What would you pay?

You'd get rid of that beautiful bathroom tile? And that gorgeous drop ceiling? For shame.
What makes the monthlies so high?
Stll, I do like the floor plan.

What would you bid?

10K month in taxes and maintenance. What would it rent for? $12K? 15K? I think the price should be $1.5 based on that, but someone will love the views and pay more.

If 200 East 57th is a comp, someone will definitely pay more for those views.

ali r.
{downtown broker}

Ali, 200 East 57 is a coop with $2 per month in maintenance. This $6 in maintenance and taxes. I think Chasing Wamus may be right. $1.5mm or below as beyond a certain point, extraordinarily high taxes are unsustainable as they tend to go up the same percentage as other apartments with more reasonable taxes. So a few down the line, the taxes may be $9k.

http://streeteasy.com/building/200-east-57-street-new_york/sale/1243289

Chasing, Rent is probably 12k in this market.

Well, with the caveat that I'm not the listing broker, so I don't know what he/she used, I do think 200 E 57th is a good comp. But I didn't mean the 7th floor listing -- I think that we are dealing with a view apartment here, so we've got to try to comp the view -- I meant PHB, which is a 19th floor listing, with terraces. Maint $6K.

http://streeteasy.com/sale/1147880

ali

1.5 max, unless I knew I could divide it into two units, then I might to go 2. Was it ever 2 units?

Always 1 unit.

Ali, Thanks for the example. The apt is large at 1800 sq ft interior with 500 sq ft exterior putting it at 2.5 per sq ft range. Say $3. This is $6 range. How much discount for double maintenance. I think a $1mm. That is why $1.5mm.

Ali, To clarify, the 188 east 70th is $6 per month per sqft in maintenance and taxes. PH for the 200 East 57th is $2.5-$3 max/ per sq ft per month.

My guess is that those taxes are a mistake: take a look at the ratio of RET to CC in the other listings in the building.

30 , They are correct as I checked department of finance.

300, if I follow your math, you're saying that #PHB is 3600 sf. But if you compare the floorplans, it's only about 750-1000 sf bigger than 30A, so the maint/sf isn't as much "cheaper" as you suggest.

which flows into the larger point that I'm trying to make, which is that with an outlier apartment (that has something really hard to find, like spectacular views) I don't think buyers see the relationship between maintenance and price as as linear as they do with more average (I'm hesitant to say "cookie-cutter" apartments).

Buyers are price-sensitive, especially in this market, but once they decide to buy a luxury car, they don't always check to see how energy-efficient it is.

Ali, Thanks for your comments and interesting analogy but energy-efficiency for cars. However, closer analogy will be paying $100k in insurance per year for a car. That will limit it to people with more than $25mm in assets who have many more choices with a view of central park. I think this apt is more of a AMG 63 E class than Bugatti Veyron. Many Bugatti Veyrons in this market.
BTW you will make a good listing broker.

Here is comp. At least get twice daily maid service and square footage does not include terrace. They could not move it at $1000 per sq ft.

http://streeteasy.com/sale/1207782

I had the same reaction as 30yrs, thinking the taxes must be an error or perhaps was a result of some sort of back tax issue. But this place has had taxes north of $50K a year since 10 years ago. And it makes no sense against other units in the building. Seems like that need to challenge the assessment. But, this also shows the problem with our property tax system, that favors rentals and coops compared to condos. My taxes have doubled in the past 10 years.

nyc_sport, I saw the same for 10 years back. I would think that the seller already has tried hard to lower taxes given that the place is on the market for 2 years.

Taxes roughly correspond with the unit's PCI of the condo.

E.g., 30B next door pays $92,720 per year. It has 1.515288% of the CI.
30A pays $88,305 per year. (The listing understates it.) It has 1.485407% of the CI.

Thanks nwt.

NWT always is better at mining the statistics. But, looking at other units for sale, the taxes are less than the common charges, even for a unit (19c) asking more. Here they are a multiple. Something still seems wrong. But paying almost $90K a year in property tax in inherently wrong. I pay about half that, and still find it offensive, even more so since I pay this "school" tax in multiple places and have no children.

Manhattan taxes largely support other boroughs.

The ratio of Real Estate Taxes to Common Charges should be the same throughout a building. RET need to be Ad Valorem by law. Therefore they should be allocated in the exact same manner as percentage of Common Interest. Several decades ago there was a case by an owner in ?Olympic Tower? because all the units in each line were allocated the same percentage of Common Interest and RET even though prices went up as you got higher in the building. The Dept. of Finance issued a Private Letter Ruling that all future Offering Plans needed to reflect this.

It looks like the buyer will get screwed if the property tax deduction gets capped at $10k.