’t feel like painting a bullseye on myself.