NYT: Luxury Towers Take New York

The article seems to indicate that many of the purchasers of these superluxury apartments are not
United States citizens and that the New York market is seen as lower in price than other cities such
as London. So nothing really new, except maybe the prices of the most expensive apartments. Would you
want to own at East 56th and Park?

"Would you want to own at East 56th and Park?

Yes.

**it is likely that many are the rootless superrich: Russian metals barons, Latin American tycoons, Arab sheiks and Asian billionaires. **

This is not who I would like to live with, the "rootless superrich" who will rarely be in residence. Also, I don't consider 56th and Park to be a real residential neighborhood (at least not yet anyway).

This article is another argument for why we must retain rent regulation in NYC. Most of you on this board don't remember a time when living in Manhattan was a lifestyle choice for the middle class and working class. It was a better city to live in then, in my opinion.

>This article is another argument for why we must retain rent regulation in NYC.

I'm struggling to make the connection.

"This article is another argument for why we must retain rent regulation in NYC."

What is wrong with Wayne, NJ or Irvington, NJ where you can get a nice pad for $600/month?

Why are you racist for not wanting to live in Irvington and only with Prime Manhattanites?

General...Amen to your comment. I definitely remember when Manhattan was mostly working/middle class (only the UES--excluding Yorkville, CPW and a few blocks around lower 5th Ave were the province of the wealthy) as I am a product of that community. I agree that it was a better city. The higher crime, grime and other woes of the past that people point to when saying today's New York is preferable, had nothing to do with the core population. Fiscal mismanagement, drugs and incompetent leadership were some of the key contributing factors. Rent regulation saved New York from becoming Detroit, we need (with some revisions) to keep us from becoming Dubai.

>Rent regulation saved New York from becoming Detroit, we need (with some revisions) to keep us from becoming Dubai.

Detroit is very affordable.

What this article REALLY says is that we need to reform property tax laws in NYC. As the NYT has noted in past articles, these ultra-expensive apartments often have much lower percentage property tax rates than do plain-old middle- and upper-middle class condos and coops around the city.

What NYC SHOULD do is what London recently did - put an extra tax on ultra-luxury units. Or do what Florida does on vacation homes. Or a combo of both. These guys are often not US citizens, or if they are, are not NY residents, and don't pay much in taxes here. Really, they ought to tack on an extra 1-5% per annum on the appraised value for units over $1MM - like 1% on $1 to 2.5MM, up to like 5% if its over $10MM. And ALSO give the exact equal amount of refund to full time New York residents who pay said tax. Therefore ACTUAL full time New Yorkers who already pay high income taxes here pay net nothing additional, but these oligarchs and sheaks and trust funders do.

The extra money could be used to fund "affordable" housing or schools or parks or more police or whatever else you want.

Here is what I mean, BTW:

"As Prices Soar to Buy a Luxury Address, the Tax Bills Don’t...

...Yet despite its sublime finishes, refined pedigree and nosebleed prices, the residential portion of that Manhattan building [the Plaza Hotel] is officially valued by the city, for tax purposes, at only $332 per square foot. In reality, the average price per square foot for apartments sold there over the past 18 months has been $7,813, according to the Miller Samuel appraisal firm.

That kind of disparity is true for many of the stratospherically expensive apartments in the city. As a result, their owners pay far less in property taxes, relative to the value of the apartments, than most New York apartment owners pay..."

http://www.nytimes.com/2012/10/16/nyregion/many-high-end-new-york-apartments-have-modest-tax-rates.html?_r=2&

Outrageous. WTF should foreign billionaires pay LOWER property taxes than people who live here?

Why should NYC listen to a Californian?

"As with many of these buildings, only about a quarter of the units will be occupied at any one time."

This can't be a healthy phenomenon for the city. Enormous resources are being directed into the creation of trophy properties for foreign billionaires to park their money--and these properties remain unoccupied for much of the year.

jason do you even know how to read a tax bill?

the RE assessment means nothing when the effective tax rate in NYC is around 13% , whereas CA is only 1.25% per prop 13..

so you can have a low assessment on something like $100,000 and pay $13,000 in tax rate, or have true market value and pay much lower tax rate of $6,250 on same property.

wow youre a dummie.

dum

dum

dum

@generalogoun,
>>" a time when living in Manhattan was a lifestyle choice for the middle class and working class. It was a better city to live in then, in my opinion."

I agree. NYC (Manhattan) used to be eclectic and real. Now, it's spoiled.

"I agree. NYC (Manhattan) used to be eclectic and real. Now, it's spoiled."

Irvington, NJ is still very enthused and "real."

Why don't you move there? Unless you're a racist.

A real racist.

Why not live just 20 mins west?

http://www.youtube.com/watch?v=c-GEi777h6M
Here you'll find your "real, edgy, and multi-cultural" 1980's of old New York, just a 15 minute PATH ride away.

Unless you're a racist.

Mira Mira..

"Would you want to own at East 56th and Park?

Yes"

OK, so know at least I know he is truly a moron -- "Co op President here," Oh my, let's fall down and wet our pants. He can dish it out, but he can't take it (except YOU KNOW WHERE!!!!!!!).

"jason do you even know how to read a tax bill?"

WTF are you talking about California? You are the dummy. The NYT article I linked to talked about New York City property tax rates versus New York City property tax rates. And it showed that, as a percent of the ACTUAL value of properties, trophy properties generally pay a much lower rate than average NYC properties. As in, at the upper echelons, property taxes become extremely regressive. And about half of this gain goes to non-NY residents.

"As Prices Soar to Buy a Luxury Address, the Tax Bills Don’t...

...Yet despite its sublime finishes, refined pedigree and nosebleed prices, the residential portion of that Manhattan building [the Plaza Hotel] is officially valued by the city, for tax purposes, at only $332 per square foot. In reality, the average price per square foot for apartments sold there over the past 18 months has been $7,813, according to the Miller Samuel appraisal firm.

That kind of disparity is true for many of the stratospherically expensive apartments in the city. As a result, their owners pay far less in property taxes, relative to the value of the apartments, than most New York apartment owners pay..."

http://www.nytimes.com/2012/10/16/nyregion/many-high-end-new-york-apartments-have-modest-tax-rates.html?_r=2&

Where Crazyccardo65?

These buyers are essentially laundering ill-gotten gains and no one cares.

Americans launder money overseas as well...

Oh, ok...

I guess it is legit then...

"Americans launder money overseas as well..."

Those tax havens tax the money parked over there. We should similarly tax trophy properties in NYC, and give rebates for an equal amount of this extra tax to NYS residents. Similar to how Florida taxes vacation homes higher than homes of full time florida residents.