Quick look at 368 Third Avenue. This new residential tower in midtown Manhattan will rise to 388 feet when completed. It will include 100 new apartments and a ground floor retail space. It’s expected to be completed in 2021.
1/8/2020 2 Comments
Real estate taxes have always been a key contributor in funding the city's operations. New York City’s real estate taxes generated the city $31.9 billion over the last fiscal year, according to a recent report by the Real Estate Board of New York (REBNY). NYC Property Taxes generated the city $28 billion alone, enough to cover the salaries of the 300,000 plus full-time employees currently working for the city. Additional revenues generated from real estate related taxes were generated through Property Transfer Taxes ($1.4 billion), Mortgage Recording ($1.0 billion), Commercial Rent ($900 million), and Hotel Room Occupancy ($600 million).
The total amount raised from real estate related taxes alone represented 53% of the City’s total tax revenue, up from 47% of the total tax revenue in 2009. According to the report from REBNY, Personal Income Taxes generated the next largest amount of revenue for the city at 21% of it's total tax revenue.
“This report demonstrates the importance of real estate related tax revenue to our thriving city,” said James Whelan, REBNY President. “A healthy real estate industry is vital to the health of the city, as real estate related taxes make up more than half of all taxes collected. This revenue supports the city’s share of salaries for every single police officer, firefighter, and schoolteacher with billions left over to pay for parks, libraries, and other critical public services that ever New Yorker enjoys. If we want a progressive city, then we need a prosperous city. These findings underscore that policies that limit the amount of tax revenue generated by our industry are counterproductive to improving the lives of New Yorkers they aim to help.”
See REBNY report here
Written by Colin R. O'Leary
By Colin R. O'Leary
Although the economy is booming and unemployment is at record lows, 2019 was a challenging year for the NYC real estate market. The market is showing mixed results depending on which borough you look at. Medium home values have risen in Brooklyn and Queens over the past year, however slightly at just over 1% over the past 12 months. Zillow predicts that medium home values will decline slightly in both Brooklyn and Queens in 2020.
The Bronx real estate market is the outlier, where the market continues it's hot streak. The medium home value in the Bronx has risen over 10% year-over-year. The median price of homes currently listed in Bronx is just $385,500, which makes it the most affordable borough in New York City. Zillow is predicting the medium home value in the Bronx will continue to rise in 2020.
Medium home values have decreased year-over-year in both Manhattan and Staten Island. The Manhattan market has been the most troubling for home sellers in NYC, where the medium home value has decreased -6.3% over the past 12 months. Staten Island home values have also declined by -1.2% over the past year. Zillow predicts that medium home values in Manhattan and Staten Island will also continue to decline over the next 12 months.
The luxury market in NYC has been hit hard over the past 12 months. According to the Olshan Luxury Report, the number of contracts signed above $4 million in Manhattan has declined by 16% compared to 2018. 935 contracts have been signed above the $4 million price mark in 2019, totaling $7.65 billion worth of real estate transactions. According to the report, this is the lowest dollar volume for luxury real estate priced above $4 million since 2012.
I had the honor to speak at St. John's University in November as the keynote speaker at the Kappa Sigma Military Heros fundraising diner. It was a great night and excellent turnout as we helped raise thousands of dollars for Veteran service organizations. Checkout the video above to hear my speech addressing students and faculty as St. John's University on Staten Island.
After signing a real estate contract to purchase property, but prior to closing, close to all attorneys located in the United States will order a title report which is needed in order to obtain a title insurance policy at the real estate closing.
More often than not, when acting as a purchaser’s counsel, I am asked, “what is the title report and why do I need a title insurance policy?”
The title report will contain a title search, which is an examination of public records to determine a property’s legal ownership and to determine whether or not there are any legal claims to the property made by; (1) other parties (2) defective recording and/or record keeping, and (3) judgments against the property from an outstanding judgment or law suit.
A situation where another party may have a legal claim to a property which someone else thought they owned can occur when there is a publicly recorded lien that gives another party a claim to money from the subject property. An example of such a lien is a mortgage. A mortgage lien will only be extinguished by payoff of the mortgage and a satisfaction recorded. Transfer of title does not extinguish the mortgage and therefore, if not extinguished by the recording of a satisfaction, the purchaser would be responsible for the seller’s mortgage.
In the case of defective recording of a deed or mortgage satisfaction; homeowners can find themselves in a bad predicament if they were to discover that due to a clerical error; the deed presented at the real estate closing was defective and could not be recorded or there was a defective deed or mortgage satisfaction in the chain of title.
A judgment against the property can occur when a creditor obtains a money judgment against a debtor and then files a real estate lien in the county clerk’s office against the debtor’s property. Once recorded, the lien notifies whomever is searching, that the property owner owes a creditor money. This, also, would not be extinguished by transfer of the property, and would become a new owner’s problem if not taken care of; at or before the real estate closing. The same is true if taxes of any kind are owed.
Any lien, unpaid taxes, or judgments raised against a seller would be stated as an exception in the title report under Schedule B. Not all liens are created equal. Different types of judgments and liens, each have their own expiration periods. For example, the statute of limitations on a memorandum of judgment is seven (7) years as opposed to a New York Tax Lien that only expires after 20 years, or a Uniform Commercial Code (UCC) lien which depending on the purpose of the UCC has different expiration periods.
It is important to have a knowledgeable attorney review the title report in order to determine whether or not there are any exceptions raised in the title report which can hinder a transaction; and if there are, how to clear the exception.
Once the purchaser’s attorney receives the title search, he/she will work with the title company and seller’s counsel to clear any open title exceptions, so that at the closing, the purchaser can receive an insurance policy with clear title, ensuring that there are no claims to contest its ownership in the property.
At the New York real estate closing, the title company will generally send a representative to provide the title policy. There are two types of policies; Homeowners and Loan. The Loan policy is for the lender while the Homeowner is for the property owner.
The loan insurance policy, which the home purchaser must pay for, albeit at a discounted price, is based on the dollar amount of the loan and only protects the lender’s interests in the property should a problem with arise. The policy provides protection for the lender, namely that; (1) The person giving the mortgage owns the underlying real estate, (2) the person who owns the real estate has the authority to convey a mortgage interest, and (3) the mortgage is a lien in the first priority. The lenders title insurance policy does not protect the homeowner’s investment in the home. The lender’s policy only covers claims that the affect the lender’s loan.
The insurance policy which protects the home owner is the Owner’s Policy. This policy protects the homeowner when the house is refinanced or sold and/or if someone later sues the homeowner saying they have a claim against the property. The Owner’s policy protects the current owner from financial loss sustained from defects in title to a property prior to current ownership. Title insurance companies will defend against a lawsuit of someone attacking the title or reimburse the title holder for the actual monetary loss incurred up to the dollar amount of insurance provided by the policy.
In summation, title insurance is extremely important for the property owner. Purchasing a property is generally an expensive and major expenditure. Purchasing a title policy, is a way to make sure that you know exactly what you are purchasing and to protect the property owner in case there is a claim made against the property.
Written by Elliot Schubin, Eqs.
Schubin & Issacs
2024 Washington Ave, Bronx, NY 10457
Welcome home to the Bronx! This charming 2-family brick townhouse is move-in-ready. It's located in the Tremont section of the Bronx, just a short walk from all the great restaurants and shops along Arthur Avenue. The townhouse is less than 20 years old and has been meticulously maintained by the current owner.
On the first two levels is the owner's duplex, which features three bedrooms and two bathrooms. The owners duplex includes a private backyard, perfect for those summertime barbecues. There is a second apartment located on the third level that features two bedrooms and one bathroom. The townhouse also includes a gated-driveway in the front.
The townhouse is conveniently located near the B & D trains at Tremont Avenue and also the Metro-North Harlem Line, making it an easy commute into and out of Manhattan. Both units will be delivered vacant. Call to schedule a showing today!
See full listing details here
33-15 81st Street, #6F, Jackson Heights, NY 11372
Welcome home to Donner Gardens! Located on a tree-lined street in Jackson Heights, this garden-like postwar co-op complex offers a true escape from the hustle and bustle of city life. Apartment #6F, located on the top floor, features one bedroom & one bathroom with hardwood floors. The unit faces north-east and has excellent light exposure, with windows in every room. The kitchen and bathroom could use some minor updating. It's a great opportunity to add value and personal touch.
The building features a laundry facility, elevator, and on-site Super. The building is also pet-friendly, so bring your furry friends! Residents have access to a private garden, where you can catch up on your reading. There is a parking garage that currently has a wait-list. Subletting the unit is permitted after the first 5 years. Excellent shopping and restaurant options nearby. Quick commute to Midtown Manhattan with the 7-train nearby. Contact us to schedule a showing today!
See full listing details here
MANHATTAN CONDO LIVING AT IT'S FINEST
Now Asking $775,000
Welcome home to Manhattan Place!
Manhattan Place is a full-service luxury condo in Murray Hill. The building is well known for having one of the most awe-inspiring rooftops in the city. Apartment 5H features stunning south-western views of the Empire State Building and midtown Manhattan. The apartment has a spacious layout with parquet wood floors and plenty of closet space. The apartment needs updating, but the bathroom has already been renovated by the current owner.
The rooftop features an indoor pool and hot tub, a tenant lounge with bar, two outdoor sundecks, a fitness center with locker rooms, and an indoor running track with stunning 360-degree views of the city. The building also includes a full time doorman, a laundry room, a storage room, a children's playroom, and a parking garage. The building is walking distance to multiple subway lines, the NYC Ferry, Grand Central Terminal, Penn Station, and the midtown tunnel. The price is negotiable. Contact the listing agent to schedule a showing today!
Neighborhood: Murray Hill
Building: Manhattan Place
Address: 630 First Avenue, New York, NY 10016
Unit #: 5H
Monthly CC & taxes: $1,650
See full listing here
Listed by Colin R. O'Leary at Berkshire Hathaway HomeServices New York Properties
Colin R. O'Leary
Licensed Real Estate Salesperson
Berkshire Hathaway HomeServices New York Properties
590 Madison Avenue, 37th Floor | New York, New York 10022
The the graph above from Streeteasy.com illustrates the supply of available condos, co-ops, and houses in New York city over the past decade. We’ve had a major construction boom in NYC over the last decade that has caused sales inventory to rise. All of this new inventory on top of resales (older properties) has created a buyer's market in many parts of the city.
Right now in October 2019, NYC has a little less than 20,000 residential listings on the market, a slight decrease from earlier this year. Sales inventory is the highest in Manhattan, followed by Brooklyn and then Queens. Sales inventory could continue to increase over the next couple of years. Contractors and developers in NYC filed for nearly 166,000 permits in 2018, according to the Department of Buildings.
Governors Island is a 172-acre island in New York Harbor in New York City. It's one of New York's lesser known tourist sites but that is quickly changing. Governors Island is located 800 yards south of Manhattan, and just 400 yards west of the shores of Brooklyn. This island is small but has big history. It first served as a military post during the American Revolution. From 1783 to 1966, the island was operated by the United States Army mainly as a training facility. In 1966 it became a United States Coast Guard installation until the island was decommissioned as a military base in 1996. Since then the island has been jointly controlled by the National Park Service and a non-profit called the Trust for Governors Island.
The National Park Service administers two former military fortifications on the north side of the island named Fort Jay and Castle Williams. The Trust for Governors Island maintains the remainder of the island which includes 52 historic buildings, abandon military housing, food trucks, art exhibits, and large green spaces. The island is now open to the public from May to September and has become a major tourist attraction. I recently traveled to the island and took some photos of the historic sites and more recently added sections of the park. Enjoy!