UrbanDigs in NY Post
A: Its PR week for me! I was interviewed for this story about 3-4 weeks ago by Adam Bonislawski who wanted to write an educational post on new development tax abatements after reading on UrbanDigs and other sites that it might not prove to be the best investment as monthly expenses rise over time. Needless to say, he wrote a fantastic article yesterday in the NY Post. Here it is in case you missed it!
and there is more...here are some cut and paste's directly from the article:
But buyers do need to be aware of how the tax break's expiration would affect their investment, Rosenblatt stresses. "On the open market, a property's value is directly related to the total monthly expenses that are carried with the property," he says. "I don't think developers are factoring in to their pricing what the cost of maintenance is going to be 10 years down the line."For the complete article, click here.And if developers aren't, perhaps buyers should be. Rosenblatt tells the story of going with a client recently to look at a $3 million apartment with a 421a abatement.
"The real estate taxes for the property right now were about $150 a month," he recalls. "Upon expiration, they were going to be around $2,300 a month. So the total carrying costs of the apartment were around $2,000 right now.
Then I asked the marketing people what the mature taxes would be on the property. When they told us, my client jumped up and said, 'Are you kidding me?' In 10 years time, it's going to cost her over $4,000 a month to maintain. So just how much upside does this apartment have?"
