Co-op financials

Oops, I transposed two digits. Repairs etc. should be 11% and interest 4.7%

Changes from 2008:

+23.4% Taxes
+07.3% Labor
+15.2% Repairs/Supplies/Other
-18.8% Water/Sewer/Utilities/Fuel
-00.0% Interest on mortgage
+12.2% Total

You ain't never gonna convince Matt that he could single-handedly cut your mtce by 50%.

From my experience real estate tax can make up anywhere from one-third to fifty percent of a co-op's annual budget, but your building appears to be hitting the upper limits. It may be counterintuitive that r.e taxes are going up when property values have gone down, but the way the system works, valuation, and thus taxes, depend on a hypothetical rent roll, not sales prices. The potential silver lining in the clouds is that the data used to calculate value is abour 18 months old and thus hasn't factored in most of the downturn in rents. Given that lag time, values and taxes should start coming down next year. For more on how real estate taxes are calculated you might have a look at: http://www.highrisesociety.com/money/what-goes-up-must-come-down-sooner-or-later/

Highrise: for small buildings in prime Manhattan (say 10 or fewer apts), taxes can and are often way MORE than 50% of the operating expenses of a building.

Thanks for your clarification. Yes, I was referring to larger high rises, where the cost is spread out over a larger number of units and proportionally less for each. But the manner in which the valuation is determined is the same, except when you get to really small co-ops and condos, I believe under 4 units. Those are Class 1, not Class 2, properties and their r.e. valuation is determined via a much more favorable method.

Agree that the manner of valuation is the same, but some of those 4-10 apt bldgs have higher taxes/sqft than much larger bldgs.

Time do fly. Here's how 2010 expenses broke out:

...2010.....2009.....2008
..50.3%....49.1%....44.6% Taxes
..26.0%....27.6%....28.8% Labor
..10.4%....11.0%....10.8% Repairs/Supplies/Other
....8.8%......7.6%....10.5% Water/Sewer/Utilities/Fuel
....4.5%......4.7%......5.3% Interest on mortgage

Changes from 2009:

+08.0% Taxes
-00.7% Labor
-00.6% Repairs/Supplies/Other
+22.2% Water/Sewer/Utilities/Fuel
-00.0% Interest on mortgage
+05.3% Total

how many units in your place? I know RE taxes are largest component of our maintenance as well. its a small building too though so though that might hurt us. under 20 units

80-something

>Highrise: for small buildings in prime Manhattan (say 10 or fewer apts), taxes can and are often way MORE than 50% of the operating expenses of a building

I disagree, Ive looked at countless setups for 10 to 20 unit apartment buildings for manhattan, queens, and brooklyn and have found taxes to run between 25 to 50% in 99% of the buildings.
It has been 4 to 5 years since Ive looked at setups though. ANd Ive never seen one over 60%.

Apologies, it was total expenses to gross income of the buildng for those numbers, not taxes to total expenses.

"Highrise: for small buildings in prime Manhattan (say 10 or fewer apts), taxes can and are often way MORE than 50% of the operating expenses of a building."

Well SOMEONE has to pay for all those New Yorkers who refuse to work.

The % of the maintenance that goes toward real estate taxes will almost certainly be above 50% for small buildings without an underlying mortgage.

For my small (< 10 unit) building in prime Manhattan, our maintenance is about:
40% taxes
40% underlying mortgage
10% insurance
3% utilities (water and common electric only)
3% labor
3% reserves
1% miscellaneous

We have a fairly large underlying mortgage, with pro rata shares of up to $65k for one bedroom units, but recently refinanced into a self-liquidating 15-year mortgage to hopefully do something about this debt, which has only rolled over indefinitely for the past 25 years.

Our reserves are under-funded relative to where we think they should be, but we want to keep maintenance reasonable and (at the moment) have a very padded savings account with $80k net of upcoming repair costs.

Another year:

...2011.....2010.....2009.....2008
...48.6%....50.3%....49.1%....44.6% Taxes
...25.0%....26.0%....27.6%....28.8% Labor
...12.7%....10.4%....11.0%....10.8% Repairs/Supplies/Other
.....9.5%......8.8%......7.6%....10.5% Water/Sewer/Utilities/Fuel
.....4.2%......4.5%......4.7%......5.3% Interest on mortgage

The 22% increase in "Other" seems to be due to a $40K jump in legal fees. There's also more than $40K in receivable-from-shareholders, so apparently the co-op is suing a shareholder and may recover the money.

we're flat.

...2012...2011.....2010.....2009.....2008
...50.1%...48.6%....50.3%....49.1%....44.6% Taxes
...25.5%...25.0%....26.0%....27.6%....28.8% Labor
...11.3%...12.7%....10.4%....11.0%....10.8% Repairs/Supplies/Other
.....9.1%.....9.5%......8.8%......7.6%....10.5% Water/Sewer/Utilities/Fuel
.....4.1%.....4.2%......4.5%......4.7%......5.3% Interest on mortgage

Apple. $150 in cash. $40 in earnings. Jan 14' $500 puts at $135/share. So worst case scenario you gotta buy apple at $365/share. Or $150 cash plus 3x earnings.

Those are financials I can believe in...... Best case. Apple comes w kickass iPhone 6 in call and pumps above $600.

Oh well. Go nyc re!!!!!

...2013......2012......2011......2010......2009......2008
...47.6%...50.1%...48.6%....50.3%....49.1%....44.6% Taxes
...27.0%...25.5%...25.0%....26.0%....27.6%....28.8% Labor
...11.7%...11.3%...12.7%....10.4%....11.0%....10.8% Repairs/Supplies/Other
...11.1%......9.1%......9.5%......8.8%......7.6%....10.5% Water/Sewer/Utilities/Fuel
.....2.7%......4.1%......4.2%......4.5%......4.7%......5.3% Interest on mortgage

...2014......2013......2012......2011......2010......2009......2008
...46.6%...47.6%...50.1%...48.6%....50.3%....49.1%....44.6% Taxes
...27.4%...27.0%...25.5%...25.0%....26.0%....27.6%....28.8% Labor
...12.2%...11.7%...11.3%...12.7%....10.4%....11.0%....10.8% Repairs/Supplies/Other
...11.4%...11.1%......9.1%......9.5%......8.8%......7.6%....10.5% Water/Sewer/Utilities/Fuel
.....2.4%......2.7%......4.1%......4.2%......4.5%......4.7%......5.3% Interest on mortgage

Changes in the six years from 2008:

+35.9% Taxes
+23.5% Labor
+47.8% Repairs/Supplies/Other
+41.1% Water/Sewer/Utilities/Fuel
-41.7% Interest on mortgage
+30.0% Total Expense

2014
45% Taxes
28% Labor
12% Repairs/Supplies Other
8% Water/Sewer/Utilities/Fuel
7% Interest on Morgtgage

2013 respectively:
47%
26%
11%
7%
9%

2008:
38%
25%
11%
10%
16%

Change from 2008:
38% Taxes
32% Labor
18% Repairs/Supplies/Other
-1% Water/Sewer/Utilities/Fuel
-51% Interest on mortgage
16% Total Expense